Peabody Energy Corporation (BTU) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Peabody Energy Corporation (BTU) Energy Operations & Outlook

Peabody Energy Corporation, founded in 1883, is a leading coal producer supplying thermal and metallurgical coal to a global market, including electricity generators and steel manufacturers. Operating primarily in the United States and Australia, Peabody manages extensive coal reserves and transportation services, navigating a complex energy landscape.

What Is the Investment Thesis for BTU?

Peabody Energy Corporation presents a complex investment case, balancing its role as a major coal producer with the global shift towards cleaner energy sources. With a market capitalization of $3.54B and a P/E ratio of 6.92, Peabody's financial performance reflects the cyclical nature of the coal industry. Key value drivers include the sustained demand for metallurgical coal in steel production and thermal coal in certain energy markets, particularly in Asia. The company's extensive coal reserves and strategic mining operations in the United States and Australia provide a degree of stability. However, potential investors must consider the risks associated with environmental regulations, fluctuating coal prices, and the increasing adoption of renewable energy technologies. Peabody's dividend yield of 1.27% may attract income-seeking investors, but the company's negative profit margin of -3.1% warrants careful evaluation. Upcoming catalysts include potential infrastructure developments in Asia that could increase coal demand, while ongoing risks involve stricter environmental policies and carbon emission reduction targets.

Based on FMP financials and quantitative analysis

BTU Key Highlights

Market Cap of $3.54B reflects Peabody Energy's significant presence in the coal mining industry.

• P/E ratio of 6.92 indicates investor valuation relative to earnings, influenced by coal market dynamics.
• Gross Margin of 3.5% demonstrates the company's efficiency in converting revenue into profit after direct costs.
• Dividend Yield of 1.27% provides a modest return to shareholders, balancing growth and income.
• Beta of 0.62 suggests lower volatility compared to the overall market, potentially appealing to risk-averse investors.

Who Are BTU's Competitors?

BTU is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BTU's Key Strengths?

Large reserves of both thermal and metallurgical coal.

• Strategic locations of mining operations in the US and Australia.
• Established relationships with key customers.
• Involvement in transportation and trading services.

What Are BTU's Weaknesses?

Exposure to fluctuating coal prices.

• Vulnerability to increasingly stringent environmental regulations.
• Negative profit margin of -3.1%.
• Dependence on coal, a declining energy source in some markets.

What Could Drive BTU Stock Higher?

Potential infrastructure developments in Asia increasing metallurgical coal demand.

• Sustained demand for metallurgical coal in steel production.
• Expansion of energy demand in developing Asian economies.

What Are the Key Risks for BTU?

Negative return on equity (-3.4%) — the business is not currently generating profit on shareholder capital.

• Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Increasingly stringent environmental regulations impacting coal mining operations.
• Fluctuations in global coal prices affecting profitability.
• Increasing adoption of renewable energy sources reducing thermal coal demand.
• Geopolitical risks affecting coal exports and international operations.

What Are the Growth Opportunities for BTU?

• Increased Metallurgical Coal Demand: The ongoing demand for metallurgical coal in steel production, particularly in developing economies, presents a significant growth opportunity for Peabody Energy. As infrastructure projects and manufacturing activities expand in regions like India and Southeast Asia, the need for steel, and consequently metallurgical coal, is expected to rise. Peabody's strategic mining operations in Australia, which produce high-quality metallurgical coal, position the company to capitalize on this trend. This demand could see sustained growth over the next 5-10 years, offering a stable revenue stream.
• Expansion in Asian Markets: Peabody Energy can leverage the growing energy demand in Asian countries, particularly in regions where coal remains a significant part of the energy mix. By strengthening partnerships with local power plants and industrial facilities, Peabody can increase its coal exports to these markets. This expansion requires navigating complex regulatory environments and addressing environmental concerns, but the potential for long-term growth is substantial. The timeline for significant market penetration is estimated at 3-5 years, contingent on infrastructure development and policy support.
• Adoption of Carbon Capture Technologies: Investing in carbon capture, utilization, and storage (CCUS) technologies represents a strategic growth opportunity for Peabody Energy. By implementing CCUS at its coal mining operations and power plants, the company can reduce its carbon footprint and comply with increasingly stringent environmental regulations. This move can also enhance Peabody's reputation and attract environmentally conscious investors. The widespread adoption of CCUS technologies is expected to occur over the next 5-7 years, driven by government incentives and technological advancements.
• Diversification into Transportation Services: Peabody Energy's engagement in direct and brokered trading of coal and freight-related contracts, along with its provision of transportation-related services, offers a pathway for diversification and revenue enhancement. By expanding its transportation infrastructure and logistics capabilities, Peabody can capture a larger share of the value chain and reduce its reliance on coal sales alone. This diversification strategy can provide a more stable and predictable revenue stream, mitigating the risks associated with fluctuating coal prices. The timeline for significant progress in this area is estimated at 2-3 years.
• Strategic Acquisitions and Partnerships: Peabody Energy can pursue strategic acquisitions and partnerships to expand its mining operations and access new markets. By acquiring smaller coal mining companies or forming joint ventures with established players, Peabody can increase its production capacity and geographic reach. These strategic moves can also provide access to new technologies and expertise, enhancing the company's competitiveness. The timeline for successful acquisitions and partnerships varies depending on market conditions and regulatory approvals, but the potential for long-term growth is significant.

