PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD
Overall BTU gets a fundamental rating of 5 out of 10. We evaluated BTU against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While BTU has a great health rating, its profitability is only average at the moment. BTU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BTU was profitable.
BTU had a positive operating cash flow in the past year.
BTU had positive earnings in 4 of the past 5 years.
Of the past 5 years BTU 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.23%, BTU is doing good in the industry, outperforming 61.43% of the companies in the same industry.
With a Return On Equity value of 10.16%, BTU perfoms like the industry average, outperforming 50.95% of the companies in the same industry.
BTU's Return On Invested Capital of 4.86% is on the low side compared to the rest of the industry. BTU is outperformed by 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BTU is significantly below the industry average of 27.47%.
The 3 year average ROIC (13.63%) for BTU is well above the current ROIC(4.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 10.16% | ||
| ROIC | 4.86% |
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
BTU has a Profit Margin (8.75%) which is in line with its industry peers.
BTU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.76%, BTU is doing worse than 67.62% of the companies in the same industry.
BTU's Operating Margin has improved in the last couple of years.
The Gross Margin of BTU (19.25%) is worse than 66.67% of its industry peers.
BTU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 8.75% | ||
| GM | 19.25% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTU is creating some value.
Compared to 1 year ago, BTU has less shares outstanding
BTU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BTU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that BTU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.82, BTU is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
The Debt to FCF ratio of BTU is 1.70, which is an excellent value as it means it would take BTU, only 1.70 years of fcf income to pay off all of its debts.
BTU has a Debt to FCF ratio of 1.70. This is amongst the best in the industry. BTU outperforms 82.86% of its industry peers.
BTU has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BTU (0.09) is better than 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.61
WACC8.01%
2.3 Liquidity
A Current Ratio of 2.15 indicates that BTU has no problem at all paying its short term obligations.
BTU has a Current ratio of 2.15. This is in the better half of the industry: BTU outperforms 76.67% of its industry peers.
A Quick Ratio of 1.68 indicates that BTU should not have too much problems paying its short term obligations.
The Quick ratio of BTU (1.68) is better than 72.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
BTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.83%.
The Earnings Per Share has been decreasing by -8.71% on average over the past years.
BTU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.35%.
Measured over the past years, BTU shows a decrease in Revenue. The Revenue has been decreasing by -1.73% on average per year.
EPS 1Y (TTM)-57.83%
EPS 3Y-8.71%
EPS 5YN/A
EPS Q2Q%-77.44%
Revenue 1Y (TTM)-14.35%
Revenue growth 3Y8.49%
Revenue growth 5Y-1.73%
Sales Q2Q%-9.06%
3.2 Future
Based on estimates for the next years, BTU will show a small growth in Earnings Per Share. The EPS will grow by 5.12% on average per year.
BTU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.40% yearly.
EPS Next Y-33.51%
EPS Next 2Y17.03%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year-4.15%
Revenue Next 2Y3.59%
Revenue Next 3Y1.4%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.94 indicates a rather cheap valuation of BTU.
83.81% of the companies in the same industry are more expensive than BTU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. BTU is valued rather cheaply when compared to this.
BTU is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
Based on the Price/Forward Earnings ratio, BTU is valued a bit cheaper than 68.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BTU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
96.67% of the companies in the same industry are more expensive than BTU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BTU is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.39 | ||
| EV/EBITDA | 1.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.03%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, BTU has a reasonable but not impressive dividend return.
In the last 3 months the price of BTU has falen by -44.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BTU's Dividend Yield is slightly below the industry average, which is at 7.06.
Compared to an average S&P500 Dividend Yield of 2.33, BTU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
BTU has been paying a dividend for over 5 years, so it has already some track record.
The dividend of BTU decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
10.14% of the earnings are spent on dividend by BTU. This is a low number and sustainable payout ratio.
DP10.14%
EPS Next 2Y17.03%
EPS Next 3Y5.12%
12.48
-0.38 (-2.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.47%
Inst Owner Change-5.59%
Ins Owners0.53%
Ins Owner Change-0.1%
Market Cap1.52B
Analysts80
Price Target24.48 (96.15%)
Short Float %9.56%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP10.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.42%
Min EPS beat(2)-30.03%
Max EPS beat(2)25.19%
EPS beat(4)2
Avg EPS beat(4)3.39%
Min EPS beat(4)-30.03%
Max EPS beat(4)25.56%
EPS beat(8)3
Avg EPS beat(8)-3.02%
EPS beat(12)5
Avg EPS beat(12)-6.78%
EPS beat(16)8
Avg EPS beat(16)-5.19%
Revenue beat(2)2
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0.55%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)1.86%
Revenue beat(8)4
Avg Revenue beat(8)0.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.97%
Revenue beat(16)8
Avg Revenue beat(16)-1.06%
PT rev (1m)-13.04%
PT rev (3m)-18.37%
EPS NQ rev (1m)-39.69%
EPS NQ rev (3m)-68.06%
EPS NY rev (1m)-34.83%
EPS NY rev (3m)-48.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.31%
Revenue NY rev (3m)-4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 8.94 | ||
| P/S | 0.36 | ||
| P/FCF | 7.39 | ||
| P/OCF | 2.5 | ||
| P/B | 0.42 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 1.73 |
EPS(TTM)2.1
EY16.83%
EPS(NY)1.4
Fwd EY11.19%
FCF(TTM)1.69
FCFY13.53%
OCF(TTM)4.99
OCFY39.98%
SpS34.85
BVpS30.03
TBVpS30.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 10.16% | ||
| ROCE | 6.41% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 5.63% | ||
| OM | 7.76% | ||
| PM (TTM) | 8.75% | ||
| GM | 19.25% | ||
| FCFM | 4.84% |
ROA(3y)14.03%
ROA(5y)1.86%
ROE(3y)23.91%
ROE(5y)-21.79%
ROIC(3y)13.63%
ROIC(5y)N/A
ROICexc(3y)17.74%
ROICexc(5y)N/A
ROICexgc(3y)17.74%
ROICexgc(5y)N/A
ROCE(3y)17.99%
ROCE(5y)N/A
ROICexcg growth 3Y-11.04%
ROICexcg growth 5Y4.87%
ROICexc growth 3Y-11.04%
ROICexc growth 5Y4.96%
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%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 117% | ||
| Cap/Sales | 9.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.28% | ||
| Profit Quality | 55.32% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.82 |
F-Score5
WACC8.01%
ROIC/WACC0.61
Cap/Depr(3y)98.37%
Cap/Depr(5y)81.95%
Cap/Sales(3y)6.99%
Cap/Sales(5y)6.62%
Profit Quality(3y)73.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.83%
EPS 3Y-8.71%
EPS 5YN/A
EPS Q2Q%-77.44%
EPS Next Y-33.51%
EPS Next 2Y17.03%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.35%
Revenue growth 3Y8.49%
Revenue growth 5Y-1.73%
Sales Q2Q%-9.06%
Revenue Next Year-4.15%
Revenue Next 2Y3.59%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
EBIT growth 1Y-68.93%
EBIT growth 3Y0.23%
EBIT growth 5Y3.11%
EBIT Next Year72.04%
EBIT Next 3Y33.29%
EBIT Next 5Y29.29%
FCF growth 1Y-70.14%
FCF growth 3Y-4.68%
FCF growth 5Y-12.14%
OCF growth 1Y-41.43%
OCF growth 3Y13.03%
OCF growth 5Y-2.19%