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 212 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 valued quite cheap, but it does not seem to be growing. This makes BTU very considerable for value investing!
1. Profitability
1.1 Basic Checks
BTU had positive earnings in the past year.
In the past year BTU had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BTU reported negative net income in multiple years.
Of the past 5 years BTU 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BTU (9.07%) is better than 72.82% of its industry peers.
The Return On Equity of BTU (14.63%) is better than 61.65% of its industry peers.
BTU has a Return On Invested Capital of 7.73%. This is comparable to the rest of the industry: BTU outperforms 52.91% of its industry peers.
BTU had an Average Return On Invested Capital over the past 3 years of 13.45%. This is significantly below the industry average of 28.73%.
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
The Profit Margin of BTU (12.24%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BTU has grown nicely.
BTU has a worse Operating Margin (12.46%) than 62.14% of its industry peers.
In the last couple of years the Operating Margin of BTU has grown nicely.
BTU's Gross Margin of 23.26% is on the low side compared to the rest of the industry. BTU is outperformed by 66.02% of its industry peers.
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
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
The debt/assets ratio for BTU has been reduced compared to a year ago.
2.2 Solvency
BTU has an Altman-Z score of 2.17. 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.
With a decent Altman-Z score value of 2.17, BTU is doing good in the industry, outperforming 63.59% of the companies in the same industry.
BTU has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
BTU's Debt to FCF ratio of 0.98 is amongst the best of the industry. BTU outperforms 88.35% 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.
BTU's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. BTU outperforms 79.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.91
WACC8.45%
2.3 Liquidity
BTU has a Current Ratio of 2.32. This indicates that BTU is financially healthy and has no problem in meeting its short term obligations.
BTU has a better Current ratio (2.32) than 75.73% of its industry peers.
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 71.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for BTU have decreased strongly by -58.65% in the last year.
Measured over the past 5 years, BTU shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
The Revenue for BTU has decreased by -18.53% 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 -2.39% on average per year.
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 -13.97% on average per year.
BTU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.93% yearly.
EPS Next Y-42.84%
EPS Next 2Y-34.41%
EPS Next 3Y-13.97%
EPS Next 5YN/A
Revenue Next Year-13.74%
Revenue Next 2Y-7.53%
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 5.82, which indicates a rather cheap valuation of BTU.
84.95% of the companies in the same industry are more expensive than BTU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BTU to the average of the S&P500 Index (28.47), we can say BTU is valued rather cheaply.
BTU is valuated reasonably with a Price/Forward Earnings ratio of 8.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTU indicates a somewhat cheap valuation: BTU is cheaper than 73.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. BTU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 8.5 |
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 97.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BTU is valued cheaper than 81.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.4 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
A cheap valuation may be justified as BTU's earnings are expected to decrease with -13.97% in the coming years.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-34.41%
EPS Next 3Y-13.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, BTU has a reasonable but not impressive dividend return.
The stock price of BTU dropped by -36.55% 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 slightly below the industry average, which is at 6.57.
Compared to the average S&P500 Dividend Yield of 2.28, BTU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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-34.41%
EPS Next 3Y-13.97%
PEABODY ENERGY CORP
NYSE:BTU (2/4/2025, 8:04:01 PM)
After market: 18.25 +0.04 (+0.22%)18.21
+0.71 (+4.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.6%
Inst Owner Change0.31%
Ins Owners0.47%
Ins Owner Change-0.13%
Market Cap2.21B
Analysts80
Price Target28.15 (54.59%)
Short Float %11.53%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.22
Dividend Growth(5Y)N/A
DP11.1%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-6.12%
PT rev (3m)-4.83%
EPS NQ rev (1m)-15.05%
EPS NQ rev (3m)-55.04%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 8.5 | ||
| P/S | 0.51 | ||
| P/FCF | 6.4 | ||
| P/OCF | 2.88 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 1.94 |
EPS(TTM)3.13
EY17.19%
EPS(NY)2.14
Fwd EY11.77%
FCF(TTM)2.84
FCFY15.62%
OCF(TTM)6.33
OCFY34.76%
SpS35.79
BVpS29.95
TBVpS29.95
PEG (NY)N/A
PEG (5Y)0.75
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 | 2.17 |
F-Score6
WACC8.45%
ROIC/WACC0.91
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-42.84%
EPS Next 2Y-34.41%
EPS Next 3Y-13.97%
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-13.74%
Revenue Next 2Y-7.53%
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-18.28%
EBIT Next 3Y-0.72%
EBIT Next 5Y5.09%
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%