Is Ramaco Resources, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Ramaco Resources, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, particularly given its negative return on equity (ROE) of -0.08% and a price-to-book value of 1.43. Additionally, the enterprise value to EBITDA ratio stands at 8.14, which, while not excessively high, does not support a strong valuation given the company's losses.
In comparison with peers, Ramaco Resources has a substantially lower valuation profile than CONSOL Energy, Inc., which has a P/E ratio of 48.73, and Warrior Met Coal, Inc., with a P/E of 80.44. The stark contrast in these ratios highlights the challenges Ramaco faces in justifying its current price. Furthermore, the company's impressive stock returns, such as a 224.74% year-to-date return compared to the S&P 500's 12.22%, may not be sustainable given its underlying financial metrics.