Ramaco Resources Inc. 8.375% Senior Notes due 2029 (METCZ)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Ramaco Resources through the lens of a lender as much as an owner, because the security in question is an 8.375% senior note due 2029. The business mines metallurgical coal, a commodity with no obvious moat in the filed figures. Revenue has weakened: FY2023 was $693.5M, FY2024 $666.3M, and FY2025 $536.6M. Profitability has collapsed: net income was $82.3M in FY2023, $11.2M in FY2024, and -$51.4M in FY2025. More recently, fiscal Q1 2026, quarter ended 2026-03-31, lost $18.3M, and fiscal Q2 2026, quarter ended 2026-06-30, lost $15.4M on $144.8M of revenue. Those are not the marks of a stable credit. FairStock's issuer calculations show P/B 4.26, ROE -17.07%, ROCE -5.34%, and D/E 1.25; the FairStock Score is 35/100. The Lynch category is TURNAROUND — loss in the latest year after earlier profits. The note price at the 2026-10-13 close was $25.15, near the top of its 52-week range of $24.83-$25.90. So the market is not demanding a distressed price today, but the coupon compensates for real commodity and credit risk. Graham would ask whether fixed charges are covered; recent losses suggest weak coverage. Buffett would ask whether the business has durable economics; coal price swings argue no. The 2029 maturity and refinancing risk are the key tests. At this price, I see little margin of safety if losses persist.

In plain English: Ramaco Resources mines metallurgical coal, which is used to make steel. The company made money in 2023 and 2024 but lost money in 2025 and kept losing money in early 2026, while sales have fallen. Its 8.375% note due 2029 trades near $25.15, so the market looks calm about repayment, but the recent business numbers are weak.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer