Ramaco Resources (METC) AI Stock Analysis

• Market Cap: $458.28M
• Dividend Yield: 3.16%
• Average Volume (3M): 963.35K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.10
• Revenue Growth: -3.93%
• EPS Growth: -88.36%
• Country: US
• Employees: 984
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Coal
• EPS (TTM): 0.19
• Shares Outstanding: 44,403,347
• 10 Day Avg. Volume: 955,004
• 30 Day Avg. Volume: 963,346
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.71
• Price to Cash Flow (P/CF): 7.60
• P/FCF Ratio: 22.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 72.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Ramaco Resources has demonstrated strong operational efficiency and strategic advancements, particularly in its rare earth project. However, challenges such as high valuation, market headwinds, and technical bearish trends weigh on the overall score. Record liquidity and strong earnings performance provide a solid foundation for potential recovery, but caution is advised due to ongoing market challenges.

Positive Factors

Earnings

Ramaco Resources reported 4Q adjusted EBITDA of $29M, beating the consensus estimate of $22M and our estimate of $24M.

Operational Efficiency

With the Maben prep plant now in operation, net trucking costs were reduced by over $20 per clean ton.

Negative Factors

Cost Management

The company anticipates cash costs per ton will land towards the high end of its full-year guidance range due to freezing temperatures and flooding.

Market Conditions

1Q results are expected to be the weakest of the year as they will be pressured by extreme weather and weak market conditions.

Ramaco Resources Business Overview & Revenue Model

Company Description

Ramaco Resources, Inc. (NASDAQ: METC) is a U.S.-based metallurgical coal company focused on the production and sale of high-quality metallurgical coal for the steelmaking industry. The company operates primarily in the Appalachian region, with a strong presence in West Virginia, Virginia, and Pennsylvania. Ramaco Resources owns and manages several coal mines and processing facilities, positioning itself as a key supplier of metallurgical coal to both domestic and international steel producers.

How the Company Makes Money

Ramaco Resources generates revenue primarily through the extraction and sale of metallurgical coal, which is a critical component in the steelmaking process. The company sells its coal to a diverse customer base, including major steel producers in the United States and abroad. Revenue is largely driven by the volume of coal produced and sold, as well as the prevailing market prices for metallurgical coal. Additionally, Ramaco Resources benefits from operational efficiencies and strategic investments in its mining operations, which help to control costs and maximize profitability. The company may also engage in strategic partnerships or long-term contracts with key customers, providing a stable revenue stream and enhancing its market position.

Ramaco Resources Financial Statement Overview

Summary

Ramaco Resources presents a mixed financial performance with strong operational efficiencies but faces challenges in revenue growth and profit margins. The balance sheet remains solid, but increasing debt levels warrant attention. Cash flow generation is strong, yet free cash flow consistency needs improvement.

Income Statement

Ramaco Resources showed a volatile revenue trajectory with a decline in the latest period compared to the previous year. The gross profit margin remained high, reflecting efficient cost management. However, the net profit margin has decreased significantly, indicating pressure on bottom-line profitability.

Balance Sheet

The company's balance sheet is relatively strong with a moderate debt-to-equity ratio, indicating a balanced leverage position. The equity ratio is stable, suggesting a solid equity base. However, there is a noticeable increase in total debt, which could pose a risk if it continues to rise.

Cash Flow

Operating cash flow remained robust, demonstrating the company's ability to generate cash from operations. However, free cash flow growth has been inconsistent, and the free cash flow to net income ratio indicates potential concerns with cash conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
666.29M	693.52M	565.69M	283.39M	168.91M
	Gross Profit
133.00M	199.73M	232.73M	87.98M	23.41M
	EBIT
16.64M	95.25M	150.39M	39.53M	-7.17M
	EBITDA
86.66M	150.90M	192.70M	73.78M	14.31M
	Net Income Common Stockholders
11.19M	82.31M	116.04M	39.76M	-4.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.01M	41.96M	35.61M	21.89M	5.30M
	Total Assets
674.69M	665.84M	596.34M	329.03M	228.62M
	Total Debt
132.34M	100.55M	138.11M	51.44M	17.45M
	Net Debt
99.33M	58.59M	102.50M	29.55M	12.15M
	Total Liabilities
311.88M	296.23M	287.14M	117.96M	59.53M
	Stockholders Equity
362.81M	369.61M	309.20M	211.07M	169.09M
Cash Flow		Free Cash Flow
57.43M	78.13M	64.86M	23.87M	-11.44M
	Operating Cash Flow
112.67M	161.04M	187.87M	53.34M	13.31M
	Investing Cash Flow
-70.83M	-72.21M	-145.71M	-59.61M	-24.75M
	Financing Cash Flow
-50.79M	-82.52M	-28.50M	22.37M	11.29M

