NYSE:BTU

Stock Analysis Report

Executive Summary

Peabody Energy Corporation engages in coal mining business.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Risks

  • Peabody Energy has significant price volatility in the past 3 months.

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

5.8%

NYSE:BTU

-3.4%

US Oil and Gas

-1.0%

US Market


1 Year Return

-54.0%

NYSE:BTU

-22.5%

US Oil and Gas

-0.4%

US Market

BTU underperformed the Oil and Gas industry which returned -22.5% over the past year.

BTU underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

BTUIndustryMarket
7 Day5.8%-3.4%-1.0%
30 Day-15.7%-9.2%-3.3%
90 Day-28.1%-11.9%0.8%
1 Year-50.4%-54.0%-19.7%-22.5%1.9%-0.4%
3 Yearn/a-8.6%-16.8%39.4%30.4%
5 Yearn/a-33.5%-42.5%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Peabody Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Peabody Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Peabody Energy is good value based on earnings compared to the US Oil and Gas industry average.

Peabody Energy is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Peabody Energy earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Peabody Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

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

-83.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Peabody Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Peabody Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Peabody Energy's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Peabody Energy's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Peabody Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Peabody Energy will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


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

Peabody Energy has delivered over 20% year on year earnings growth in the past 5 years.

Peabody Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Peabody Energy's 1-year earnings growth is negative, it can't be compared to the US Oil and Gas industry average.


Return on Equity

Peabody Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Peabody Energy used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Peabody Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Peabody Energy's financial position?


Financial Position Analysis

Peabody Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Peabody Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Peabody Energy's level of debt (41.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (149.9% vs 41.3% today).

Debt is well covered by operating cash flow (71.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

5.60%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Peabody Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Peabody Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Peabody Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Peabody Energy has been paying a dividend for less than 10 years.

Dividend payments have increased, but Peabody Energy only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Glenn Kellow (51yo)

4.3yrs

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

Glenn's remuneration is higher than average for companies of similar size in United States of America.

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

4.1yrs

Average Tenure

56yo

Average Age

The tenure for the Peabody Energy management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Peabody Energy board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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

  • Glenn Kellow (51yo)

    President

    • Tenure: 4.3yrs
    • Compensation: $7.33m
  • Bryan Galli (58yo)

    Group Executive of Marketing and Trading

    • Tenure: 5.4yrs
  • Bob Bruer

    Vice President of Tax Planning & Compliance

  • Patrick Forkin (61yo)

    Senior Vice President of Corporate Development

    • Tenure: 1.8yrs
  • A. Dorch (51yo)

    Executive VP of Government Affairs

    • Tenure: 4.0yrs
    • Compensation: $2.01m
  • Vic Svec

    SVP, Global Investor and Corporate Relations

  • Lina Young

    Chief Information Officer & Senior VP

  • Charles Meintjes (56yo)

    Executive VP & COO

    • Tenure: 0.1yrs
    • Compensation: $2.62m
  • Kemal Williamson (59yo)

    President of U.S. Operations

    • Tenure: 6.8yrs
    • Compensation: $2.26m
  • Amy Schwetz (44yo)

    Executive VP

    • Tenure: 4.1yrs
    • Compensation: $2.82m

Board Members

  • Glenn Kellow (51yo)

    President

    • Tenure: 4.6yrs
    • Compensation: $7.33m
  • Teresa Madden (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $267.47k
  • Steve Gorman (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $254.97k
  • Nick Chirekos (60yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $247.47k
  • Mike Sutherlin (73yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: $254.97k
  • Ken Moore (50yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $242.47k
  • Andréa Bertone (57yo)

    Director

    • Tenure: 0.5yrs
  • Shaun Usmar (49yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $239.97k
  • Joe Laymon (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $254.97k
  • Bob Malone (67yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: $394.97k

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$1.987b
  • Shares outstanding: 103.60m
  • Website: Click here

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 Analysis2019/08/18 01:09
End of Day Share Price2019/08/16 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.