Hallador Energy Co (NASDAQ: HNRG)

Sector: Energy Industry: Thermal Coal CIK: 0000788965
Market Cap 736.69 Mn
P/B 5.04
P/E -4.24
P/S 1.60
ROIC (Qtr) -86.71
Div Yield % 0.00
Rev 1y % (Qtr) 39.65
Total Debt (Qtr) 53.23 Mn
Debt/Equity (Qtr) 0.36
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About

Investment thesis

Bull case

  • Strong operating cash flow of 111.93M provides robust 2.10x coverage of total debt 53.23M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 409.46M provides 7.69x coverage of total debt 53.23M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 111.93M provides strong 32.65x coverage of stock compensation 3.43M, indicating sustainable incentive practices.
  • Strong operating cash flow of 111.93M provides 4.41x coverage of SG&A expenses 25.41M, showing efficient operational cost management.
  • Operating cash flow of 111.93M fully covers other non-current liabilities 52.79M by 2.12x, showing strong long-term stability.

Bear case

  • Operating cash flow of 111.93M barely covers its investment activities of (52.02M), with a coverage ratio of -2.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (52.02M) provide weak support for R&D spending of 238000, which is -218.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 111.93M provides minimal -18.61x coverage of tax expenses of (6.01M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (163.74M) show weak coverage of depreciation charges of 52.36M, with a -3.13 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 52.36M relative to operating cash flow of 111.93M, which is 0.47x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Related and Nonrelated Parties Breakdown of Revenue (2024)

Peer comparison

Companies in the Thermal Coal
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CNR Core Natural Resources, Inc. 4.45 Bn -29.06 1.07 452.49 Mn
2 BTU Peabody Energy Corp 4.41 Bn -135.00 1.11 407.60 Mn
3 ARLP Alliance Resource Partners Lp 1.90 Bn 9.21 1.27 471.55 Mn
4 NRP Natural Resource Partners Lp 0.88 Bn 9.00 3.21 69.38 Mn
5 HNRG Hallador Energy Co 0.74 Bn -4.24 1.60 53.23 Mn
6 NC Nacco Industries Inc 0.42 Bn 8.07 2.07 87.85 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.86 1.12
EV to Cash from Ops. EV/CFO 6.79 8.19
EV to Debt EV to Debt 14.27 10.87
EV to EBIT EV/EBIT -4.64 19.66
EV to EBITDA EV/EBITDA -6.84 5.56
EV to Free Cash Flow [EV/FCF] EV/FCF 13.18 13.40
EV to Market Cap EV to Market Cap 1.03 1.13
EV to Revenue EV/Rev 1.65 2.11
Price to Book Value [P/B] P/B 5.04 2.36
Price to Earnings [P/E] P/E -4.24 -23.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.83
Dividend per Basic Share Div per Share (Qtr) 0.00 1.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 31.65
Interest Coverage Int. cover (Qtr) -10.26 2.12
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.62 0.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 268.03 30.70
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -1.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,422.49 -223.40
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -328.31 53.05
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,080.88 -202.48
EBT Growth (1y) % EBT 1y % (Qtr) -554.13 -123.41
EPS Growth (1y) % EPS 1y % (Qtr) -657.63 -114.77
FCF Growth (1y) % FCF 1y % (Qtr) 203.00 18.87
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 68.14 -1.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.13 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 0.17 0.61
Current Ratio Curr Ratio (Qtr) 0.66 1.89
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 0.20
Interest Cover Ratio Int Coverage (Qtr) -10.26 2.12
Times Interest Earned Times Interest Earned (Qtr) -10.26 2.12
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -24.10 19.53
EBIT Margin % EBIT Margin % (Qtr) -35.46 8.90
EBT Margin % EBT Margin % (Qtr) -38.92 6.55
Gross Margin % Gross Margin % (Qtr) 28.50 31.52
Net Profit Margin % Net Margin % (Qtr) -37.60 7.43