PEABODY ENERGY CORP (BTU)
US7045511000 - Common Stock
We assign a fundamental rating of 5 out of 10 to BTU. BTU was compared to 214 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 is valued quite cheap, but it does not seem to be growing. With these ratings, BTU could be worth investigating further 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.
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 12.74%. This is in the better half of the industry: BTU outperforms 72.30% of its industry peers.
BTU's Return On Equity of 21.42% is fine compared to the rest of the industry. BTU outperforms 64.79% of its industry peers.
With a decent Return On Invested Capital value of 15.40%, BTU is doing good in the industry, outperforming 78.40% of the companies in the same industry.
BTU had an Average Return On Invested Capital over the past 3 years of 13.45%. This is significantly below the industry average of 45.80%.
The last Return On Invested Capital (15.40%) for BTU is above the 3 year average (13.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 21.42% | ||
| ROIC | 15.4% |
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 (15.36%) is comparable to the rest of the industry.
BTU's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 21.39%, BTU perfoms like the industry average, outperforming 44.60% of the companies in the same industry.
In the last couple of years the Operating Margin of BTU has grown nicely.
With a Gross Margin value of 31.57%, BTU is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
BTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.39% | ||
| PM (TTM) | 15.36% | ||
| GM | 31.57% |
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
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.
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
An Altman-Z score of 2.63 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 2.63. This is in the better half of the industry: BTU outperforms 68.08% of its industry peers.
The Debt to FCF ratio of BTU is 0.49, which is an excellent value as it means it would take BTU, only 0.49 years of fcf income to pay off all of its debts.
BTU has a Debt to FCF ratio of 0.49. This is amongst the best in the industry. BTU outperforms 88.26% 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 has a Debt to Equity ratio of 0.09. This is in the better half of the industry: BTU outperforms 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.77
WACC8.68%
2.3 Liquidity
A Current Ratio of 2.06 indicates that BTU has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.06, BTU is doing good in the industry, outperforming 76.06% of the companies in the same industry.
BTU has a Quick Ratio of 1.70. This is a normal value and indicates that BTU is financially healthy and should not expect problems in meeting its short term obligations.
BTU has a better Quick ratio (1.70) than 73.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
BTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.04%.
BTU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
The Revenue has decreased by -0.71% in the past year.
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)-37.04%
EPS 3YN/A
EPS 5Y7.81%
EPS growth Q2Q-66.07%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y19.74%
Revenue growth 5Y-2.39%
Revenue growth Q2Q-24.05%
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 -11.51% on average per year.
Based on estimates for the next years, BTU will show a decrease in Revenue. The Revenue will decrease by -3.31% on average per year.
EPS Next Y-22.51%
EPS Next 2Y-23.48%
EPS Next 3Y-11.51%
EPS Next 5YN/A
Revenue Next Year-10.82%
Revenue Next 2Y-9.2%
Revenue Next 3Y-3.31%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.81, which indicates a rather cheap valuation of BTU.
BTU's Price/Earnings ratio is rather cheap when compared to the industry. BTU is cheaper than 88.26% of the companies in the same industry.
BTU is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.20, the valuation of BTU can be described as very cheap.
BTU's Price/Forward Earnings ratio is rather cheap when compared to the industry. BTU is cheaper than 86.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. BTU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.81 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTU is valued cheaper than 98.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BTU indicates a rather cheap valuation: BTU is cheaper than 89.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.43 | ||
| EV/EBITDA | 1.7 |
4.3 Compensation for Growth
BTU has a very decent profitability rating, which may justify a higher PE ratio.
BTU's earnings are expected to decrease with -11.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-23.48%
EPS Next 3Y-11.51%
5. Dividend
5.1 Amount
BTU has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.79, BTU is paying slightly less dividend.
With a Dividend Yield of 1.25, BTU pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
BTU has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BTU pays out 4.03% of its income as dividend. This is a sustainable payout ratio.
DP4.03%
EPS Next 2Y-23.48%
EPS Next 3Y-11.51%
PEABODY ENERGY CORP
NYSE:BTU (4/25/2024, 3:20:03 PM)
After market: 23.94 0 (0%)23.94
+0.48 (+2.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.81 | ||
| Fwd PE | 6.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 21.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.39% | ||
| PM (TTM) | 15.36% | ||
| GM | 31.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-37.04%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y19.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y