Peabody Energy Comm (BTU) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 2.67%
• Average Volume (3M): 5.90M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 1.09
• Revenue Growth: -14.50%
• EPS Growth: -46.36%
• Country: US
• Employees: 5,600
• Sector: Energy
• Sector Strength: 45
• Industry: Coal
• EPS (TTM): 2.69
• Shares Outstanding: 121,567,314
• 10 Day Avg. Volume: 7,647,055
• 30 Day Avg. Volume: 5,898,207
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.40
• Price to Cash Flow (P/CF): 3.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.25
• Price Target Upside: 74.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Peabody Energy is financially robust with strategic growth initiatives and undervaluation, but faces technical weakness and external risks such as geological challenges and tariffs.

Positive Factors

Acquisition Strategy

The acquisition of Anglo's assets is expected to improve Peabody's portfolio, leading to better profitability and free cash flow generation over time.

Operational Performance

Peabody reported a strong performance of the thermal coal operations, exceeding expectations.

Negative Factors

Cost Management

Costs across the board are higher than estimates, which is disappointing.

Market Conditions

The ongoing lack of financing structure clarity and the currently depressed coal pricing environment remain major headwinds in near term.

Peabody Energy Comm Business Overview & Revenue Model

Company Description

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. 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, 2021, it owned interests in 17 coal mining operations located in the United States and Australia; and had approximately 2.5 billion tons of proven and probable coal reserves and approximately 450,000 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. Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Peabody Energy Corporation generates revenue primarily through the extraction and sale of coal. The company's key revenue streams include the sale of thermal coal, which is used for power generation, and metallurgical coal, which is used in steel production. Peabody operates several mining operations in the Powder River Basin, Illinois Basin, and Appalachian regions in the U.S., as well as in New South Wales and Queensland, Australia. The company's revenue is influenced by coal prices, production volumes, and the demand from the electricity generation and steel manufacturing sectors. Significant partnerships with utility companies, industrial consumers, and international buyers also contribute to Peabody's earnings. Additionally, the company may engage in trading and brokerage activities related to its core products.

Peabody Energy Comm Financial Statement Overview

Summary

Peabody Energy exhibits strong financial management with a solid balance sheet and effective cash flow, but declining revenue and profitability margins are concerning. Low debt levels and strong equity are positives, but top-line growth challenges persist.

Income Statement

The income statement reveals a mixed performance. The gross profit margin for TTM is approximately 11%, down from 31.6% in 2023. The net profit margin for TTM stands at 8.9%, a decrease from 15.4% in 2023. Revenue has decreased significantly from $4.95 billion in 2023 to $4.16 billion in TTM, indicating a negative growth rate. EBIT and EBITDA margins for TTM are lower compared to the previous year, showing reduced operational efficiency.

Balance Sheet

The balance sheet reflects strong equity and low leverage. The debt-to-equity ratio is very low at 0.02, down from 0.11 in 2023, indicating minimal reliance on debt. The equity ratio is robust at 62.3%, showing strong shareholder equity in the asset base. Return on equity (ROE) for TTM is 10%, indicating reasonable profitability relative to equity.

Cash Flow

Cash flow analysis indicates healthy cash generation. The free cash flow growth rate is 8.1% from 2023 to TTM, reflecting positive cash management. Operating cash flow to net income ratio is robust at 3.1, demonstrating strong cash conversion efficiency. The free cash flow to net income ratio is 2.0, indicating effective cash flow management against profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.24B	4.95B	4.98B	3.32B	2.88B
	Gross Profit
815.80M	1.56B	1.69B	765.20M	356.20M
	EBIT
445.30M	1.07B	1.38B	432.20M	-178.80M
	EBITDA
906.00M	1.51B	1.79B	907.00M	-1.37B
	Net Income Common Stockholders
370.90M	759.60M	1.30B	360.10M	-1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
700.40M	969.30M	1.31B	954.30M	709.20M
	Total Assets
5.95B	5.96B	5.61B	4.95B	4.67B
	Total Debt
467.20M	399.20M	344.80M	1.17B	1.59B
	Net Debt
-233.20M	-570.10M	-962.50M	210.70M	880.70M
	Total Liabilities
2.24B	2.35B	2.32B	3.13B	3.69B
	Stockholders Equity
3.65B	3.55B	3.23B	1.76B	929.60M
Cash Flow		Free Cash Flow
204.00M	687.20M	949.40M	236.90M	-207.20M
	Operating Cash Flow
606.50M	1.04B	1.17B	420.00M	-9.70M
	Investing Cash Flow
-598.10M	-342.60M	-28.70M	-131.50M	-206.70M
	Financing Cash Flow
-276.00M	-460.30M	-681.60M	-43.40M	193.40M

Peabody Energy Comm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTU, the sentiment is Negative. The current price of 12.73 is below the 20-day moving average (MA) of 13.05, below the 50-day MA of 14.20, and below the 200-day MA of 20.75, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTU.

Peabody Energy Comm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	79 Outperform	$3.38B	9.50	19.34%	10.63%	-4.60%	-42.35%
BTU	78 Outperform	$1.49B	4.54	10.41%	2.67%	-14.50%	-46.36%
CNR	74 Outperform	$3.74B	7.29	19.67%	0.86%	-13.20%	-51.56%
ARCH	72 Outperform	$2.44B	14.16	12.64%	0.74%	-17.03%	-78.54%
SXC	67 Neutral	$747.43M	7.85	14.82%	5.21%	-6.19%	65.91%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%
HNRG	39 Underperform	$554.05M	―	-121.29%	―	-37.38%	-494.24%

Peabody Energy Comm Corporate Events

Peabody Energy Reviews Acquisition Plans After Mine Incident

Peabody Energy Corporation announced a review of its acquisition plans for Anglo American Plc’s steelmaking coal assets following an ignition event at the Moranbah North Mine. The company is in discussions with Anglo American to assess the impact of this event and is preserving its rights under the purchase agreements. Peabody has also disclosed certain financial information to potential investors to facilitate financing discussions related to the acquisition.

Spark’s Take on BTU Stock

According to Spark, TipRanks’ AI Analyst, BTU is a Outperform.

Peabody Energy’s overall score reflects a robust financial position and promising strategic initiatives, tempered by technical weaknesses and external challenges such as geological issues and tariffs. The company’s low valuation offers potential upside, but market momentum remains a concern.

To see Spark’s full report on BTU stock, click here.

Peabody Energy to Present at BMO Metals Conference

Peabody Energy Corporation announced its participation in the BMO Global Metals & Mining Conference starting February 24, 2025, where it plans to present its strategic focus and business developments. The company highlighted its transformation towards steelmaking coal to meet Asian demand, record safety and environmental performance in 2024, and strategic acquisitions, including Anglo American’s metallurgical coal portfolio, which are expected to enhance its market position and financial performance.

Peabody Energy’s Major Acquisition of Anglo American Assets

On January 14, 2025, Peabody Energy’s CFO, Mark A. Spurbeck, will present an update on the company’s significant acquisition of Anglo American’s metallurgical coal assets in Australia, announced in November 2024. This acquisition, valued at $2.32 billion, is expected to transform Peabody into a leading met coal producer, providing substantial financial and strategic benefits, including cost synergies, enhanced shareholder value, and a doubling of EBITDA by 2026. The transaction is set to close in the second quarter of 2025, pending regulatory approvals and financing arrangements.