Hallador Energy Company Common Stock (HNRG)

FairStock Score: 67/100 — STEADY

Key Financials

Strengths

• High return on equity of 31.7% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.24, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($9) with negative 83% margin of safety—limited downside protection

AI Analysis

Hallador Energy Company Common Stock is a micro-cap energy company valued at $765 million. Revenue stands at $469 million. From a quality standpoint, Hallador shows Altman Z-Score of 1.9 in the grey zone and strong 32% ROE. On valuation, the stock is reasonably priced at 16.6x earnings, with trades above its Graham Number with a negative 83% margin. Growth dynamics show revenue growing at 8.2% and profit growth of 99.9%. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer