Ramaco Resources (METC) AI Stock Analysis

• Market Cap: $487.21M
• Dividend Yield: 4.55%
• Average Volume (3M): 795.95K
• Price to Earnings (P/E): 43.1
• Beta (1Y): 1.05
• Revenue Growth: -10.23%
• EPS Growth: -100.04%
• Country: US
• Employees: 984
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Coal
• EPS (TTM): -0.19
• Shares Outstanding: 44,418,300
• 10 Day Avg. Volume: 764,256
• 30 Day Avg. Volume: 795,951
• PEG Ratio: -0.55
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.65
• 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: $13.00
• Price Target Upside: 38.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $9.50 ▲(1.06%Upside)

Ramaco Resources' overall score is driven primarily by financial performance challenges, including recent profitability issues and valuation concerns. Technical indicators present a mixed outlook with uncertainty in market direction. The earnings call provides some positive insight into operational strengths and future growth prospects, but reduced guidance and financial losses weigh heavily on the company's outlook.

Positive Factors

Earnings

Ramaco reported adjusted EBITDA of $9.8M, beating consensus expectations due to better than expected sales volumes and costs.

Financial Strategy

The company believes it can finance its Brook Mine project on its own, showing confidence in its financial strategy.

Operational Efficiency

The company trimmed its full-year cash cost per ton and capital expenditure targets, indicating more efficient operations.

Negative Factors

Financial Performance

Full-year EBITDA estimate declines to $120M from $198M after incorporating updates and a lower met price deck.

Market Conditions

Weak market conditions have led to a reduction in shipment forecasts and a downward revision in pricing expectations.

Sales Guidance

Ramaco has trimmed full-year production and sales guidance due to expected continued weak market conditions.

Ramaco Resources Business Overview & Revenue Model

Company Description

Ramaco Resources, Inc. produces and sells metallurgical coal. The company's development portfolio includes the Elk Creek project consisting of approximately 20,200 acres of controlled mineral and 16 seams located in southern West Virginia; the Berwind property comprising approximately 41,300 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia; the Knox Creek property consisting of approximately 62,100 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,570 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company serves blast furnace steel mills and coke plants in the United States, as well as international metallurgical coal consumers. The company was founded in 2015 and is headquartered in Lexington, Kentucky.

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: Positive
• Last Price: 9.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 9.4 is below the 20-day moving average (MA) of 9.45, above the 50-day MA of 9.02, and below the 200-day MA of 10.18, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 37.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for METC.

Ramaco Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTU	80 Outperform	$1.76B	5.41	10.33%	2.16%	-7.42%	-26.06%
ARLP	80 Outperform	$3.38B	12.36	14.71%	10.64%	-8.53%	-53.44%
SXC	71 Outperform	$725.46M	7.85	14.26%	5.47%	-8.76%	51.59%
METC	62 Neutral	$487.21M	43.10	-0.08%	4.55%	-10.23%	-100.04%
AMR	61 Neutral	$1.51B	57.45	1.66%	0.36%	-23.34%	-95.18%
HCC	59 Neutral	$2.54B	23.98	5.20%	0.71%	-21.04%	-75.78%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%

Ramaco Resources Corporate Events

Ramaco Resources Announces Cash Dividend Amid Q1 Loss

On May 12, 2025, Ramaco Resources announced a cash dividend of $0.1811 per share for its Class B common stock, payable on June 13, 2025. The company reported a net income loss of $9.5 million for the first quarter of 2025, with significant production achievements despite adverse weather conditions. Ramaco is adjusting its 2025 guidance due to weak market conditions, reducing production and capital expenditure expectations. The company is advancing its rare earth and critical minerals project at the Brook Mine in Wyoming, with plans to commence large-scale mining in June 2025. A $6.1 million matching grant from Wyoming supports this initiative, highlighting its strategic importance amid global supply chain concerns.

The most recent analyst rating on (METC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Ramaco Resources stock, see the METC Stock Forecast page.

Ramaco Resources Appoints Joseph Manchin to Board

On April 18, 2025, Ramaco Resources appointed former U.S. Senator Joseph Manchin III as an independent member of its Board of Directors, effective immediately. Manchin, known for his leadership in energy policy and economic development, will bring valuable insights to the company, particularly as it advances its rare earth element development in Wyoming. His appointment is seen as a strategic move to enhance Ramaco’s positioning in the U.S. coal industry and critical mineral supply chains, with implications for national security and economic resilience.

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.