PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BTU. BTU was compared to 211 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BTU was profitable.
In the past year BTU had a positive cash flow from operations.
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 6.32%, BTU is doing good in the industry, outperforming 68.25% of the companies in the same industry.
The Return On Equity of BTU (9.97%) is comparable to the rest of the industry.
BTU has a Return On Invested Capital of 4.53%. This is in the lower half of the industry: BTU underperforms 62.09% 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 23.79%.
The last Return On Invested Capital (4.53%) 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 | 6.32% | ||
| ROE | 9.97% | ||
| ROIC | 4.53% |
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 (8.73%) which is in line with its industry peers.
BTU's Profit Margin has declined in the last couple of years.
BTU's Operating Margin of 7.24% is on the low side compared to the rest of the industry. BTU is outperformed by 64.45% of its industry peers.
BTU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.16%, BTU is doing worse than 66.82% of the companies in the same industry.
In the last couple of years the Gross Margin of BTU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 8.73% | ||
| GM | 19.16% |
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
Compared to 5 years ago, BTU has more shares outstanding
The debt/assets ratio for BTU is higher compared to a year ago.
2.2 Solvency
BTU has an Altman-Z score of 1.97. 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.
The Altman-Z score of BTU (1.97) is better than 65.40% of its industry peers.
BTU has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.76, BTU belongs to the best of the industry, outperforming 84.83% 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.
BTU has a better Debt to Equity ratio (0.09) than 77.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.5
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.36 indicates that BTU has no problem at all paying its short term obligations.
BTU's Current ratio of 2.36 is amongst the best of the industry. BTU outperforms 81.52% of its industry peers.
BTU has a Quick Ratio of 1.77. This is a normal value and indicates that BTU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.77, BTU is in the better half of the industry, outperforming 77.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for BTU have decreased strongly by -41.50% 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 -8.24% 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)-41.5%
EPS 3Y-8.71%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y8.49%
Revenue growth 5Y-1.73%
Sales Q2Q%-4.74%
3.2 Future
BTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.41% yearly.
BTU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y-73.19%
EPS Next 2Y22.89%
EPS Next 3Y13.41%
EPS Next 5YN/A
Revenue Next Year-8.79%
Revenue Next 2Y3.73%
Revenue Next 3Y2.4%
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
The Price/Earnings ratio is 7.26, which indicates a rather cheap valuation of BTU.
Compared to the rest of the industry, the Price/Earnings ratio of BTU indicates a rather cheap valuation: BTU is cheaper than 83.41% of the companies listed in the same industry.
BTU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 4.81, the valuation of BTU can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTU indicates a rather cheap valuation: BTU is cheaper than 92.89% of the companies listed in the same industry.
BTU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 4.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTU indicates a rather cheap valuation: BTU is cheaper than 93.84% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BTU is valued a bit cheaper than the industry average as 79.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.41 | ||
| EV/EBITDA | 2.21 |
4.3 Compensation for Growth
BTU's earnings are expected to grow with 13.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.89%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, BTU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.51, BTU is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, BTU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
10.12% of the earnings are spent on dividend by BTU. This is a low number and sustainable payout ratio.
DP10.12%
EPS Next 2Y22.89%
EPS Next 3Y13.41%
15.25
+0.41 (+2.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0%
Ins Owners0.65%
Ins Owner Change0.51%
Market Cap1.85B
Analysts82.22
Price Target19.48 (27.74%)
Short Float %12.16%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP10.12%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)248.79%
Min EPS beat(2)-30.03%
Max EPS beat(2)527.6%
EPS beat(4)3
Avg EPS beat(4)137.08%
Min EPS beat(4)-30.03%
Max EPS beat(4)527.6%
EPS beat(8)3
Avg EPS beat(8)60.46%
EPS beat(12)6
Avg EPS beat(12)48.92%
EPS beat(16)8
Avg EPS beat(16)25.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)0.55%
Revenue beat(4)3
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)2.02%
Revenue beat(16)8
Avg Revenue beat(16)-1%
PT rev (1m)-7.95%
PT rev (3m)-20.42%
EPS NQ rev (1m)16.67%
EPS NQ rev (3m)-104.08%
EPS NY rev (1m)7.9%
EPS NY rev (3m)-59.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 4.81 | ||
| P/S | 0.44 | ||
| P/FCF | 9.41 | ||
| P/OCF | 3.05 | ||
| P/B | 0.51 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 2.21 |
EPS(TTM)2.1
EY13.77%
EPS(NY)3.17
Fwd EY20.8%
FCF(TTM)1.62
FCFY10.63%
OCF(TTM)5
OCFY32.75%
SpS34.46
BVpS30.16
TBVpS30.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.97% | ||
| ROCE | 5.98% | ||
| ROIC | 4.53% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 5.25% | ||
| OM | 7.24% | ||
| PM (TTM) | 8.73% | ||
| GM | 19.16% | ||
| FCFM | 4.7% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 115.48% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 53.9% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 1.97 |
F-Score5
WACC8.98%
ROIC/WACC0.5
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)-41.5%
EPS 3Y-8.71%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-73.19%
EPS Next 2Y22.89%
EPS Next 3Y13.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y8.49%
Revenue growth 5Y-1.73%
Sales Q2Q%-4.74%
Revenue Next Year-8.79%
Revenue Next 2Y3.73%
Revenue Next 3Y2.4%
Revenue Next 5YN/A
EBIT growth 1Y-57.5%
EBIT growth 3Y0.23%
EBIT growth 5Y3.11%
EBIT Next Year-4.01%
EBIT Next 3Y20.04%
EBIT Next 5Y10.14%
FCF growth 1Y-87.57%
FCF growth 3Y-4.68%
FCF growth 5Y-12.14%
OCF growth 1Y-66.87%
OCF growth 3Y13.03%
OCF growth 5Y-2.19%