NYSE:BTU

Stock Analysis Report

Executive Summary

Peabody Energy Corporation engages in coal mining business.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Peabody Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BTU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.9%

BTU

5.9%

US Oil and Gas

7.2%

US Market


1 Year Return

-90.4%

BTU

-56.4%

US Oil and Gas

-10.4%

US Market

Return vs Industry: BTU underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: BTU underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

BTUIndustryMarket
7 Day-17.9%5.9%7.2%
30 Day-53.8%-35.6%-12.6%
90 Day-70.4%-51.6%-19.4%
1 Year-90.2%-90.4%-54.6%-56.4%-8.5%-10.4%
3 Year-89.0%-90.1%-51.8%-56.5%15.8%8.3%
5 Yearn/a-55.3%-62.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is Peabody Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Peabody Energy undervalued compared to its fair value and its price relative to the market?

0.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BTU ($2.81) is trading above our estimate of fair value ($0.76)

Significantly Below Fair Value: BTU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BTU is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: BTU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BTU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BTU is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Peabody Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

32.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTU is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BTU is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BTU is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BTU's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: BTU's revenue is forecast to decline over the next 3 years (-5.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTU is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Peabody Energy performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTU is currently unprofitable.

Growing Profit Margin: BTU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BTU is unprofitable, but has reduced losses over the past 5 years at a rate of 59.2% per year.

Accelerating Growth: Unable to compare BTU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BTU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).


Return on Equity

High ROE: BTU has a negative Return on Equity (-7.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is Peabody Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BTU's short term assets ($1.6B) exceed its short term liabilities ($975.3M).

Long Term Liabilities: BTU's short term assets ($1.6B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: BTU's debt to equity ratio (48.5%) is considered high.

Reducing Debt: BTU's debt to equity ratio has reduced from 219.9% to 48.5% over the past 5 years.


Balance Sheet

Inventory Level: BTU has a high level of physical assets or inventory.

Debt Coverage by Assets: BTU's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BTU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BTU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 37.8% per year.


Next Steps

Dividend

What is Peabody Energy's current dividend yield, its reliability and sustainability?

1.85%

Forecast Dividend Yield


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 payouts.

High Dividend: Unable to evaluate BTU's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Current Payout to Shareholders

Dividend Coverage: BTU is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BTU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Glenn Kellow (51yo)

4.83s

Tenure

US$7,333,255

Compensation

Mr. Glenn L. Kellow is President and Chief Executive Officer of Peabody Energy Corporation (“Peabody”) since May 2015. Mr. Kellow has been a Director of Peabody Energy Corporation since January 2015. Mr. K ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD7.33M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Kellow
President4.83yrsUS$7.33m0.57% $1.5m
Charles Meintjes
Executive VP & COO0.67yrUS$2.62m0.11% $290.1k
Kemal Williamson
President of U.S. Operations7.42yrsUS$2.26m0.18% $483.0k
A. Dorch
Executive Officerno dataUS$2.01m0.12% $306.7k
Mark Spurbeck
Interim Chief Financial Officer0.17yrno data0.033% $87.7k
Lina Young
Chief Information Officer & Senior VPno datano datano data
Vic Svec
SVP, Global Investor and Corporate Relationsno datano datano data
Robert Bruer
Vice President of Tax Planning & Complianceno datano datano data
Scott Jarboe
Chief Legal Officer & Corporate Secretary0.17yrno data0.029% $76.1k
Bryan Galli
Group Executive of Marketing and Trading6yrsno datano data

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BTU's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Kellow
President4.83yrsUS$7.33m0.57% $1.5m
Teresa Madden
Independent Director2.83yrsUS$267.47kno data
Stephen Gorman
Independent Director2.83yrsUS$254.97kno data
Michael Sutherlin
Independent Director6.17yrsUS$254.97kno data
Joe Laymon
Independent Director2.83yrsUS$254.97kno data
Robert Malone
Independent Non-Executive Chairman4.17yrsUS$394.97kno data
Kenneth Moore
Independent Director2.83yrsUS$242.47kno data
Andréa Bertone
Independent Director1yrno datano data
Darren Yeates
Independent Directorno datano datano data
Nicholas Chirekos
Independent Director2.83yrsUS$247.47kno data

2.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BTU's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Peabody Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Peabody Energy Corporation
  • Ticker: BTU
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$262.226m
  • Shares outstanding: 97.12m
  • Website: https://www.peabodyenergy.com

Number of Employees


Location

  • Peabody Energy Corporation
  • Peabody Plaza
  • 701 Market Street
  • St. Louis
  • Missouri
  • 63101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTUSNSE (Santiago Stock Exchange)YesNew Common StockCLUSDApr 2017
BTUNYSE (New York Stock Exchange)YesNew Common StockUSUSDApr 2017
PBEDB (Deutsche Boerse AG)YesNew Common StockDEEURApr 2017

Biography

Peabody Energy Corporation engages in coal mining business. The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, and Corporate and Other segments. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. As of December 31, 2019, it owned interests in 21 coal mining operations located in the United States and Australia; and had approximately 3.6 billion tons of proven and probable coal reserves and approximately 500,000 acres of surface property through ownership and lease agreements. The company also engages in direct and brokered trading of coal and freight-related contracts, as well as provides transportation-related services, which involve financial derivative contracts and physical contracts. Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri. On April 13, 2016, Peabody Energy Corporation and its subsidiaries filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Eastern District of Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:21
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.