Peabody Energy Corporation

Valuation Analysis

About the Company

Peabody Energy Corporation engages in the production of metallurgical and thermal coal. It operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, and Other U.S. Thermal segments. The company operates mines in New South Wales and Queensland in Australia and in Alabama and Wyoming in the United States; mining, preparation, and sale of thermal coal, sold primarily to electric utilities; surface mining extraction processes, coal with a lower sulfur content, and Btu; and mining sub-bituminous coal deposits. It also supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.

Peabody Energy Corporation Stock at a Glance

Peabody Energy Corporation (BTU) is currently trading at $27.40 with a market capitalization of $3.3B. The 52-week range spans from $12.58 to $41.14; the current price is 33.4% below the yearly high. Year-over-year revenue growth stands at +3.9%.

💰 Dividend

Peabody Energy Corporation pays an annual dividend of $0.30 per share, representing a yield of 1.09%. The payout ratio stands at 27.52%.

📊 Analyst Rating

6 analysts rate Peabody Energy Corporation (BTU) on consensus: None. The average price target is $34.33, implying +25.3% from the current price. Analyst price targets range from $30.00 to $40.00.

Peabody Energy Corporation: The Investment Case in Detail

Peabody Energy Corporation (BTU) operates in the Energy — specifically Thermal Coal — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue growth has slowed to just 3.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. Short interest sits at 15.53% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

The EV/EBITDA multiple of 9.91x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The analyst consensus price target implies 25.3% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (15.53%).

Trading Data

💵 Dividend Info

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