BTU Stock Overview
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally.
Peabody Energy Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$24.46|
|52 Week High||US$33.29|
|52 Week Low||US$5.37|
|1 Month Change||-0.20%|
|3 Month Change||30.11%|
|1 Year Change||355.49%|
|3 Year Change||-1.69%|
|5 Year Change||-1.53%|
|Change since IPO||-21.10%|
Recent News & Updates
Peabody Energy: After A Bad Q1, Paying 3x FCF Is Probably Cheap Enough
Peabody Energy should be benefitting from soaring coal prices. However, surprisingly it's not. For Q1 2022, Peabody should be reporting strong free cash flows, yet it's reported losses. Peabody Energy should be paying out a special dividend right now. Instead, it just diluted shareholders to cover a margin call. All that being said, I believe that paying approximately 2x to 3x free cash flows is cheap enough for a diversified portfolio of energy stocks. As always, happy to discuss my thesis further.
Peabody Energy: The Right Stock At The Right Time
Thermal Coal looks to be in the early stages of a long-term bull market, and Metallurgical prices, well volatile, remain high. Peabody has the cost structure and resources to take unique advantage of this bull market. The Stock is cheap using a number of metrics.
Peabody Is Unexpected Winner Of Geopolitical Crisis
Not long ago, Peabody was seen as a miner producing something that the world is set to abandon sooner rather than later. In other words, a company with no future. The EU natural gas crisis was the signal that suggested that things are looking up for the global coal market. I bought Peabody stock in early January in response. Between the EU's quest to become 100% free of Russian energy and other global factors, any dips in Peabody stock should be seen as a further buying opportunity. Global natural gas market trends suggest that the coal market is far from seeing a significant slide in demand going forward, meaning that Peabody's outlook is increasingly looking positive for the longer term, not just in short term.
Peabody Energy: Very Positive Outlook, And Still Cheap
Peabody Energy will see its near-term prospects meaningfully improve. Peabody is set up very well with a strong balance sheet and no near-term maturities. Peabody is priced at approximately 3x this year's free cash flows. What's more, the macro environment right now is sizzling hot.
As Europe Begs For Coal, Peabody Energy Can Deliver
Coal prices have risen by over 100% this year as Russian and Indonesian exports decline. Europe's effort to reduce its dependence on Russian natural gas necessitates a significant increase in coal consumption. U.S coal mining companies with export capacity such as Peabody Energy are set to make immense profits in the current environment. I estimate Peabody may see an EPS of $10 up to potentially $35 this year, depending on how the highly volatile situation unfolds. Given shifting market dynamics against natural gas, investors should not discount the long-run potential of U.S coal miners like Peabody.
|BTU||US Oil and Gas||US Market|
Return vs Industry: BTU exceeded the US Oil and Gas industry which returned 54.9% over the past year.
Return vs Market: BTU exceeded the US Market which returned -12.3% over the past year.
|BTU Average Weekly Movement||15.4%|
|Oil and Gas Industry Average Movement||8.4%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: BTU is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: BTU's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments.
Peabody Energy Fundamentals Summary
|BTU fundamental statistics|
Is BTU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BTU income statement (TTM)|
|Cost of Revenue||US$2.67b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||2.05|
|Net Profit Margin||8.80%|
How did BTU perform over the long term?See historical performance and comparison
Is Peabody Energy undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BTU ($24.46) is trading below our estimate of fair value ($25.51)
Significantly Below Fair Value: BTU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BTU is good value based on its Price-To-Earnings Ratio (11.9x) compared to the US Oil and Gas industry average (13.6x).
PE vs Market: BTU is good value based on its Price-To-Earnings Ratio (11.9x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: BTU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BTU is good value based on its Price-To-Book Ratio (1.9x) compared to the US Oil and Gas industry average (2.1x).
How is Peabody Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BTU's earnings are forecast to decline over the next 3 years (-39% per year).
Earnings vs Market: BTU's earnings are forecast to decline over the next 3 years (-39% per year).
High Growth Earnings: BTU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BTU's revenue is expected to decline over the next 3 years (-10.9% per year).
High Growth Revenue: BTU's revenue is forecast to decline over the next 3 years (-10.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BTU's Return on Equity is forecast to be low in 3 years time (18.3%).
How has Peabody Energy performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BTU has high quality earnings.
Growing Profit Margin: BTU became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: BTU has become profitable over the past 5 years, growing earnings by -26.7% per year.
Accelerating Growth: BTU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: BTU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (88.4%).
Return on Equity
High ROE: BTU's Return on Equity (16.1%) is considered low.
How is Peabody Energy's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: BTU's short term assets ($1.8B) exceed its short term liabilities ($817.3M).
Long Term Liabilities: BTU's short term assets ($1.8B) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: BTU's net debt to equity ratio (13%) is considered satisfactory.
Reducing Debt: BTU's debt to equity ratio has reduced from 269.3% to 56.4% over the past 5 years.
Debt Coverage: BTU's debt is not well covered by operating cash flow (7%).
Interest Coverage: BTU's interest payments on its debt are not well covered by EBIT (1.7x coverage).
What is Peabody Energy current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BTU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BTU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BTU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BTU's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: BTU is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as BTU has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Grech (59 yo)
Mr. James C. Grech also known as Jim, serves as President, Chief Executive Officer and Director at Peabody Energy Corporation since June 1, 2021. He served as Chief Executive Officer of Wolverine Fuels, LL...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD4.24M) is below average for companies of similar size in the US market ($USD6.83M).
Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.
Experienced Management: BTU's management team is considered experienced (2.8 years average tenure).
Experienced Board: BTU's board of directors are considered experienced (3.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.2%.
Peabody Energy Corporation's employee growth, exchange listings and data sources
- Name: Peabody Energy Corporation
- Ticker: BTU
- Exchange: NYSE
- Founded: 1883
- Industry: Coal and Consumable Fuels
- Sector: Energy
- Implied Market Cap: US$3.517b
- Shares outstanding: 143.80m
- Website: https://www.peabodyenergy.com
Number of Employees
- Peabody Energy Corporation
- Peabody Plaza
- 701 Market Street
- Saint Louis
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.