PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD
Taking everything into account, BTU scores 5 out of 10 in our fundamental rating. BTU was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. BTU is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. BTU is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BTU had positive earnings in the past year.
BTU had a positive operating cash flow in the past year.
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 68.08% of the companies in the same industry.
BTU has a Return On Equity (9.97%) which is comparable to the rest of the industry.
BTU has a worse Return On Invested Capital (4.53%) than 62.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BTU is significantly below the industry average of 23.55%.
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
Looking at the Profit Margin, with a value of 8.73%, BTU is in line with its industry, outperforming 52.58% of the companies in the same industry.
In the last couple of years the Profit Margin of BTU has declined.
BTU has a Operating Margin of 7.24%. This is in the lower half of the industry: BTU underperforms 64.79% of its industry peers.
In the last couple of years the Operating Margin of BTU has grown nicely.
The Gross Margin of BTU (19.16%) is worse than 67.14% of its industry peers.
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
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.
BTU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BTU has a worse debt to assets ratio.
2.2 Solvency
BTU has an Altman-Z score of 1.92. 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 1.92 is fine compared to the rest of the industry. BTU outperforms 63.85% of its industry peers.
The Debt to FCF ratio of BTU is 1.76, which is an excellent value as it means it would take BTU, only 1.76 years of fcf income to pay off all of its debts.
BTU has a better Debt to FCF ratio (1.76) than 84.51% 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 77.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.56
WACC8.15%
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 81.69% 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.
With a decent Quick ratio value of 1.77, BTU is doing good in the industry, outperforming 77.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
BTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.50%.
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 -8.24% in the last year.
The Revenue has been decreasing by -1.73% on average over the past years.
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
Based on estimates for the next years, BTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.54% on average per year.
BTU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.59% yearly.
EPS Next Y-75.15%
EPS Next 2Y23.73%
EPS Next 3Y12.54%
EPS Next 5YN/A
Revenue Next Year-8.79%
Revenue Next 2Y4.14%
Revenue Next 3Y2.59%
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
Based on the Price/Earnings ratio of 6.50, the valuation of BTU can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BTU indicates a rather cheap valuation: BTU is cheaper than 86.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. BTU is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.24 indicates a rather cheap valuation of BTU.
95.31% of the companies in the same industry are more expensive than BTU, based on the Price/Forward Earnings ratio.
BTU is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 4.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTU is valued cheaply inside the industry as 97.18% 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 79.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 1.99 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BTU's earnings are expected to grow with 12.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.73%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
BTU has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
BTU's Dividend Yield is comparable with the industry average which is at 6.58.
BTU's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 10.12% of its income as dividend. This is a sustainable payout ratio.
DP10.12%
EPS Next 2Y23.73%
EPS Next 3Y12.54%
13.64
+0.37 (+2.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change1.69%
Ins Owners0.65%
Ins Owner Change0.44%
Market Cap1.66B
Analysts82.5
Price Target20.15 (47.73%)
Short Float %12.86%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-4.82%
PT rev (3m)-17.71%
EPS NQ rev (1m)20%
EPS NQ rev (3m)-104.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-62.63%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 4.24 | ||
| P/S | 0.4 | ||
| P/FCF | 8.42 | ||
| P/OCF | 2.73 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 1.99 |
EPS(TTM)2.1
EY15.4%
EPS(NY)3.22
Fwd EY23.57%
FCF(TTM)1.62
FCFY11.88%
OCF(TTM)5
OCFY36.62%
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 | 1.92 |
F-Score5
WACC8.15%
ROIC/WACC0.56
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-75.15%
EPS Next 2Y23.73%
EPS Next 3Y12.54%
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 2Y4.14%
Revenue Next 3Y2.59%
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%