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 does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year BTU has reported negative net income.
BTU had a positive operating cash flow in the past year.
Of the past 5 years BTU 4 years were profitable.
BTU had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

BTU has a worse Return On Assets (-0.57%) 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.
Looking at the Return On Invested Capital, with a value of 0.14%, BTU is doing worse than 72.95% 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 21.94%.
The last Return On Invested Capital (0.14%) for BTU is well below the 3 year average (13.63%), which needs to be investigated, but indicates that BTU had better years and this may not be a problem.

		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

BTU's Profit Margin has declined in the last couple of years.
The Operating Margin of BTU (0.23%) is worse than 73.91% of its industry peers.
In the last couple of years the Operating Margin of BTU has grown nicely.
With a Gross Margin value of 13.70%, BTU is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
BTU's Gross Margin has declined in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for BTU has been reduced compared to 1 year ago.
Compared to 5 years ago, BTU has more shares outstanding
Compared to 1 year ago, BTU has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.36 indicates that BTU is not a great score, but indicates only limited risk for bankruptcy at the moment.
BTU has a Altman-Z score of 2.36. This is in the better half of the industry: BTU outperforms 70.53% 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.
Looking at the Debt to Equity ratio, with a value of 0.09, BTU is in the better half of the industry, outperforming 78.26% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.09
Debt/FCF	N/A
Altman-Z	2.36

ROIC/WACC0.02

WACC8.52%

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.
BTU has a Quick Ratio of 1.49. This is a normal value and indicates that BTU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BTU (1.49) is better than 71.50% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.99
Quick Ratio	1.49

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
Looking at the last year, BTU shows a decrease in Revenue. The Revenue has decreased by -8.88% in the last 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.

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4. Valuation

4.1 Price/Earnings Ratio

BTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 13.75 indicates a correct valuation of BTU.
62.32% of the companies in the same industry are more expensive than BTU, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BTU to the average of the S&P500 Index (25.57), we can say BTU is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	13.75

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTU is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.3

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y10.52%

EPS Next 3Y10.93%

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5. Dividend

5.1 Amount

BTU has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 3.64, BTU is paying slightly less dividend.
With a Dividend Yield of 0.83, BTU pays less dividend than the S&P500 average, which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	0.83%

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%

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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%.