PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BTU - US7045511000 - Common Stock
36.13 USD
+0.95 (+2.7%)
36.4824 USD
+0.35 (+0.98%)
Taking everything into account, BTU scores 3 out of 10 in our fundamental rating. BTU was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of BTU is average, but there are quite some concerns on its profitability. BTU has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- BTU had negative earnings in the past year.
- BTU had a positive operating cash flow in the past year.
- Of the past 5 years BTU 4 years were profitable.
- Of the past 5 years BTU 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BTU (-0.57%) is worse than 69.57% of its industry peers.
- BTU has a Return On Equity of -0.92%. This is in the lower half of the industry: BTU underperforms 68.12% of its industry peers.
- With a Return On Invested Capital value of 0.14%, BTU is not doing good in the industry: 72.95% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for BTU is significantly below the industry average of 21.94%.
- The 3 year average ROIC (13.63%) for BTU is well above the current ROIC(0.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -0.92% | ||
| ROIC | 0.14% |
ROA(3y)14.03%
ROA(5y)1.86%
ROE(3y)23.91%
ROE(5y)-21.79%
ROIC(3y)13.63%
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Profit Margin of BTU has declined.
- BTU's Operating Margin of 0.23% is on the low side compared to the rest of the industry. BTU is outperformed by 73.91% of its industry peers.
- In the last couple of years the Operating Margin of BTU has grown nicely.
- BTU has a worse Gross Margin (13.70%) than 68.12% of its industry peers.
- In the last couple of years the Gross Margin of BTU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.23% | ||
| PM (TTM) | N/A | ||
| GM | 13.7% |
OM growth 3Y-7.61%
OM growth 5Y4.93%
PM growth 3Y-6.91%
PM growth 5YN/A
GM growth 3Y-5.83%
GM growth 5Y-3.91%
2. Health
2.1 Basic Checks
- BTU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BTU has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BTU has more shares outstanding
- BTU has a worse debt/assets ratio than last year.
2.2 Solvency
- BTU has an Altman-Z score of 2.36. This is not the best score and indicates that BTU is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.36, BTU is in the better half of the industry, outperforming 70.05% of the companies in the same industry.
- A Debt/Equity ratio of 0.09 indicates that BTU is not too dependend on debt financing.
- The Debt to Equity ratio of BTU (0.09) is better than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.36 |
ROIC/WACC0.02
WACC8.53%
2.3 Liquidity
- BTU has a Current Ratio of 1.99. This is a normal value and indicates that BTU is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.99, BTU is doing good in the industry, outperforming 77.29% of the companies in the same industry.
- A Quick Ratio of 1.49 indicates that BTU should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.49, BTU is in the better half of the industry, outperforming 71.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- The earnings per share for BTU have decreased strongly by -101.92% in the last year.
- BTU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.71% yearly.
- The Revenue has decreased by -8.88% in the past year.
- BTU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
EPS 1Y (TTM)-101.92%
EPS 3Y-8.71%
EPS 5YN/A
EPS Q2Q%-178.38%
Revenue 1Y (TTM)-8.88%
Revenue growth 3Y8.49%
Revenue growth 5Y-1.73%
Sales Q2Q%-6.98%
3.2 Future
- Based on estimates for the next years, BTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
- Based on estimates for the next years, BTU will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y-123.41%
EPS Next 2Y10.52%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year-8.72%
Revenue Next 2Y4.54%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for BTU. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 14.09, which indicates a correct valuation of BTU.
- BTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BTU is cheaper than 61.84% of the companies in the same industry.
- BTU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
- BTU's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.52%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
- BTU has a yearly dividend return of 0.78%, which is pretty low.
- BTU's Dividend Yield is slightly below the industry average, which is at 3.73.
- Compared to an average S&P500 Dividend Yield of 1.82, BTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
- BTU has been paying a dividend for over 5 years, so it has already some track record.
- BTU has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- BTU has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-111.93%
EPS Next 2Y10.52%
EPS Next 3Y10.93%
PEABODY ENERGY CORP / BTU FAQ
Can you provide the ChartMill fundamental rating for PEABODY ENERGY CORP?
ChartMill assigns a fundamental rating of 3 / 10 to BTU.
Can you provide the valuation status for PEABODY ENERGY CORP?
ChartMill assigns a valuation rating of 2 / 10 to PEABODY ENERGY CORP (BTU). This can be considered as Overvalued.
Can you provide the profitability details for PEABODY ENERGY CORP?
PEABODY ENERGY CORP (BTU) has a profitability rating of 2 / 10.
Can you provide the financial health for BTU stock?
The financial health rating of PEABODY ENERGY CORP (BTU) is 4 / 10.
Is the dividend of PEABODY ENERGY CORP sustainable?
The dividend rating of PEABODY ENERGY CORP (BTU) is 1 / 10 and the dividend payout ratio is -111.93%.