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PEABODY ENERGY CORP (BTU) Stock Fundamental Analysis

NYSE:BTU - New York Stock Exchange, Inc. - US7045511000 - Common Stock - Currency: USD

15.93  -0.42 (-2.57%)

After market: 16.02 +0.09 (+0.56%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BTU. BTU was compared to 212 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 cheap, but on the other hand it scores bad on growth. This makes BTU very considerable for value investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year BTU was profitable.
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.
In multiple years BTU reported negative operating cash flow during the last 5 years.
BTU Yearly Net Income VS EBIT VS OCF VS FCFBTU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B

1.2 Ratios

BTU's Return On Assets of 9.07% is fine compared to the rest of the industry. BTU outperforms 72.82% of its industry peers.
With a decent Return On Equity value of 14.63%, BTU is doing good in the industry, outperforming 61.16% of the companies in the same industry.
With a Return On Invested Capital value of 7.73%, BTU perfoms like the industry average, outperforming 52.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BTU is significantly below the industry average of 28.72%.
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 RankSector 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
BTU Yearly ROA, ROE, ROICBTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

1.3 Margins

BTU has a Profit Margin of 12.24%. This is comparable to the rest of the industry: BTU outperforms 49.51% of its industry peers.
In the last couple of years the Profit Margin of BTU has grown nicely.
Looking at the Operating Margin, with a value of 12.46%, BTU is doing worse than 61.65% of the companies in the same industry.
In the last couple of years the Operating Margin of BTU has grown nicely.
BTU has a Gross Margin of 23.26%. This is in the lower half of the industry: BTU underperforms 66.02% of its industry peers.
BTU's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
BTU Yearly Profit, Operating, Gross MarginsBTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60

7

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
BTU Yearly Shares OutstandingBTU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
BTU Yearly Total Debt VS Total AssetsBTU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.13 indicates that BTU is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.13, BTU is doing good in the industry, outperforming 62.62% 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.
The Debt to FCF ratio of BTU (0.98) is better than 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 has a Debt to Equity ratio of 0.09. This is in the better half of the industry: BTU outperforms 79.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 0.98
Altman-Z 2.13
ROIC/WACC0.93
WACC8.32%
BTU Yearly LT Debt VS Equity VS FCFBTU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 2.32 indicates that BTU has no problem at all paying its short term obligations.
The Current ratio of BTU (2.32) is better 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.
The Quick ratio of BTU (1.75) is better than 71.84% of its industry peers.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 1.75
BTU Yearly Current Assets VS Current LiabilitesBTU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

3

3. Growth

3.1 Past

BTU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.23%.
The Earnings Per Share has been decreasing by -9.00% on average over the past years.
EPS 1Y (TTM)-58.23%
EPS 3Y-9%
EPS 5YN/A
EPS Q2Q%-78.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.06%

3.2 Future

Based on estimates for the next years, BTU will show a very strong growth in Earnings Per Share. The EPS will grow by 23.48% on average per year.
Based on estimates for the next years, BTU will show a small growth in Revenue. The Revenue will grow by 2.97% on average per year.
EPS Next Y3.01%
EPS Next 2Y23.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.87%
Revenue Next 2Y2.97%
Revenue Next 3YN/A
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.
BTU Yearly Revenue VS EstimatesBTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
BTU Yearly EPS VS EstimatesBTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 10 -10 -20 -30

7

4. Valuation

4.1 Price/Earnings Ratio

BTU is valuated cheaply with a Price/Earnings ratio of 7.66.
Compared to the rest of the industry, the Price/Earnings ratio of BTU indicates a somewhat cheap valuation: BTU is cheaper than 75.73% of the companies listed in the same industry.
BTU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
The Price/Forward Earnings ratio is 7.43, which indicates a rather cheap valuation of BTU.
BTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BTU is cheaper than 77.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BTU to the average of the S&P500 Index (94.77), we can say BTU is valued rather cheaply.
Industry RankSector Rank
PE 7.66
Fwd PE 7.43
BTU Price Earnings VS Forward Price EarningsBTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

97.57% 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 cheaply inside the industry as 82.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.6
EV/EBITDA 1.78
BTU Per share dataBTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BTU's earnings are expected to grow with 23.48% in the coming years.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y23.48%
EPS Next 3YN/A

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.67%, BTU has a reasonable but not impressive dividend return.
The stock price of BTU dropped by -44.49% 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 2.29, BTU is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.67%

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
BTU Yearly Dividends per shareBTU Yearly Dividends per shareYearly Dividends per share 2015 2018 2019 2023 2024 0.5 1 1.5 2

5.3 Sustainability

11.10% of the earnings are spent on dividend by BTU. This is a low number and sustainable payout ratio.
DP11.1%
EPS Next 2Y23.48%
EPS Next 3YN/A
BTU Yearly Income VS Free CF VS DividendBTU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B
BTU Dividend Payout.BTU Dividend Payout, showing the Payout Ratio.BTU Dividend Payout.PayoutRetained Earnings

PEABODY ENERGY CORP

NYSE:BTU (2/7/2025, 8:15:00 PM)

After market: 16.02 +0.09 (+0.56%)

15.93

-0.42 (-2.57%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)N/A N/A
Inst Owners93.6%
Inst Owner Change0.31%
Ins Owners0.47%
Ins Owner Change-0.13%
Market Cap1.94B
Analysts80
Price Target28.15 (76.71%)
Short Float %11.53%
Short Ratio5.02
Dividend
Industry RankSector Rank
Dividend Yield 1.67%
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 RankSector Rank
PE 7.66
Fwd PE 7.43
P/S 0.45
P/FCF 5.6
P/OCF 2.52
P/B 0.53
P/tB 0.53
EV/EBITDA 1.78
EPS(TTM)2.08
EY13.06%
EPS(NY)2.14
Fwd EY13.45%
FCF(TTM)2.84
FCFY17.85%
OCF(TTM)6.33
OCFY39.74%
SpS35.79
BVpS29.95
TBVpS29.95
PEG (NY)2.54
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.13
F-Score6
WACC8.32%
ROIC/WACC0.93
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)-58.23%
EPS 3Y-9%
EPS 5YN/A
EPS Q2Q%-78.95%
EPS Next Y3.01%
EPS Next 2Y23.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.06%
Revenue Next Year-0.87%
Revenue Next 2Y2.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-60.9%
EBIT growth 3YN/A
EBIT growth 5Y11.31%
EBIT Next Year-18.73%
EBIT Next 3Y3.35%
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%