Peabody Energy Comm (BTU) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: 1.16%
• Average Volume (3M): 4.54M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.26
• Revenue Growth: -5.83%
• EPS Growth: -73.88%
• Country: US
• Employees: 5,600
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.22
• Shares Outstanding: 121,600,000
• 10 Day Avg. Volume: 5,373,744
• 30 Day Avg. Volume: 4,538,009
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 2.36
• 1Y Price Target: $19.72
• Price Target Upside: -23.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $18.00 ▼(-30.26% Downside)

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

Balance Sheet Strength

Peabody Energy's minimal leverage indicates low financial risk, providing stability and flexibility for future investments and growth initiatives.

Cash Flow Generation

Strong cash flow growth enhances Peabody's ability to invest in operations, reduce debt, and return value to shareholders, supporting long-term financial health.

Legislative Benefits

The reduction in federal royalty rates improves profitability and cash flow, providing a competitive advantage and enhancing Peabody's financial outlook.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining sales momentum, which could affect long-term profitability and market position if not addressed.

Seaborne Metallurgical Segment Loss

Losses in the Seaborne Metallurgical segment highlight operational challenges and market pressures, potentially impacting Peabody's overall profitability.

Termination of Acquisition

Ending the acquisition limits Peabody's expansion opportunities in steelmaking coal, potentially affecting strategic growth and market diversification.

Peabody Energy Comm Business Overview & Revenue Model

Company Description

Peabody Energy Corporation (BTU) is a leading global coal producer, primarily focused on the extraction and sale of coal used for electricity generation and steel production. The company operates in the United States and Australia, managing a range of mining operations that include both surface and underground mines. Peabody's core products include thermal coal, which is used for power generation, and metallurgical coal, which is essential for steel production. With a commitment to sustainable mining practices and innovation, Peabody Energy aims to meet the world's evolving energy needs while maintaining environmental stewardship.

How the Company Makes Money

Peabody 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	4.24B	4.95B	4.98B	3.32B	2.88B
Gross Profit	578.20M	815.80M	1.56B	1.69B	765.20M	356.20M
EBITDA	632.30M	954.90M	1.51B	1.79B	907.00M	-1.37B
Net Income	138.70M	370.90M	759.60M	1.30B	360.10M	-1.86B
Balance Sheet
Total Assets	5.76B	5.95B	5.96B	5.61B	4.95B	4.67B
Cash, Cash Equivalents and Short-Term Investments	585.90M	700.40M	969.30M	1.31B	954.30M	709.20M
Total Debt	50.30M	467.20M	399.20M	344.80M	1.17B	1.59B
Total Liabilities	2.09B	2.24B	2.35B	2.32B	3.13B	3.69B
Stockholders Equity	3.67B	3.65B	3.55B	3.23B	1.76B	929.60M
Cash Flow
Free Cash Flow	194.40M	204.00M	687.20M	949.40M	236.90M	-207.20M
Operating Cash Flow	622.80M	606.50M	1.04B	1.17B	420.00M	-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	-43.40M	193.40M

Peabody Energy Comm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 25.81 is above the 20-day moving average (MA) of 19.64, above the 50-day MA of 17.83, and above the 200-day MA of 15.91, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 86.68 is Negative, neither overbought nor oversold. The STOCH value of 95.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTU.

Peabody Energy Comm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	73 Outperform	1.36B	9.63	2.97%	4.08%	-20.92%	-26.59%
ARLP	72 Outperform	3.12B	13.09	13.16%	11.10%	-8.59%	-55.01%
BTU	67 Neutral	$2.80B	22.52	3.87%	1.16%	-5.83%	-73.88%
METC	67 Neutral	2.02B	-90.13	-5.70%	1.44%	-12.79%	-134.14%
HCC	64 Neutral	3.28B	80.64	1.94%	0.51%	-27.62%	-90.48%
AMR	57 Neutral	2.16B	-58.05	-2.31%	―	-29.63%	-108.26%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Peabody Energy Comm Corporate Events

Peabody Energy to Present at UBS Conference

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.

Peabody Energy Ends Acquisition After Mine Incident

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.

Peabody Energy Appoints New Chief Commercial Officer

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.

Peabody Energy Announces Quarterly Dividend Amid Net Loss

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.