Despite a negative Jensen Alpha of
-0.46 and a Total Risk Alpha of
-0.29, indicating potential underperformance, Ramaco Resources (NASDAQ: METC) stock still holds potential upside of
3.86%. With a recent price change of
0.39 and a high price of
$12.25, strategic timing and careful analysis could yield significant returns for savvy investors in the coking coal industry.
Key Takeaways
Ramaco Resources holds a strong buy rating from four analysts. Our trading recommendation tool can cross-check this consensus to evaluate the company's growth potential in the current economic cycle. However, the company's profit margin stands at a mere 0.08%, indicating that even a minor decline in revenue could result in a net loss. This is significantly below average. The operating margin of 0.02% suggests that for every $100 of sales, it generated a net operating income of $0.02.
The successful prediction of Ramaco Resources
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Ramaco Resources, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Ramaco Resources based on Ramaco Resources hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Ramaco Resources's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Ramaco Resources's related companies.
Use Technical Analysis to project Ramaco expected Price
Ramaco Resources technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Ramaco Resources technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Ramaco Resources trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Ramaco Resources Gross Profit
Ramaco Resources Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ramaco Resources previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ramaco Resources Gross Profit growth over the last 10 years. Please check Ramaco Resources'
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Ramaco Resources
The company reported the previous year's revenue of 693.52
M. Net Income was 82.31
M with profit before overhead, payroll, taxes, and interest of 232.73
M.
| 2021 | 2022 | 2023 | 2024 (projected) |
Short Long Term Debt Total | 51.4M | 138.1M | 100.6M | 105.6M | Total Assets | 329.0M | 596.3M | 665.8M | 699.1M |
Current Deferred Revenue Breakdown
Ramaco Resources' Current Deferred Revenue is increasing over the years with slightly volatile fluctuation. Current Deferred Revenue is expected to dwindle to about 15.9
M. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At present, Ramaco Resources' Current Deferred Revenue is projected to increase significantly based on the last few years of reporting.
| 2010 | 11.76 Million |
| 2020 | 11.64 Million |
| 2021 | 19.9 Million |
| 2023 | 22.88 Million |
| 2024 | 15.87 Million |
Time is money, and in the case of Ramaco Resources (NASDAQ: METC), timing is everything. With a market capitalization of $615.86M and a positive daily balance of power at 0.65, the company shows potential for growth. However, the stock's high variance of 11.73 and standard deviation of 3.43 suggest a significant level of risk. Despite this, the company's strong gross profit of $232.73M and retained earnings of $91.94M indicate a solid financial foundation. Therefore, while the timing for trading Ramaco Resources stock requires careful consideration due to its volatility, its robust financial health makes it a potentially rewarding investment.
Will Ramaco Resources latest surge continue?
Despite Ramaco Resources' recent stock surge, its Treynor Ratio has fallen to -2.39, potentially worrying investors. This performance metric measures risk-adjusted returns, and a negative figure typically implies the stock may not be rewarding investors sufficiently for its risk. This could suggest a future price drop, casting doubt on the stock's recent surge. Investors should closely monitor this. Ramaco Resources has very low volatility, with a skewness of -1.85 and kurtosis of 7.52. Understanding market volatility trends can help investors time the market.
Using volatility indicators correctly can measure Ramaco Resources' stock risk against market volatility during both bullish and bearish trends. The increased volatility in bear markets can directly affect Ramaco Resources' stock price and add stress to investors as they see their shares' value decline, often prompting them to rebalance their portfolios by purchasing different financial instruments as prices drop.Despite a modest market dip, Ramaco Resources (METC) has managed to climb over 3 percent, demonstrating its resilience and potential for growth. The company's current valuation market value stands at
$12.08, with a possible upside price of $14.63, suggesting a promising future for investors. Analysts have a strong buy consensus on the stock, backed by three strong buy recommendations. The analyst target price estimated value is $10.25, which is lower than the current market value, indicating the stock is trading at a premium. However, the naive expected forecast value is
$11.13, which is closer to the current market value, providing a more optimistic outlook. Given these factors, investing in Ramaco Resources could offer substantial returns for investors..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ramaco Resources. Please refer to our
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