Peabody Energy Comm (BTU) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 1%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -7.21%
• EPS Growth: -106.39%
• Country: US
• Employees: 5,600
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.57
• Shares Outstanding: 121,600,000
• 10 Day Avg. Volume: 3,035,564
• 30 Day Avg. Volume: 2,738,327
• PEG Ratio: -0.16
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 12.84
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 7.07
• Enterprise Value/Ebitda: 6.78
• 1Y Price Target: $30.93
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $32.00 ▲(6.35% Upside)

Peabody Energy's overall score reflects a mix of financial challenges and operational strengths. The company's stable balance sheet and positive earnings call insights are offset by valuation concerns and financial losses. Technical indicators suggest moderate bullish momentum, while corporate events provide leadership stability but also legal risks.

Positive Factors

Leadership Stability

The extension of CEO James Grech's tenure until 2028 ensures leadership continuity, which is crucial for executing long-term strategic plans and maintaining operational stability.

Positive U.S. Thermal Coal Market Trends

Increased U.S. electricity demand and higher coal plant utilization support Peabody's thermal coal segment, providing a stable revenue stream and enhancing market position.

Centurion Mine Development

The Centurion mine development is expected to significantly boost Peabody's metallurgical coal output, enhancing its competitive edge and long-term profitability.

Negative Factors

Declining Revenue and Profitability

A negative net profit margin and declining revenue indicate operational challenges, potentially impacting Peabody's ability to sustain growth and profitability.

Cash Flow Decline

Reduced cash flow efficiency limits Peabody's ability to invest in growth opportunities and manage debt, potentially affecting financial health and strategic flexibility.

Legal Risks

Ongoing arbitration with Anglo American poses legal risks and potential financial liabilities, which could impact Peabody's financial stability and reputation.

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 generates revenue primarily through the sale of coal products, which are divided into thermal coal for electricity generation and metallurgical coal for steel production. The company benefits from long-term contracts and spot market sales, allowing it to capitalize on fluctuating coal prices. Key revenue streams include sales from its U.S. operations, particularly in the Powder River Basin and the Illinois Basin, as well as its Australian operations. Additionally, Peabody has established significant partnerships with utilities and steel manufacturers, which provide a steady demand for its coal. Factors contributing to its earnings include global coal demand, pricing dynamics in energy markets, and regulatory environments affecting coal usage. Peabody also focuses on cost management and operational efficiencies to enhance profitability.

Peabody Energy Comm Financial Statement Overview

Summary

Peabody Energy is facing financial challenges with declining revenues and profitability, as indicated by a negative net profit margin and reduced operational efficiency. However, the balance sheet remains stable with low leverage, which is a positive aspect.

Income Statement

The income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin of -0.83%, reflecting a challenging period for the company. Gross profit margin has decreased significantly from previous years, and revenue growth is negative, indicating a contraction in sales. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio of 0.115, indicating conservative leverage. However, the return on equity is negative in the TTM period, reflecting recent profitability challenges. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 54.99% in the TTM period. The operating cash flow to net income ratio is 0.67, indicating some cash generation capability despite net losses. The free cash flow to net income ratio is positive, but lower than previous years, reflecting reduced cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.96B	4.24B	4.95B	4.98B	3.32B	2.88B
Gross Profit	434.90M	815.80M	1.56B	1.69B	765.20M	356.20M
EBITDA	453.60M	954.90M	1.51B	1.79B	907.00M	-1.37B
Net Income	-32.70M	370.90M	759.60M	1.30B	360.10M	-1.87B
Balance Sheet
Total Assets	5.74B	5.95B	5.96B	5.61B	4.95B	4.67B
Cash, Cash Equivalents and Short-Term Investments	603.30M	700.40M	969.30M	1.31B	954.30M	709.20M
Total Debt	407.60M	467.20M	399.20M	361.60M	1.18B	1.67B
Total Liabilities	2.16B	2.24B	2.35B	2.32B	3.13B	3.69B
Stockholders Equity	3.54B	3.65B	3.55B	3.23B	1.76B	929.60M
Cash Flow
Free Cash Flow	87.50M	204.00M	687.20M	949.40M	236.90M	-207.20M
Operating Cash Flow	533.20M	606.50M	1.04B	1.17B	420.00M	-9.70M
Investing Cash Flow	-609.60M	-598.10M	-342.60M	-28.70M	-131.50M	-206.70M
Financing Cash Flow	-81.00M	-276.00M	-460.30M	-681.60M	-43.40M	193.40M

