The following is from Nasdaq.com/asp/guruanalysis.asp. It uses Peter Lynch's analysis from the famous Lynch investing book. HCC, as of 9/18/09, scored 91%. Also, HCC had an impressive ability to, and executive humility and wisdom to, increase its dividend during a recession.

Guru Score: 91%
DETERMINE THE CLASSIFICATION:

HCC is considered a "True Stalwart", according to this methodology, as its earnings growth of 15.90% lies within a moderate 10%-19% range and its annual sales of $2,300 million are greater than the multi billion dollar level.This methodology looks for the "Stalwart" securities to gain 30%-50% in value over a two year period if they can be purchased at an attractive price based on the P/E to Growth ratio. HCC is attractive if HCC can hold its own during a recession.


YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: [PASS]

The Yield-adjusted P/E/G ratio for HCC (0.58), based on the average of the 3, 4 and 5 year historical eps growth rates, is O.K.


EARNINGS PER SHARE: [PASS]

The EPS for a stalwart company must be positive. HCC's EPS ($2.69) would satisfy this criterion.


TOTAL DEBT/EQUITY RATIO: [NEUTRAL]

HCC is a financial company so debt to equity rules are not applied to determine the company's financial soundness.


EQUITY/ASSETS RATIO: [PASS]

This methodology uses the Equity/Assets Ratio as a way to determine a financial intermediary's health, as it is a better measure than the Debt/Equity Ratio. HCC's Equity/Assets ratio (32.00%) is extremely healthy and above the minimum 5% this methodology looks for, thus passing the criterion.


RETURN ON ASSETS: [PASS]

This methodology uses Return on Assets as a way to measure a financial intermediary's profitability. HCC's ROA (3.56%) is above the minimum 1% that this methodology looks for, thus passing the criterion.