Peabody Energy Corporation Fundamental Analysis (NYSE: BTU)
Peabody Energy Corporation (NYSE: BTU) shows weak financial fundamentals with a PE ratio of -16.72, profit margin of -4.56%, and ROE of -5.29%. The company generates $4.0B in annual revenue with weak year-over-year growth of -8.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BTU's fundamental strength across five key dimensions:
Efficiency Score
WeakBTU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBTU trades at attractive valuation levels.
Growth Score
WeakBTU faces weak or negative growth trends.
Financial Health Score
ExcellentBTU maintains a strong and stable balance sheet.
Profitability Score
WeakBTU struggles to sustain strong margins.
Key Financial Metrics
Is BTU Expensive or Cheap?
P/E Ratio
BTU trades at -16.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BTU's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Peabody Energy Corporation at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.12 times EBITDA. This signals the market has high growth expectations.
How Well Does BTU Make Money?
Net Profit Margin
For every $100 in sales, Peabody Energy Corporation keeps $-4.56 as profit after all expenses.
Operating Margin
Core operations generate -3.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.29 in profit for every $100 of shareholder equity.
ROA
Peabody Energy Corporation generates $-3.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Peabody Energy Corporation produces operating cash flow of $848.31M, showing steady but balanced cash generation.
Free Cash Flow
Peabody Energy Corporation generates strong free cash flow of $451.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.71 in free cash annually.
FCF Yield
BTU converts 14.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-16.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.009
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How BTU Stacks Against Its Sector Peers
| Metric | BTU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -16.72 | 21.20 | Better (Cheaper) |
| ROE | -5.29% | 1274.00% | Weak |
| Net Margin | -4.56% | 1248.00% | Weak |
| Debt/Equity | 0.13 | -1.74 (disorted) | Distorted |
| Current Ratio | 2.01 | 2.20 | Strong Liquidity |
| ROA | -3.35% | 4306.00% | Weak |
BTU outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Peabody Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.51%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
97.73%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
7953.48%
Industry Style: Cyclical, Value, Commodity
High Growth