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BHP vs HCC

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
HCC
Warrior Met Coal, Inc.
NEUTRAL
Price
$87.47
Market Cap
$4.62B
Sector
Basic Materials
AI Confidence
80%

Valuation

P/E Ratio
BHP
19.07
HCC
80.99
Forward P/E
BHP
15.45
HCC
9.65
P/B Ratio
BHP
7.19
HCC
2.15
P/S Ratio
BHP
3.38
HCC
3.52
EV/EBITDA
BHP
15.39
HCC
18.86

Profitability

Gross Margin
BHP
82.21%
HCC
22.99%
Operating Margin
BHP
37.7%
HCC
9.01%
Profit Margin
BHP
17.59%
HCC
4.35%
ROE
BHP
21.99%
HCC
2.69%
ROA
BHP
11.02%
HCC
1.06%

Growth

Revenue Growth
BHP
-8.2%
HCC
29.4%
Earnings Growth
BHP
-34.0%
HCC
1918.0%

Financial Health

Debt/Equity
BHP
0.49
HCC
0.13
Current Ratio
BHP
1.46
HCC
3.19
Quick Ratio
BHP
1.06
HCC
2.08

Dividends

Dividend Yield
BHP
3.26%
HCC
0.37%
Payout Ratio
BHP
69.9%
HCC
29.63%

AI Verdict

BHP NEUTRAL

BHP's Piotroski F-Score of 6/9 indicates stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $27.35 and intrinsic value of $24.78, reflecting a substantial premium. Despite strong profitability metrics like 37.7% operating margin and 21.99% ROE, earnings and revenue growth are sharply negative year-over-year. Analysts consensus is a hold with a $57.00 target, below current price, suggesting limited upside.

Strengths
High operating margin of 37.70% indicates strong cost control and pricing power
ROE of 21.99% exceeds sector average significantly, signaling efficient equity use
Debt/Equity of 0.49 is below sector average of 0.63, indicating conservative leverage
Risks
Revenue growth down 8.20% YoY and earnings down 34.00%, indicating deteriorating fundamentals
P/E of 19.07 is high relative to earnings contraction, increasing valuation risk
Price/Book of 7.19 is extremely elevated, suggesting overvaluation relative to book value
HCC NEUTRAL

Warrior Met Coal (HCC) presents a stark contrast between its pristine balance sheet and its current valuation. While the Piotroski F-Score of 4/9 indicates stable financial health and the company maintains exceptionally low leverage (Debt/Equity 0.13), the stock is trading at a massive premium to its Graham Number ($31.46) and Intrinsic Value ($31.86). The discrepancy between the trailing P/E (80.99) and Forward P/E (9.65) suggests the market is pricing in a significant earnings recovery, but current ROE (2.69%) and ROA (1.06%) remain anemic.

Strengths
Exceptionally low Debt/Equity ratio (0.13)
Strong liquidity with a Current Ratio of 3.19
Robust YoY Revenue growth of 29.40%
Risks
Severe overvaluation relative to Graham Number and Intrinsic Value
Very low profitability metrics (ROE 2.69%, Profit Margin 4.35%)
Bearish insider sentiment with significant selling by the CEO

Compare Another Pair

BHP vs HCC: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Warrior Met Coal, Inc. (HCC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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