Ramaco Resources Stock To $15?

Ramaco Resources (METC) stock has fallen 20% during the past day, and is currently trading at $22.09. Our multi-factor assessment suggests that it may be time to sell METC stock. We have, overall, a pessimistic view of the stock, and a price of $15 may not be out of reach. We believe there are several things to fear in METC stock given its overall Weak operating performance and financial condition. This isn’t appropriately reflected in the stock’s Moderate valuation which is why we think it is Unattractive.

Below is our assessment:

Don’t get too attached to METC stock, even if you love it. Stocks crash. High Quality Portfolio lets you navigate that risk.

Let’s get into details of each of the assessed factors but before that, for quick background: With $1.3 Bil in market cap, Ramaco Resources provides metallurgical coal from projects like Elk Creek, serving U.S. blast furnace steel mills and coke plants.

[1] Valuation Looks Moderate

This table highlights how METC is valued vs broader market.

[2] Growth Is Very Weak

• Ramaco Resources has seen its top line grow at an average rate of 5.1% over the last 3 years
• Its revenues have fallen -17% from $698 Mil to $580 Mil in the last 12 months
• Also, its quarterly revenues declined -27.7% to $121 Mil in the most recent quarter from $167 Mil a year ago.

This table highlights how METC is growing vs broader market.

[3] Profitability Appears Very Weak

• METC last 12 month operating income was $-34 Mil representing operating margin of -5.9%
• With cash flow margin of 6.2%, it generated nearly $36 Mil in operating cash flow over this period
• For the same period, METC generated nearly $-33 Mil in net income, suggesting net margin of about -5.7%

This table highlights how METC profitability vs broader market.

[4] Financial Stability Looks Very Strong

• METC Debt was $136 Mil at the end of the most recent quarter, while its current Market Cap is $1.3 Bil. This implies Debt-to-Equity Ratio of 10.2%
• METC Cash (including cash equivalents) makes up $194 Mil of $850 Mil in total Assets. This yields a Cash-to-Assets Ratio of 22.8%

[5] Downturn Resilience Is Weak

METC has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• METC stock fell 58.3% from a high of $18.59 on 29 October 2021 to $7.75 on 25 August 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 January 2024
• Since then, the stock increased to a high of $54.55 on 14 October 2025 , and currently trades at $22.09

 
2020 Covid Pandemic

• METC stock fell 47.9% from a high of $3.76 on 2 January 2020 to $1.96 on 13 May 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 12 February 2021

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