- Even though the coal industry is not known for providing high incomes to their shareholders, Warrior Met Coal stood out with their massive special dividends.
- Whilst these ended during 2020 due to the severe downturn, they could still come back in the future and thus provide a seldom-seen 20% yield on current cost.
- Their cash flow performance saw a massive impact from this downturn, but importantly, their operating margin has remained positive and thus helps wait for a recovery.
- Their financial position remains very healthy with very low leverage and strong liquidity, which also help reduce the downside risks.
- This allows them to simply pick up where they left off but I only believe that a neutral rating is appropriate due to their volatile earnings.
For further details see:
Warrior Met Coal: The 20%+ Yield Could Still Come Back In The Future