Hallador Energy Company (HNRG) AI Stock Analysis
HNRG AI stock analysis summary
AI ResearchHallador Energy Company (HNRG) is an Indiana-based independent power producer and steam coal mining operator. In FY2025, the company delivered revenue growth of 16.1% to $469.5M, generating net income of $41.9M. However, trailing twelve-month performance through June 30, 2026, reflects an operating margin of -12.5% on revenue of $454.9M.
- Market cap
- $552.0M
- Revenue (TTM)
- $454.9M
- P/E
- 585.5x fwd 17.1x
- 1Y return
- -44.0% S&P 500 16.8%
- Avg. target
- $28.00 139.1% vs last close
Bull case
- In FY2025, Hallador generated $81.1M in operating cash flow and $11.9M in free cash flow, rebounding to net income of $41.9M.
- Wall Street analysts maintain 3 Strong Buy recommendations with an average price target of $28.00, indicating 139.1% potential upside.
- The stock trades at a price-to-sales multiple of 1.2x, below the US-listed Utilities peer median of 2.4x.
Bear case
- HNRG shares fell 44.0% over the trailing one-year period, trailing the S&P 500 return of 16.8%.
- Short-term liquidity appears tight, evidenced by a current ratio of 0.72 as of June 30, 2026.
- Analysts project full-year FY2026 earnings to drop to -$0.35 per share, representing an expected 135.4% earnings contraction.
What Hallador Energy does
Hallador Energy Company, along with its subsidiaries, specializes in the production of steam coal primarily for the electric power generation industry within the state of Indiana. Founded in 1949 and headquartered in Terre Haute, Indiana, the company operates underground facilities including Oaktown Mine 1 and Oaktown Mine 2 in Oaktown, Indiana, alongside the Ace in the Hole mine near Clay City, Indiana. In addition to its core coal mining assets that support regional electric utilities, Hallador engages in gas exploration across Indiana to expand its footprint and leverage local resources within the broader energy sector.
Growth and profitability
Hallador Energy experienced notable top-line volatility from FY2021 through FY2025, posting a five-year revenue CAGR of 14.0%. Revenue increased 46.2% to $362.0M in FY2022 and 75.4% to $634.9M in FY2023, when net income reached $44.8M. In FY2024, revenue fell 36.3% to $404.4M, resulting in an operating margin of -53.9% and a net loss of -$226.1M. The company rebounded in FY2025 as revenue rose 16.1% to $469.5M, operating margin reached 13.0%, and net income totaled $41.9M. For the latest quarter ended June 30, 2026, revenue fell 1.3% year-over-year, while quarterly earnings grew 1407.7%.
Balance sheet and cash flow
As of June 30, 2026, Hallador Energy held $29.0M in cash and short-term investments against total debt of $46.8M, yielding net debt of $17.8M. Shareholders' equity stood at $190.3M against total assets of $468.0M, with a debt-to-equity ratio of 0.25 and a current ratio of 0.72. For FY2025, operating cash flow was $81.1M, which funded capital expenditures of $69.2M and yielded free cash flow of $11.9M. Over the past five years, the company's share count increased 54.0%.
Valuation and performance
At $11.71 per share, Hallador Energy carries a market capitalization of $552.0M and an enterprise value of $703.0M. The stock trades at a forward P/E of 17.1x, near the 17.2x median of its US-listed Utilities peers, while its trailing P/E is 585.5x compared to the peer median of 20.6x. Its EV/EBITDA of 12.5x aligns closely with the peer median of 12.1x, and its price-to-sales of 1.2x is lower than the peer median of 2.4x. Over the past year, HNRG fell 44.0%, while the S&P 500 gained 16.8%.
What analysts expect
Consensus coverage includes 3 Strong Buy ratings and zero Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $28.00, representing 139.1% upside compared to the last close of $11.71. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$0.35 on revenue of $446.6M. For the subsequent fiscal year, 3 analysts forecast revenue of $475.9M and an EPS of $0.22. Hallador beat EPS estimates in 2 of the trailing 4 quarters, with its next earnings report set for November 9, 2026.
Key risks and what to watch
- The company's current ratio of 0.72 indicates that current liabilities exceed liquid assets as of June 30, 2026.
- Trailing twelve-month operating margin stands at -12.5%, reflecting sensitivity to operating cost fluctuations and commodity market swings.
- Shareholder dilution has been substantial, with the total share count increasing by 54.0% over a five-year period.
- Short interest represents 10.4% of the float, highlighting significant market positioning against the stock.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this HNRG AI stock analysis
This page is an AI-written research summary of Hallador Energy Company (HNRG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: HNRG income statement, HNRG balance sheet, HNRG key metrics, HNRG analyst forecast, HNRG chart. See the HNRG stock overview for the latest quote and news.
HNRG AI stock analysis FAQ
What does Hallador Energy Company do?
Hallador Energy Company produces steam coal for the electric power generation industry in Indiana via its Oaktown Mine 1, Oaktown Mine 2, and Ace in the Hole facilities. The company also engages in gas exploration projects across the state.
Does Hallador Energy pay a dividend?
Hallador Energy does not pay a regular dividend. The company utilized cash flow to fund $69.2M in capital expenditures during FY2025.
How is HNRG valued relative to utility peers?
HNRG trades at a forward P/E of 17.1x, comparable to the US-listed Utilities peer median of 17.2x. Its price-to-sales of 1.2x sits below the peer median of 2.4x, while EV/EBITDA of 12.5x is slightly above the peer median of 12.1x.
What do analysts expect for Hallador's future financial results?
Analysts forecast FY2026 revenue of $446.6M with an EPS of -$0.35, followed by a projected recovery to $475.9M in revenue and $0.22 in EPS in FY2027. The 3 covering analysts maintain Strong Buy ratings with a mean price target of $28.00.