tiprankstipranks
Trending News
More News >
Peabody Energy Comm (BTU)
NYSE:BTU
Advertisement

Peabody Energy Comm (BTU) AI Stock Analysis

Compare
751 Followers

Top Page

BTU

Peabody Energy Comm

(NYSE:BTU)

Rating:67Neutral
Price Target:
$18.00
â–²(3.45% Upside)
Peabody Energy's overall stock score reflects a stable financial foundation and positive earnings call guidance, tempered by valuation concerns and mixed corporate events. The company's strong balance sheet and cash flow management are significant strengths, while challenges in certain segments and a high P/E ratio pose risks.
Positive Factors
Financial Performance
Peabody's 1Q EBITDA of $144m beat analyst estimates and VA consensus, showcasing a strong operational performance.
Portfolio Development
Peabody's portfolio is set to improve following the ramp-up of the Centurion mine, which should translate to better profitability and free cash flow generation.
Sales Growth
Seaborne met sales are anticipated to grow as Shoal Creek and CMJV return to full production, indicating potential for improved future performance.
Negative Factors
Financing Challenges
Securing long-term financing remains challenging for Peabody due to a significant fall in the company's share price and weakened high yield debt markets.
Market Environment
The lackluster pricing environment remains a headwind for Peabody.
Transaction Uncertainty
The Anglo Coal deal poses uncertainty as Peabody believes the Material Adverse Change clause has been triggered, impacting the transaction.

Peabody Energy Comm (BTU) vs. SPDR S&P 500 ETF (SPY)

Peabody Energy Comm Business Overview & Revenue Model

Company DescriptionPeabody 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 MoneyPeabody Energy generates revenue primarily through the sale of coal products, with key revenue streams coming from thermal coal and metallurgical coal sales to utilities and industrial customers. The company’s revenue model is driven by long-term contracts and spot market sales, allowing it to capitalize on fluctuations in coal prices. Additionally, Peabody benefits from strategic partnerships and joint ventures in various regions, which enhance its market access and operational efficiencies. Factors contributing to its earnings include global energy demand, regulatory dynamics affecting coal usage, and the company's ability to manage production costs effectively.

Peabody Energy Comm Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call highlights Peabody's strong performance in safety, cost management, and legislative benefits, with a positive outlook for U.S. markets and advancements in the Centurion project. However, challenges in the Seaborne Metallurgical segment, ongoing disputes regarding the Moranbah North mine, and difficulties in the U.S. thermal segment present notable lowlights.
Q2-2025 Updates
Positive Updates
Record Safety and Cost Management
Peabody reported record safety performance and strong cost containment, with second quarter costs coming in below expectations.
Raising Full Year Guidance
Peabody raised its full-year guidance, citing strong performance and future prospects.
Legislative Benefits
New legislation reduced federal royalty rates from 12.5% to 7%, expected to generate $15-20 million in net benefits in the second half of 2025.
U.S. Market Strength
Coal fuel generation in the U.S. increased by 15% over the first half of 2024, driven by higher natural gas prices and increased electricity demand.
Seaborne Thermal Segment Performance
The Seaborne Thermal segment recorded $33.5 million of adjusted EBITDA with 17% margins, despite a loss of 400,000 tons due to port congestion.
Improved PRB Volumes and Cost
PRB volumes exceeded expectations, and costs are expected to improve with a $0.40 per ton benefit due to lower royalty rates.
Centurion Project Advancements
The Centurion project is ahead of schedule, with longwall startup now planned for February 2026.
Negative Updates
Seaborne Metallurgical Segment Loss
The Seaborne Metallurgical segment reported an adjusted EBITDA loss of $9.2 million, with a 23% decrease in average realized prices year-over-year.
Challenges at Moranbah North Mine
Ongoing disputes with Anglo American regarding the Moranbah North mine, with Peabody asserting a material adverse change has occurred.
Impact of Chinese Market
China's import demand was under pressure due to a 6% increase in domestic coal production, affecting seaborne coal market dynamics.
U.S. Thermal Segment Challenges
The U.S. thermal segment faced poor rail performance at Bear Run and challenging mining conditions at Twentymile, affecting sales volumes.
Company Guidance
During the Peabody Q2 2025 earnings call, the company provided updated guidance, citing several performance metrics. Peabody's President and CEO, Jim Grech, announced an increase in full-year guidance, highlighting record safety, solid volumes, and effective cost containment in the first half of the year. The company plans to accelerate longwall operations at its Centurion coal mine, targeting a start-up in February 2026, with workforce expansion underway. The guidance reflects anticipated net benefits of $15 million to $20 million from reduced federal royalty rates in the second half of 2025, and a 2.5% production tax credit for the Shoal Creek mine starting in 2026. U.S. thermal mines generated $57 million in adjusted EBITDA in the second quarter, while PRB volumes are expected to rise significantly, with adjusted costs expected to decrease. Seaborne thermal volumes are anticipated to increase by 200,000 tons, with costs $3 per ton lower than previously guided. Overall, the company expects robust margins despite challenging market conditions.

