Education
About Us
Working with TipRanks
Follow Us
Peabody Energy (BTU) (BTU)
:BTU
Top Page
Peabody Energy Comm
(NYSE:BTU)
76Outperform
Positive Factors
Earnings Performance
Peabody Energy reported 4Q adjusted EBITDA of $177M, beating the $168M consensus, driven by strong US thermal and seaborne thermal segment results.
Potential Acquisition Benefits
The acquisition of Anglo's assets is expected to improve Peabody's portfolio, leading to better profitability and free cash flow generation over time.
Negative Factors
Cost Concerns
Costs are broadly disappointing, coupled with a currently weak pricing environment.
Financing Uncertainty
The ongoing lack of financing structure clarity and the currently depressed coal pricing environment remain major headwinds in near term.
Peabody Energy Comm (BTU) vs. S&P 500 (SPY)
Market Cap
$1.56B
Dividend Yield2.34%
Average Volume (3M)6.00M
Price to Earnings (P/E)4.7
Beta (1Y)1.21
Revenue Growth-14.50%
EPS Growth-46.36%
CountryUS
Employees5,600
SectorEnergy
Sector Strength47
IndustryCoal
Share Statistics
EPS (TTM)2.69
Shares Outstanding121,567,314
10 Day Avg. Volume4,054,238
30 Day Avg. Volume6,004,691
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.34
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.25Price Target Upside73.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 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.78
Positive
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.85
Very Positive
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.82
Very Positive
| 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
Neutral
12.81
Price Trends
13.02
Negative
16.04
Negative
20.03
Negative
Market Momentum
-0.17
Negative
50.91
Neutral
51.24
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 12.81 is above the 20-day moving average (MA) of 12.14, below the 50-day MA of 13.02, and below the 200-day MA of 20.03, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.49B | 12.71 | 14.76% | 10.31% | -8.53% | -53.30% | |
76 Outperform | $1.56B | 4.74 | 10.41% | 2.34% | -14.50% | -46.36% | |
74 Outperform | $1.35B | 9.08 | 32.48% | 2.91% | -16.56% | -24.95% | |
73 Outperform | $1.65B | 8.91 | 11.64% | 0.36% | -14.81% | -71.49% | |
68 Neutral | $527.33M | 47.94 | 3.06% | 4.14% | -3.93% | -88.36% | |
67 Neutral | $2.49B | 9.90 | 5.20% | 0.68% | -9.10% | -47.93% | |
56 Neutral | $6.99B | 3.72 | -4.39% | 5.90% | -0.24% | -48.44% |
* Energy Sector Average
Performance Comparison
BTU
Peabody Energy Comm
12.81
-8.74
-40.56%
ARLP
Alliance Resource
27.16
5.94
27.99%
NRP
Natural Resource PRN
103.02
17.10
19.90%
AMR
Alpha Metallurgical Resources
126.69
-169.95
-57.29%
METC
Ramaco Resources
10.00
-5.00
-33.33%
HCC
Warrior Met Coal
47.39
-17.09
-26.50%
Peabody Energy Comm Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q4-2024)
| % Change Since: -28.40%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
Peabody Energy Corporation had a strong financial performance in 2024 with significant shareholder returns and strategic acquisitions. The company achieved record safety and environmental milestones and benefits from favorable US market tailwinds. However, challenges such as geological issues, a decline in China's steel consumption, new Chinese tariffs, and weather disruptions pose concerns.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Peabody Energy Corporation recorded a net income of $31 million in Q4 2024, contributing to a full-year net income of $371 million. The company also achieved an adjusted EBITDA of $872 million for the full year.
Significant Shareholder Returns
The company returned $221 million to shareholders in 2024 and has returned $600 million to shareholders since restarting its shareholder return program.
Record Safety and Environmental Achievements
Peabody set a new 140-plus year company record for the lowest accident rates, reclaimed 70% more land than disturbed, and freed up more than $100 million in reclamation bonding obligations.
Strategic Acquisition and Expansion
Peabody's acquisition of premium hard coking coal mines from Anglo American is progressing well, with expected synergies of $100 million a year post-acquisition. The Centurion mine shipped its first coal and is expected to produce 3.5 million tons in 2026.
US Coal Market Favorability
The US is experiencing strong policy and commercial tailwinds, including a 2% to 3% expected annual load growth and deferrals in retirement plans of coal units.
Negative Updates
Geological Challenges Impacting Production
Geological challenges at the Twenty Mile mine required operational adjustments, impacting production.
China's Steel Consumption Decline
China's apparent steel consumption declined by approximately 5% in 2024, affecting met coal demand and leading to a 30% increase in steel exports.
Impact of Chinese Tariffs
China imposed a new 15% tariff on US coal imports, affecting Peabody's competitiveness in the Chinese market.
Weather-Related Disruptions
Monsoonal rains in Queensland affected coal stacking and reclaiming operations at Dalrymple Bay, causing temporary outages.
Company Guidance
In the Peabody Energy Corporation Q4 2024 earnings call, significant guidance metrics were shared, reflecting a strong finish to the fiscal year and outlining ambitious plans for 2025. The company recorded a net income attributable to common stockholders of $31 million, or $0.25 per diluted share, and an adjusted EBITDA of $177 million for Q4. For the full year, net income reached $371 million, with an adjusted EBITDA of $872 million. Peabody Energy generated $613 million in operating cash flow from continuing operations and returned $221 million to shareholders. The company set a record for the lowest accident rates in its history and increased land reclamation by 70%, freeing up over $100 million in bonding obligations. Looking ahead, Peabody anticipates significant growth, with plans to ship 0.5 million tons from the Centurion mine in 2025, scaling up to 3.5 million tons in 2026 with longwall production. The completion of the acquisition of premium hard coking coal mines from Anglo American is expected next quarter, which will position three-fourths of the company's EBITDA in metallurgical coal by 2026. This acquisition is projected to add 11.3 million tons of saleable production by 2026 and generate $100 million in annual synergies. Seaborne thermal and metallurgical coal volumes are projected to increase, with costs expected to remain consistent with 2024 levels. The company aims for capital expenditures of $450 million in 2025, with a focus on advancing the Centurion mine and completing the Anglo acquisition, which remains on track with regulatory approvals progressing well.Peabody Energy Comm Corporate Events
Private Placements and FinancingM&A Transactions
Peabody Energy Reviews Acquisition Plans After Mine Incident
Negative
Apr 8, 2025
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.
M&A TransactionsBusiness Operations and Strategy
Peabody Energy to Present at BMO Metals Conference
Positive
Feb 24, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.