PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD
BTU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. BTU has an excellent financial health rating, but there are some minor concerns on its profitability. BTU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BTU was profitable.
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 (6.23%) is better than 64.62% of its industry peers.
BTU's Return On Equity of 10.16% is in line compared to the rest of the industry. BTU outperforms 55.19% of its industry peers.
With a Return On Invested Capital value of 4.86%, BTU perfoms like the industry average, outperforming 40.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BTU is significantly below the industry average of 27.42%.
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
The Profit Margin of BTU (8.75%) is comparable to the rest of the industry.
BTU's Profit Margin has declined in the last couple of years.
BTU has a worse Operating Margin (7.76%) than 66.04% of its industry peers.
BTU's Operating Margin has improved in the last couple of years.
BTU's Gross Margin of 19.25% is on the low side compared to the rest of the industry. BTU is outperformed by 67.45% 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.
BTU has less shares outstanding than it did 1 year ago.
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 1.83 indicates that BTU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BTU (1.83) is better than 64.62% of its industry peers.
BTU has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.70, BTU belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
BTU has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.09, BTU is doing good in the industry, outperforming 79.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.49
WACC9.98%
2.3 Liquidity
A Current Ratio of 2.15 indicates that BTU has no problem at all paying its short term obligations.
BTU's Current ratio of 2.15 is fine compared to the rest of the industry. BTU outperforms 77.83% of its industry peers.
BTU has a Quick Ratio of 1.68. This is a normal value and indicates that BTU is financially healthy and should not expect problems in meeting its short term obligations.
BTU has a Quick ratio of 1.68. This is in the better half of the industry: BTU outperforms 73.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The earnings per share for BTU have decreased strongly by -57.83% in the last year.
The Earnings Per Share has been decreasing by -8.71% on average over the past years.
The Revenue for BTU has decreased by -14.35% in the past year. This is quite bad
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
BTU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.12% yearly.
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y-33.51%
EPS Next 2Y17.03%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year-7.67%
Revenue Next 2Y2.94%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 6.11 indicates a rather cheap valuation of BTU.
Based on the Price/Earnings ratio, BTU is valued cheaply inside the industry as 82.55% of the companies are valued more expensively.
BTU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
BTU is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
Based on the Price/Forward Earnings ratio, BTU is valued a bit cheaper than 68.40% of the companies in the same industry.
BTU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTU is valued cheaply inside the industry as 97.17% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BTU is valued a bit cheaper than the industry average as 78.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.61 | ||
| EV/EBITDA | 1.8 |
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 2.67%, BTU has a reasonable but not impressive dividend return.
The stock price of BTU dropped by -33.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BTU's Dividend Yield is comparable with the industry average which is at 7.82.
BTU's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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 pays out 10.14% of its income as dividend. This is a sustainable payout ratio.
DP10.14%
EPS Next 2Y17.03%
EPS Next 3Y5.12%
12.84
+0.61 (+4.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.47%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change-0.09%
Market Cap1.56B
Analysts80
Price Target24.48 (90.65%)
Short Float %12.25%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)0%
PT rev (3m)-18.37%
EPS NQ rev (1m)-49.16%
EPS NQ rev (3m)-83.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-47.87%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.67%
Revenue NY rev (3m)-7.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.37 | ||
| P/FCF | 7.61 | ||
| P/OCF | 2.57 | ||
| P/B | 0.43 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 1.8 |
EPS(TTM)2.1
EY16.36%
EPS(NY)1.4
Fwd EY10.87%
FCF(TTM)1.69
FCFY13.15%
OCF(TTM)4.99
OCFY38.85%
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 | 1.83 |
F-Score5
WACC9.98%
ROIC/WACC0.49
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-7.67%
Revenue Next 2Y2.94%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
EBIT growth 1Y-68.93%
EBIT growth 3Y0.23%
EBIT growth 5Y3.11%
EBIT Next Year19.14%
EBIT Next 3Y23.64%
EBIT Next 5Y25.15%
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%