Peabody Energy Comm Financial Statement Overview

Summary
Peabody Energy shows a stable financial position with strong balance sheet metrics and robust cash flow generation. The income statement indicates challenges with declining revenue and profit margins, but operational efficiency remains healthy. Low leverage and a strong equity position provide financial flexibility.
Income Statement
75
Positive
Peabody Energy has shown a mixed performance in its income statement. The gross profit margin for the TTM is approximately 17.08%, indicating a reasonable level of profitability. The net profit margin for the TTM stands at 8.72%, which is stable but shows a decline compared to previous years due to reduced revenue and profitability. The revenue growth rate from the previous year to TTM is negative, reflecting a decrease in total revenue. However, the EBIT and EBITDA margins are still healthy at 10.26% and 21.51%, respectively, demonstrating operational efficiency.
Balance Sheet
80
Positive
The balance sheet of Peabody Energy reveals financial stability with a low debt-to-equity ratio of 0.02, indicating minimal leverage and a strong equity position. The return on equity (ROE) for the TTM is 9.84%, showcasing the company's ability to generate returns on shareholders' investment, albeit at a lower rate than previous years. The equity ratio is 64.25%, reflecting a robust financial structure with a significant portion of assets funded by equity, which reduces financial risks.
Cash Flow
82
Very Positive
Peabody Energy's cash flow statement is strong, with a significant free cash flow generation. The free cash flow growth rate for the TTM is impressive at 73.19%, indicating effective cash management. The operating cash flow to net income ratio is 1.66, and the free cash flow to net income ratio is 0.97, both suggesting efficient cash conversion from earnings. The company maintains solid cash flow metrics, supporting ongoing operations and potential future investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.04B4.24B4.95B4.98B3.32B2.88B
Gross Profit578.20M815.80M1.56B1.69B765.20M356.20M
EBITDA632.30M954.90M1.51B1.79B907.00M-1.37B
Net Income138.70M370.90M759.60M1.30B360.10M-1.86B
Balance Sheet
Total Assets5.76B5.95B5.96B5.61B4.95B4.67B
Cash, Cash Equivalents and Short-Term Investments585.90M700.40M969.30M1.31B954.30M709.20M
Total Debt50.30M467.20M399.20M344.80M1.17B1.59B
Total Liabilities2.09B2.24B2.35B2.32B3.13B3.69B
Stockholders Equity3.67B3.65B3.55B3.23B1.76B929.60M
Cash Flow
Free Cash Flow194.40M204.00M687.20M949.40M236.90M-207.20M
Operating Cash Flow622.80M606.50M1.04B1.17B420.00M-9.70M
Investing Cash Flow-462.00M-598.10M-342.60M-28.70M-131.50M-206.70M
Financing Cash Flow-180.40M-276.00M-460.30M-681.60M-43.40M193.40M

Peabody Energy Comm Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.40
Price Trends
50DMA
15.94
Positive
100DMA
14.65
Positive
200DMA
16.22
Positive
Market Momentum
MACD
0.26
Positive
RSI
57.13
Neutral
STOCH
76.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTU, the sentiment is Positive. The current price of 17.4 is above the 20-day moving average (MA) of 17.08, above the 50-day MA of 15.94, and above the 200-day MA of 16.22, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTU.

Peabody Energy Comm Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.36B9.7428.59%4.05%-20.92%-26.59%
72
Outperform
$2.95B12.6312.59%11.86%-8.59%-55.01%
67
Neutral
$2.04B16.393.87%1.76%-5.83%-73.88%
66
Neutral
$1.50B43.10-5.55%1.92%-12.79%-134.14%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
64
Neutral
$3.00B74.051.95%0.57%-27.62%-90.48%
57
Neutral
$1.83B64.14-2.29%0.36%-29.63%-108.26%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BTU
Peabody Energy Comm
17.40
-3.21
-15.57%
ARLP
Alliance Resource
22.76
1.98
9.53%
NRP
Natural Resource PRN
103.96
21.46
26.01%
AMR
Alpha Metallurgical Resources
135.90
-61.14
-31.03%
METC
Ramaco Resources
24.98
16.35
189.46%
HCC
Warrior Met Coal
55.15
2.86
5.47%

Peabody Energy Comm Corporate Events

Business Operations and Strategy
Peabody Energy to Present at UBS Conference
Positive
Sep 3, 2025

Peabody Energy Corporation announced its participation in the UBS Global Materials Conference on September 3, 2025, where it plans to discuss its strategic focus and recent business developments. The company has achieved record safety and environmental performance in 2024 and is expanding its steelmaking coal production, particularly through its Centurion Mine, to meet rising demand in Asia, positioning itself for significant growth in the coming years.

M&A TransactionsBusiness Operations and Strategy
Peabody Energy Ends Acquisition After Mine Incident
Negative
Aug 19, 2025

On August 19, 2025, Peabody Energy Corporation announced the termination of its planned acquisition of Anglo American’s steelmaking coal assets due to a material adverse change following an ignition event at the Moranbah North Mine on March 31, 2025. The decision was made as no revised agreement was reached to address the long-term impacts of the event, which affected the most significant mine in the acquisition. Peabody will continue to focus on its strategy to create value from its existing asset portfolio, including the termination of the related Dawson Mine sale agreement with PT Bukit Makmur Mandiri Utama.

Executive/Board ChangesBusiness Operations and Strategy
Peabody Energy Appoints New Chief Commercial Officer
Positive
Aug 11, 2025

On August 11, 2025, Peabody Energy Corporation announced the appointment of Malcolm J. Roberts as the Executive Vice President and Chief Commercial Officer, effective September 1, 2025. Roberts, who has been with the company since 2021, will receive a comprehensive compensation package, including a base salary and incentive opportunities, as part of his new role. This strategic appointment is expected to strengthen Peabody Energy’s commercial operations and enhance its market positioning.

DividendsFinancial Disclosures
Peabody Energy Announces Quarterly Dividend Amid Net Loss
Neutral
Jul 31, 2025

On July 31, 2025, Peabody Energy announced a quarterly dividend of $0.075 per share, payable on September 3, 2025. The company reported a net loss of $27.6 million for the second quarter of 2025, a significant drop from the previous year’s profit. Despite lower pricing, Peabody achieved strong cost management and increased demand in the Powder River Basin, leading to improved margins. The company also raised its full-year volume guidance and lowered cost-per-ton targets, anticipating benefits from new federal legislation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025