Peabody Energy Corp (BTU) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Peabody Energy's EV/EBITDA of 8.6 is above its 5-year median of 2.4.

P/B below the industry

Peabody Energy's price-to-book of 0.64 is below the Energy median of 1.49.

Trading below fair value

The share price of $16.91 is below our fair value estimate of $19.50.

Margin of safety under 20%

The price is 13.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -8.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 3.4% over the last twelve months; the Energy median is 1.9%.

Guidance raised

Peabody Energy raised its Third Quarter 2026 costs outlook on Jul 29, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was -5.2%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Low debt

Debt is 9.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 167% five years ago to 9.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 32.3% of total debt.

Interest not well covered

Operating income covers interest expense -3.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.84 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.70; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Peabody Energy paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Peabody Energy yields 1.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 6 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.