NYSE:BTU

Stock Analysis Report

Executive Summary

Peabody Energy Corporation engages in coal mining business.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.


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


Market Performance


7 Day Return

9.7%

BTU

0.8%

US Oil and Gas

2.3%

US Market


1 Year Return

-56.2%

BTU

-22.2%

US Oil and Gas

5.6%

US Market

Return vs Industry: BTU underperformed the US Oil and Gas industry which returned -22.2% over the past year.

Return vs Market: BTU underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

BTUIndustryMarket
7 Day9.7%0.8%2.3%
30 Day-15.8%-7.9%-1.0%
90 Day-30.0%-8.3%-0.7%
1 Year-52.4%-56.2%-19.3%-22.2%7.9%5.6%
3 Yearn/a-8.2%-16.4%45.6%36.3%
5 Yearn/a-23.7%-34.3%65.8%47.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BTU ($15.82) is trading below our estimate of fair value ($37.62)

Significantly Undervalued: BTU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BTU is good value based on its PE Ratio (3.8x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: BTU is good value based on its PE Ratio (3.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 PB Ratio (0.5x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Peabody Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-82.5%

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 (-82.5% per year).

Earnings vs Market: BTU's earnings are forecast to decline over the next 3 years (-82.5% 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 (-3.3% per year).

High Growth Revenue: BTU's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BTU has become profitable over the past 5 years, growing earnings by 51.5% per year.

Accelerating Growth: BTU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BTU had negative earnings growth (-25.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: BTU's Return on Equity (15.3%) is considered low.


Return on Assets

ROA vs Industry: BTU has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: BTU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Peabody Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BTU's short term assets ($1.8B) exceeds its short term liabilities ($991.7M)

Long Term Liabilities: BTU's short term assets (1.8B) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: BTU's debt to equity ratio (41.3%) is considered high

Reducing Debt: BTU's debt to equity ratio has reduced from 149.9% to 41.3% over the past 5 years.

Debt Coverage: BTU's debt is well covered by operating cash flow (71.5%).

Interest Coverage: BTU's interest payments on its debt are well covered by EBIT (4.1x coverage).


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 1.352110x debt).


Next Steps

Dividend

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

3.67%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Years6.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BTU's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BTU's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: Whilst dividend payments have been stable, BTU has been paying a dividend for less than 10 years.

Growing Dividend: BTU's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.6%), BTU's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BTU is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

What is the CEO of Peabody Energy's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Glenn Kellow (51yo)

4.4yrs

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: Insufficient data to establish whether Glenn's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Glenn's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BTU's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BTU's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$871,50029 Aug 19
Elliott Management Corporation
EntityCompany
Shares50,000
Max PriceUS$17.43
BuyUS$176,32014 Aug 19
Elliott Management Corporation
EntityCompany
Shares9,801
Max PriceUS$17.99
BuyUS$264,56409 Aug 19
Elliott Management Corporation
EntityCompany
Shares15,199
Max PriceUS$17.91
BuyUS$718,98806 Aug 19
Elliott Management Corporation
EntityCompany
Shares40,302
Max PriceUS$17.84
BuyUS$11,642,21705 Aug 19
Elliott Management Corporation
EntityCompany
Shares634,698
Max PriceUS$18.48

Ownership Breakdown


Management Team

  • Lina Young

    Chief Information Officer & Senior VP

    • Tenure: 0yrs
  • Charles Meintjes (56yo)

    Executive VP & COO

    • Tenure: 0.3yrs
    • Compensation: US$2.62m
  • Bob Bruer

    Vice President of Tax Planning & Compliance

    • Tenure: 0yrs
  • Patrick Forkin (61yo)

    Senior Vice President of Corporate Development

    • Tenure: 1.9yrs
  • Bryan Galli (58yo)

    Group Executive of Marketing and Trading

    • Tenure: 5.6yrs
  • Kemal Williamson (59yo)

    President of U.S. Operations

    • Tenure: 7yrs
    • Compensation: US$2.26m
  • Vic Svec

    SVP, Global Investor and Corporate Relations

    • Tenure: 0yrs
  • Amy Schwetz (44yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$2.82m
  • A. Dorch (51yo)

    Executive VP of Government Affairs

    • Tenure: 4.2yrs
    • Compensation: US$2.01m
  • Glenn Kellow (51yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$7.33m

Board Members

  • Teresa Madden (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$267.47k
  • Steve Gorman (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$254.97k
  • Mike Sutherlin (73yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$254.97k
  • Joe Laymon (66yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$254.97k
  • Bob Malone (67yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: US$394.97k
  • Shaun Usmar (49yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$239.97k
  • Ken Moore (50yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$242.47k
  • Andréa Bertone (58yo)

    Independent Director

    • Tenure: 0.7yrs
  • Glenn Kellow (51yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$7.33m
  • Nick Chirekos (60yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$247.47k

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$1.639b
  • Shares outstanding: 103.60m
  • 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 Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Seaborne Metallurgical Mining, Seaborne Ther ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:31
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.