Peabody Energy Comm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 30.09 is above the 20-day moving average (MA) of 27.95, above the 50-day MA of 29.00, and above the 200-day MA of 19.12, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 51.23 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	72 Outperform	$3.00B	12.35	13.07%	11.10%	-9.45%	-46.37%
HCC	69 Neutral	$4.46B	127.15	1.67%	0.37%	-23.25%	-90.78%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BTU	61 Neutral	$3.47B	-103.87	-0.87%	1.00%	-7.21%	-106.39%
AMR	59 Neutral	$2.55B	-57.83	-2.87%	―	-32.53%	-112.77%
CNR	57 Neutral	$4.29B	-214.29	-1.64%	0.45%	64.05%	-103.03%
METC	52 Neutral	$882.00M	―	-7.40%	3.32%	-16.99%	-184.02%

Peabody Energy Comm Corporate Events

Peabody Energy Extends CEO James Grech’s Tenure and Role

Peabody Energy Corporation announced that its president and chief executive officer, James C. Grech, who is approaching retirement eligibility, will remain as CEO and a member of the board until May 15, 2028, under a Transition and Consulting Agreement effective December 17, 2025, after which he will serve in an advisory role until May 15, 2030. The agreement provides for continued salary, incentives, and benefits through the transition date, extended vesting of long-term incentive awards through the consulting period, and an annual consulting fee of $1.5 million, reflecting the board’s intent to retain Grech’s expertise for a smooth leadership transition and indicating that the move is part of planned succession rather than any disagreement over company operations or policies.

Peabody Energy Appoints Hodges and Walker to Board

On November 19, 2025, Peabody Energy Corporation appointed Georganne Hodges and Clayton Walker to its Board of Directors, with terms expiring at the 2026 Annual Meeting of Stockholders. Ms. Hodges and Mr. Walker bring extensive experience in energy and mining, expected to enhance the board’s expertise and perspectives. This strategic move is anticipated to strengthen Peabody’s industry positioning and operational oversight.

Peabody Energy Announces Q3 2025 Dividend Amid Loss

On October 30, 2025, Peabody Energy announced a quarterly dividend of $0.075 per share, payable on December 3, 2025. The company reported a net loss of $70.1 million for Q3 2025, attributed to costs from a terminated acquisition, but achieved an adjusted EBITDA of $99.5 million, driven by increased revenues and improved coal shipment volumes. Peabody is advancing its rare earth initiative and benefiting from favorable U.S. policies supporting coal-fueled plants.

Peabody Energy Updates By-Laws for Governance Clarity

On October 14, 2025, Peabody Energy Corporation’s Board of Directors amended and restated the company’s by-laws, which became effective the same day. The changes include new procedures and disclosure requirements for director nominations and stockholder meeting proposals, as well as clarifications on meeting conduct and the addition of a severability provision. These updates aim to streamline governance and enhance transparency in the company’s operations.

Peabody Energy Faces Arbitration with Anglo American

Peabody Energy Corporation announced that Anglo American Plc has initiated arbitration proceedings following the termination of purchase agreements related to Anglo’s steelmaking coal assets. Peabody asserts that a material adverse change justified the termination and has requested the return of the remaining $46 million of the initial $75 million deposit, after Anglo returned $29 million.