Hallador Story

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HNRG -- USA Stock  

USD 2.04  0.03  1.45%

While many traders are getting carried away by overanalyzing energy space, it is reasonable to digest Hallador Energy. Why are we still confident in anticipation of a complete recovery. Is the firm operations in 2021 sustainable? Here we are going to cover Hallador Energy perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Is Hallador Energy (NASDAQ:HNRG) ready for a correction?
Hallador Energy currently holds 153.86 M in liabilities with Debt to Equity (D/E) ratio of 0.79, which is about average as compared to similar companies. The entity has a current ratio of 1.07, suggesting that it is not liquid enough and may have problems paying out its financial obligations when due.
We provide advice to complement the regular expert consensus on Hallador Energy. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Hallador Energy using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hallador Energy based exclusively on its fundamental and basic technical indicators. By analyzing Hallador Energy's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hallador Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hallador Energy. We calculate exposure to Hallador Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hallador Energy's related companies.

Hallador Energy Investment Alerts

Hallador investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Hallador Energy performance across your portfolios.Please check all investment alerts for Hallador

Hallador Energy Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Hallador value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hallador Energy competition to find correlations between indicators driving the intrinsic value of Hallador.

How Hallador utilizes its cash?

To perform a cash flow analysis of Hallador Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hallador Energy is receiving and how much cash it distributes out in a given period. The Hallador Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Hallador Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 52.58 Million

A Deeper Perspective

The latest price surge of Hallador Energy may raise some interest from shareholders. The stock closed today at a share price of 1.63 on 324,403 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in April. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.88. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Hallador Energy partners.
 2018 2019 2020 2021 (projected)
Interest Expense16.29 M16 M18.4 M14.89 M
Gross Profit78.19 M75.6 M86.94 M89.52 M

Margins Breakdown

Hallador profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Hallador Energy itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Hallador Energy profit margins.
Operating Margin(24.16)
EBITDA Margin(0.0508)
Gross Margin0.26
Profit Margin(0.17)

Hallador Energy Net Income Per Employee is rather stable at the moment. Also, Hallador Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Hallador Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA was -16,285,476.

Our Hallador analysis indicates possible reversion in April

The downside deviation is down to 5.81 as of today. Hallador Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Hallador Energy independently to ensure intended market timing strategies are aligned with expectations about Hallador Energy volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hallador Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hallador Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Hallador Energy

Although other companies in the thermal coal industry are either recovering or due for a correction, Hallador may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 7th of March 2021, we believe that at this point, Hallador Energy is undervalued with below average odds of financial distress within the next 2 years. Our concluding buy-hold-sell advice on the firm is Hold.

About Contributor

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 Raphi Shpitalnik do not own shares of Hallador Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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