Peabody Energy Corp (BTU) Stock Analysis
Verdict: WATCH (do not buy)
Deteriorating margins and operational EPS misses cap short-term upside, despite balance sheet cash and 13.4% FCF yield.
Investment score: 47/100
Analysis as of
Is Peabody Energy Corp stock worth reviewing? The TradeMates thesis
The model holds a neutral stance on BTU at $27.64. Strong liquidity ($575.3M cash) and attractive FCF yield (13.4%) are counteracted by negative short-term earnings momentum and margin contraction.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Peabody Energy Corp opportunities and risks
What speaks for BTU
- Robust Free Cash Flow Yield of 13.4% and Strong Balance Sheet
What speaks against BTU
- Severe Margin Compression and Operational Profitability Loss
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| BTU | n/a | 0.8x | 11.5x | 2.2% | -4.6% | 13.4% |
| CNR | 47.4x | 1.1x | 6.6x | 2.3% | 2.3% | 5.5% |
| ARLP | 12.6x | 1.5x | 5.9x | 24.4% | 12.3% | 10.5% |
| UUUU | n/a | 29.0x | n/a | 43.2% | -77.3% | -3.6% |
| LEU | 60.1x | 6.0x | 29.8x | 23.3% | 10.2% | -7.8% |
| NRP | 13.8x | 7.5x | 10.5x | 81.6% | 54.0% | 11.0% |
| Peer median | 13.8x | 6.0x | 6.6x | 24.4% | 10.2% | 5.5% |
Frequently asked questions about Peabody Energy Corp (BTU)
Is BTU stock a good investment?
The TradeMates model rates Peabody Energy Corp as WATCH (do not buy) with an investment score of 47/100. The model holds a neutral stance on BTU at $27.64. Strong liquidity ($575.3M cash) and attractive FCF yield (13.4%) are counteracted by negative short-term earnings momentum and margin contraction. This is algorithmic model output, not personal investment advice.
Is BTU stock a buy?
The TradeMates model verdict for BTU is WATCH (do not buy) with an investment score of 47/100. Treat this as a model signal to review, not a personal buy recommendation.