Peabody Energy Comm (BTU) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: 2.26%
• Average Volume (3M): 4.42M
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.17
• Revenue Growth: -7.42%
• EPS Growth: -26.06%
• Country: US
• Employees: 5,600
• Sector: Energy
• Sector Strength: 55
• Industry: Coal
• EPS (TTM): 0.27
• Shares Outstanding: 121,600,000
• 10 Day Avg. Volume: 3,585,702
• 30 Day Avg. Volume: 4,420,115
• PEG Ratio: 0.02
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.95
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 0.69
• 1Y Price Target: $19.75
• Price Target Upside: 44.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $15.00 ▲(9.97%Upside)

Peabody Energy's overall stock score reflects strong financial management and strategic cost control, which are key strengths. However, technical analysis and valuation indicate some caution, and acquisition uncertainties present notable risks. The company's focus on maintaining market positioning and operational efficiency is positive, but the declining revenue and profitability margins need addressing to sustain long-term growth.

Positive Factors

Earnings

Peabody Energy reported 1Q adjusted EBITDA of $144M, topping the $93M consensus and the $107M estimate due to strong operating performance.

Financial Performance

Non-segmental operating EBITDA increased from a net negative to a net positive, indicating improved financial performance.

Operational Performance

Seaborne met sales are anticipated to grow as Shoal Creek and CMJV return to full production, indicating potential for improved future performance.

Negative Factors

Acquisition Uncertainty

There is uncertainty around Peabody Energy's purchase of Anglo American's met coal assets due to a recent Material Adverse Change declaration.

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 Conditions

The lackluster pricing environment remains a headwind for Peabody.

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 mining and sale of coal. The company operates several surface and underground mining complexes, which produce different grades of thermal and metallurgical coal. Thermal coal is sold mainly to electricity generators, while metallurgical coal is supplied to steel manufacturers. Peabody's revenue model relies on long-term coal supply agreements with utility companies and industrial customers, ensuring steady cash flow. Additionally, the company may enter into strategic partnerships and joint ventures to optimize its mining operations and expand market reach. Factors such as coal pricing, production volumes, and operational efficiency significantly influence Peabody's earnings.

Peabody Energy Comm Financial Statement Overview

Summary

Peabody Energy demonstrates solid financial management with a strong balance sheet and effective cash flow handling. However, the declining revenue and profitability margins are areas of concern, reflecting challenges in maintaining growth momentum. The low debt levels and substantial equity provide a buffer against market fluctuations, but the company must address its declining top-line growth.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.19B	4.24B	4.95B	4.98B	3.32B	2.88B
	Gross Profit
715.60M	815.80M	1.56B	1.69B	765.20M	356.20M
	EBIT
429.90M	445.30M	1.07B	1.38B	432.20M	-178.80M
	EBITDA
901.30M	954.90M	1.51B	1.79B	907.00M	-1.37B
	Net Income Common Stockholders
365.70M	370.90M	759.60M	1.30B	360.10M	-1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
696.50M	700.40M	969.30M	1.31B	954.30M	709.20M
	Total Assets
5.78B	5.95B	5.96B	5.61B	4.95B	4.67B
	Total Debt
70.90M	467.20M	399.20M	344.80M	1.17B	1.59B
	Net Debt
-625.60M	-233.20M	-570.10M	-962.50M	210.70M	880.70M
	Total Liabilities
2.07B	2.24B	2.35B	2.32B	3.13B	3.69B
	Stockholders Equity
3.72B	3.65B	3.55B	3.23B	1.76B	929.60M
Cash Flow		Free Cash Flow
272.00M	204.00M	687.20M	949.40M	236.90M	-207.20M
	Operating Cash Flow
844.50M	606.50M	1.04B	1.17B	420.00M	-9.70M
	Investing Cash Flow
-801.70M	-598.10M	-342.60M	-28.70M	-131.50M	-206.70M
	Financing Cash Flow
-177.40M	-276.00M	-460.30M	-681.60M	-43.40M	193.40M

Peabody Energy Comm Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTU, the sentiment is Neutral. The current price of 13.64 is below the 20-day moving average (MA) of 13.66, above the 50-day MA of 13.12, and below the 200-day MA of 18.74, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BTU.

Peabody Energy Comm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTU	76 Outperform	$1.68B	5.18	10.33%	2.26%	-7.42%	-26.06%
ARLP	76 Outperform	$3.31B	12.20	14.71%	10.87%	-8.53%	-53.44%
METC	70 Outperform	$532.94M	43.10	-0.08%	2.68%	-10.23%	-100.04%
NRP	70 Neutral	$1.27B	9.12	31.98%	3.10%	-19.21%	-30.92%
HCC	62 Neutral	$2.47B	23.24	5.20%	0.68%	-21.04%	-75.78%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
AMR	53 Neutral	$1.45B	54.65	1.66%	0.36%	-23.34%	-95.18%

Peabody Energy Comm Corporate Events

Peabody Energy Joins B. Riley Investor Conference

Peabody Energy Corporation announced its participation in the B. Riley Investor Conference starting May 21, 2025, where it plans to present its strategic focus and recent business developments. The company highlighted its record safety and environmental performance in 2024, with the lowest incident rate in its history and significant reclamation efforts. Peabody is capitalizing on favorable megatrends, expecting to grow its steelmaking coal Adjusted EBITDA significantly by 2026, driven by increased demand in Southeast Asia. The company is also advancing its Centurion Mine project, which is expected to transform its seaborne metallurgical coal segment with a longwall startup projected for Q1 2026.

The most recent analyst rating on (BTU) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Peabody Energy Comm stock, see the BTU Stock Forecast page.

Peabody Energy Comm Holds Annual Stockholders Meeting

On May 8, 2025, Peabody Energy Corporation held its Annual Meeting of Stockholders, where all nine directors were elected for a one-year term. The meeting also saw the advisory approval of the executive officers’ compensation and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (BTU) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Peabody Energy Comm stock, see the BTU Stock Forecast page.

Peabody Energy Announces Quarterly Dividend Amid Strong Results

On May 6, 2025, Peabody Energy announced a quarterly dividend of $0.075 per share, payable on June 4, 2025. The company reported strong first-quarter results with a net income of $34.4 million and an Adjusted EBITDA of $144 million, despite challenges from low seaborne coal prices. Peabody’s strategic moves, including a seven-year coal supply contract and participation in a White House event supporting coal industry revitalization, highlight its focus on maintaining favorable market positioning and operational efficiency.

Peabody Energy Faces Acquisition Uncertainty Due to Mine Issues

On May 5, 2025, Peabody Energy Corporation announced a Material Adverse Change impacting its planned acquisition of steelmaking coal assets from Anglo American Plc. The change is due to issues at the Moranbah North Mine, which has been inactive since a gas ignition event on March 31, 2025. This situation has created significant uncertainty around the transaction, and if unresolved, Peabody may terminate the acquisition agreements.

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.