PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis
NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD
BTU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
BTU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.32%, BTU is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a Return On Equity value of 9.97%, BTU perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
The Return On Invested Capital of BTU (4.53%) is worse than 61.97% 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 25.88%.
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
The Profit Margin of BTU (8.73%) is comparable to the rest of the industry.
BTU's Profit Margin has declined in the last couple of years.
BTU has a worse Operating Margin (7.24%) than 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 66.67% of its industry peers.
BTU's Gross Margin has declined in the last couple of years.
| 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.
BTU has less shares outstanding than it did 1 year ago.
BTU has more shares outstanding than it did 5 years ago.
BTU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.94 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 1.94. This is in the better half of the industry: BTU outperforms 65.26% 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 Debt to FCF ratio of 1.76. This is amongst the best in the industry. BTU outperforms 85.45% 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.
With a decent Debt to Equity ratio value of 0.09, BTU is doing good in the industry, outperforming 78.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.45
WACC10.02%
2.3 Liquidity
A Current Ratio of 2.36 indicates that BTU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, BTU is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
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.
BTU's Quick ratio of 1.77 is fine compared to the rest of the industry. BTU outperforms 75.12% of its industry peers.
| 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.
Measured over the past years, BTU shows a decrease in Revenue. The Revenue has been decreasing by -1.73% on average per year.
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 12.54% yearly.
Based on estimates for the next years, BTU will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.65, the valuation of BTU can be described as very cheap.
Based on the Price/Earnings ratio, BTU is valued cheaply inside the industry as 81.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. BTU is valued rather cheaply when compared to this.
BTU is valuated cheaply with a Price/Forward Earnings ratio of 4.35.
92.96% of the companies in the same industry are more expensive than BTU, based on the Price/Forward Earnings ratio.
BTU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
BTU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BTU is cheaper than 95.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BTU is valued a bit cheaper than 79.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 2.06 |
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
With a Yearly Dividend Yield of 2.10%, BTU has a reasonable but not impressive dividend return.
BTU's Dividend Yield is slightly below the industry average, which is at 7.03.
Compared to an average S&P500 Dividend Yield of 2.36, BTU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 2Y23.73%
EPS Next 3Y12.54%
13.97
-0.08 (-0.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.47%
Inst Owner Change1.1%
Ins Owners0.53%
Ins Owner Change0.42%
Market Cap1.70B
Analysts82.5
Price Target21.17 (51.54%)
Short Float %12.7%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)-13.54%
PT rev (3m)-24.82%
EPS NQ rev (1m)-108.54%
EPS NQ rev (3m)-106.81%
EPS NY rev (1m)-40.95%
EPS NY rev (3m)-62.63%
Revenue NQ rev (1m)-4.72%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 4.35 | ||
| P/S | 0.41 | ||
| P/FCF | 8.62 | ||
| P/OCF | 2.8 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 2.06 |
EPS(TTM)2.1
EY15.03%
EPS(NY)3.22
Fwd EY23.01%
FCF(TTM)1.62
FCFY11.61%
OCF(TTM)5
OCFY35.76%
SpS34.47
BVpS30.17
TBVpS30.17
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 | 1.94 |
F-Score5
WACC10.02%
ROIC/WACC0.45
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 Year19.14%
EBIT Next 3Y23.64%
EBIT Next 5Y25.15%
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%