PEABODY ENERGY CORP (BTU)
US7045511000 - Common Stock
We assign a fundamental rating of 5 out of 10 to BTU. BTU was compared to 205 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 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.
In multiple years BTU reported negative net income over the last 5 years.
BTU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BTU has a Return On Assets of 9.07%. This is in the better half of the industry: BTU outperforms 73.04% of its industry peers.
BTU has a Return On Equity of 14.63%. This is in the better half of the industry: BTU outperforms 60.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.73%, BTU is in line with its industry, outperforming 53.43% 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 29.02%.
The last Return On Invested Capital (7.73%) for BTU is well below the 3 year average (13.45%), which needs to be investigated, but indicates that BTU had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 14.63% | ||
| ROIC | 7.73% |
ROA(3y)14.38%
ROA(5y)-0.03%
ROE(3y)27.33%
ROE(5y)-25.44%
ROIC(3y)13.45%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 12.24%, BTU perfoms like the industry average, outperforming 47.55% of the companies in the same industry.
In the last couple of years the Profit Margin of BTU has grown nicely.
The Operating Margin of BTU (12.46%) is worse than 63.24% 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 23.26%, BTU is doing worse than 66.18% of the companies in the same industry.
In the last couple of years the Gross Margin of BTU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.46% | ||
| PM (TTM) | 12.24% | ||
| GM | 23.26% |
OM growth 3YN/A
OM growth 5Y14.04%
PM growth 3YN/A
PM growth 5Y9.84%
GM growth 3Y36.68%
GM growth 5Y3.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BTU is still 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 better debt/assets ratio than last year.
2.2 Solvency
BTU has an Altman-Z score of 2.27. 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.
BTU's Altman-Z score of 2.27 is fine compared to the rest of the industry. BTU outperforms 67.65% of its industry peers.
The Debt to FCF ratio of BTU is 0.98, which is an excellent value as it means it would take BTU, only 0.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BTU (0.98) is better than 87.75% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that BTU is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, BTU is doing good in the industry, outperforming 78.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.9
WACC8.55%
2.3 Liquidity
A Current Ratio of 2.32 indicates that BTU has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.32, BTU is doing good in the industry, outperforming 77.45% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that BTU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.75, BTU is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
BTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.65%.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
BTU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.53%.
BTU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.39% yearly.
EPS 1Y (TTM)-58.65%
EPS 3YN/A
EPS 5Y7.81%
EPS Q2Q%-9.76%
Revenue 1Y (TTM)-18.53%
Revenue growth 3Y19.74%
Revenue growth 5Y-2.39%
Sales Q2Q%0.84%
3.2 Future
Based on estimates for the next years, BTU will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.45% on average per year.
The Revenue is expected to decrease by -2.93% on average over the next years.
EPS Next Y-41.54%
EPS Next 2Y-26.66%
EPS Next 3Y-14.45%
EPS Next 5YN/A
Revenue Next Year-13.78%
Revenue Next 2Y-7.45%
Revenue Next 3Y-2.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.59, which indicates a rather cheap valuation of BTU.
BTU's Price/Earnings ratio is a bit cheaper when compared to the industry. BTU is cheaper than 77.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, BTU is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.70, the valuation of BTU can be described as very cheap.
Based on the Price/Forward Earnings ratio, BTU is valued a bit cheaper than 71.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BTU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
93.14% 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 75.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.25 | ||
| EV/EBITDA | 2.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as BTU's earnings are expected to decrease with -14.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-26.66%
EPS Next 3Y-14.45%
5. Dividend
5.1 Amount
BTU has a Yearly Dividend Yield of 1.39%.
BTU's Dividend Yield is slightly below the industry average, which is at 7.08.
Compared to an average S&P500 Dividend Yield of 2.34, BTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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
BTU pays out 11.10% of its income as dividend. This is a sustainable payout ratio.
DP11.1%
EPS Next 2Y-26.66%
EPS Next 3Y-14.45%
PEABODY ENERGY CORP
NYSE:BTU (12/20/2024, 7:58:35 PM)
After market: 20.77 +0.14 (+0.68%)20.63
-0.92 (-4.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.6%
Inst Owner Change8.12%
Ins Owners0.47%
Ins Owner Change-0.06%
Market Cap2.51B
Analysts77.78
Price Target29.99 (45.37%)
Short Float %10.63%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Dividend Growth(5Y)N/A
DP11.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.37%
Min EPS beat(2)25.19%
Max EPS beat(2)25.56%
EPS beat(4)2
Avg EPS beat(4)9.37%
Min EPS beat(4)-7.15%
Max EPS beat(4)25.56%
EPS beat(8)4
Avg EPS beat(8)10.72%
EPS beat(12)6
Avg EPS beat(12)15.68%
EPS beat(16)8
Avg EPS beat(16)-12.55%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.12%
Max Revenue beat(2)1.86%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)1.86%
Revenue beat(8)4
Avg Revenue beat(8)2.72%
Revenue beat(12)6
Avg Revenue beat(12)0.35%
Revenue beat(16)8
Avg Revenue beat(16)-0.89%
PT rev (1m)1.38%
PT rev (3m)5.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.08%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-7.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.58 | ||
| P/FCF | 7.25 | ||
| P/OCF | 3.26 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 2.38 |
EPS(TTM)3.13
EY15.17%
EPS(NY)2.68
Fwd EY12.98%
FCF(TTM)2.84
FCFY13.78%
OCF(TTM)6.33
OCFY30.68%
SpS35.79
BVpS29.95
TBVpS29.95
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 14.63% | ||
| ROCE | 10.65% | ||
| ROIC | 7.73% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 9.11% | ||
| OM | 12.46% | ||
| PM (TTM) | 12.24% | ||
| GM | 23.26% | ||
| FCFM | 7.95% |
ROA(3y)14.38%
ROA(5y)-0.03%
ROE(3y)27.33%
ROE(5y)-25.44%
ROIC(3y)13.45%
ROIC(5y)N/A
ROICexc(3y)17.75%
ROICexc(5y)N/A
ROICexgc(3y)17.75%
ROICexgc(5y)N/A
ROCE(3y)18.57%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.04%
ROICexc growth 3YN/A
ROICexc growth 5Y18.04%
OM growth 3YN/A
OM growth 5Y14.04%
PM growth 3YN/A
PM growth 5Y9.84%
GM growth 3Y36.68%
GM growth 5Y3.15%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 128.52% | ||
| Cap/Sales | 9.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 64.91% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 2.27 |
F-Score6
WACC8.55%
ROIC/WACC0.9
Cap/Depr(3y)79.14%
Cap/Depr(5y)68.05%
Cap/Sales(3y)5.67%
Cap/Sales(5y)5.96%
Profit Quality(3y)76.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.65%
EPS 3YN/A
EPS 5Y7.81%
EPS Q2Q%-9.76%
EPS Next Y-41.54%
EPS Next 2Y-26.66%
EPS Next 3Y-14.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.53%
Revenue growth 3Y19.74%
Revenue growth 5Y-2.39%
Sales Q2Q%0.84%
Revenue Next Year-13.78%
Revenue Next 2Y-7.45%
Revenue Next 3Y-2.93%
Revenue Next 5YN/A
EBIT growth 1Y-60.9%
EBIT growth 3YN/A
EBIT growth 5Y11.31%
EBIT Next Year-17.02%
EBIT Next 3Y-4.04%
EBIT Next 5YN/A
FCF growth 1Y-55.62%
FCF growth 3YN/A
FCF growth 5Y-10.38%
OCF growth 1Y-18.4%
OCF growth 3YN/A
OCF growth 5Y-7.02%