Ramaco Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For METC, the sentiment is Neutral. The current price of 8.7 is above the 20-day moving average (MA) of 8.33, below the 50-day MA of 9.02, and below the 200-day MA of 10.74, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 23.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for METC.

Ramaco Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	79 Outperform	$3.38B	9.50	19.34%	10.63%	-4.60%	-42.35%
BTU	78 Outperform	$1.37B	4.16	10.41%	2.67%	-14.50%	-46.36%
HCC	69 Neutral	$2.30B	9.14	12.64%	0.68%	-9.10%	-47.93%
SXC	67 Neutral	$727.96M	7.65	14.82%	5.35%	-6.19%	65.91%
METC	63 Neutral	$458.28M	41.71	3.06%	3.16%	-3.93%	-88.36%
AMR	60 Neutral	$1.44B	8.35	11.64%	0.36%	-14.81%	-71.49%
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%

Ramaco Resources Corporate Events

Ramaco Resources Announces Leadership and Board Changes

On March 18, 2025, Ramaco Resources announced changes in its executive leadership and Board of Directors. E. Forrest Jones, Jr. resigned from the Board effective March 14, 2025, to become the new General Counsel starting May 1, 2025. He was honored with the title of Director Emeritus. Evan H. Jenkins, the current General Counsel and Secretary, was appointed to the Board and named Vice-Chairman, effective March 14, 2025. Jenkins will continue as Secretary after stepping down as General Counsel upon Jones’ commencement. These changes reflect strategic leadership adjustments aimed at leveraging the extensive legal and regulatory expertise of both Jones and Jenkins to strengthen the company’s operations and governance.

Ramaco Resources Secures Grant for Rare Earth Project

On March 17, 2025, Ramaco Resources announced it received a $6.1 million matching grant from the Wyoming Energy Authority for its Wyoming CORE Brook Mine project. This funding supports the construction of a rare earth and critical minerals pilot processing facility in Sheridan, Wyoming, marking the first new rare earth mine in the U.S. since 1952. The project aims to extract valuable rare earth elements and critical minerals from unconventional coal and carbonaceous ore deposits, potentially positioning Wyoming as a key player in meeting national energy and security needs.

Ramaco Resources Achieves Record Q4 Performance in 2024

Ramaco Resources reported its strongest operational and financial quarter of 2024 in Q4, achieving a 24% increase in Adjusted EBITDA to $29.2 million despite a decline in metallurgical coal prices. The company sold a record 1.1 million tons, reduced cash costs, and maintained solid cash margins per ton sold. Looking ahead to 2025, Ramaco anticipates continued operational progress, with significant sales commitments and ongoing development of its rare earth and critical minerals project in Wyoming.

Ramaco Resources Announces Q1 2025 Stock Dividend

On March 4, 2025, Ramaco Resources announced the dividend ratio for its previously declared Class A common stock dividend for the first quarter of 2025. Shareholders of record on February 28, 2025, will receive a dividend payable in Class B common stock, with each Class A shareholder receiving 0.015537 of a Class B share per Class A share, based on the Class B closing price of $8.85. No fractional shares will be issued, and cash will be paid for any fractional shares. This announcement reflects Ramaco’s ongoing commitment to shareholder value and its strategic financial management.

Ramaco Resources Declares First Quarter Cash Dividend

On February 18, 2025, Ramaco Resources announced a first quarter cash dividend of $0.1971 per share for its Class B common stock, payable on March 14, 2025, to shareholders recorded on February 28, 2025. This announcement reflects the company’s commitment to returning value to shareholders, as it also declared a separate Class A dividend payable in Class B stock, highlighting its strong financial position and strategic focus on shareholder returns.