What Are BTU's Competitive Advantages?

• Extensive coal reserves provide a significant competitive advantage.
• Strategic mining operations in the United States and Australia.
• Long-standing relationships with key customers in the energy and steel industries.

What Does BTU Do?

Founded in 1883, Peabody Energy Corporation has evolved into a major player in the global coal mining industry. The company focuses on mining, preparation, and sale of both thermal and metallurgical coal, catering to diverse sectors such as electric utilities, industrial facilities, and steel manufacturers. Peabody operates through four primary segments: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining. These segments encompass a range of activities from mining bituminous and sub-bituminous coal deposits to producing hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. With interests in 17 coal mining operations across the United States and Australia, Peabody holds approximately 2.5 billion tons of proven and probable coal reserves and controls around 450,000 acres of surface property through ownership and lease agreements as of December 31, 2021. Beyond mining, Peabody engages in direct and brokered trading of coal and freight-related contracts, offering transportation-related services to enhance its market reach. Headquartered in St. Louis, Missouri, Peabody Energy continues to adapt to the evolving energy market while maintaining its position as a key coal supplier.

What Products and Services Does BTU Offer?

• Mines and prepares thermal coal for electric utilities.
• Extracts bituminous and sub-bituminous coal deposits.
• Produces metallurgical coal for steel manufacturers.
• Supplies coal to electricity generators and industrial facilities.
• Engages in direct and brokered trading of coal and freight contracts.
• Provides transportation-related services.

How Does BTU Make Money?

• Generates revenue through the sale of thermal and metallurgical coal.
• Operates through four segments: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining.
• Engages in direct and brokered trading of coal and freight-related contracts.

What Industry Does BTU Operate In?

Peabody Energy Corporation operates within the coal industry, a sector undergoing significant transformation due to environmental concerns and the rise of renewable energy sources. The global coal market is characterized by fluctuating prices and varying demand across different regions, with Asia remaining a key consumer. Competitors like Core Natural Resources, Inc. and Solaris Energy Infrastructure, Inc. also navigate these market dynamics. Despite the overall decline in coal consumption in some regions, metallurgical coal remains crucial for steel production, providing a degree of stability for companies like Peabody. The industry faces increasing pressure to adopt cleaner technologies and reduce carbon emissions, influencing long-term growth prospects.

Who Are BTU's Key Customers?

• Electric utilities that use thermal coal for power generation.
• Industrial facilities that require coal for various processes.
• Steel manufacturers that utilize metallurgical coal.

Peabody Energy Corporation (BTU) Valuation Context

Valued at $3.54B, BTU is classified as a mid-cap stock. Analyst price targets span from $36.50 to $36.50, with a consensus of $36.50. At the current price of $29.03, that implies approximately 26% upside potential. Relative to its peer group, BTU's quantitative score of 48/100 is roughly in line with the peer average of 58/100.

BTU Revenue & Earnings Trend

In Q2 FY2026, BTU generated $1.00B in top-line revenue, marking a sequential increase of 3.1%. The company recorded a net loss of $90.6M, with diluted EPS of $-0.74. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Energy. Across the four most recent quarters, BTU averaged $-0.37 in diluted EPS.

Company Profile

Peabody Energy Corporation operates in the Coal industry within the Energy sector. It is headquartered in Saint Louis, US. The company is led by CEO James C. Grech. BTU has traded publicly since 2017.

Return on equity for Peabody Energy Corporation stands at -3.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 4.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.87 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -4.2%, the inverse of the P/E and a quick read on earnings relative to price.

Peabody Energy Corporation's Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 2.13 places it in the grey zone, a middle ground that warrants monitoring.

Peabody Energy Corporation has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 381.3% below estimates on average.

Over the past six months, Peabody Energy Corporation insiders filed 37 SEC Form 4 transactions — 2 sales and 35 purchases. On net that is roughly 43K shares acquired (about $131K) — insiders putting money in tends to read as conviction.

BTU Financials

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BTU Analyst Consensus

BTU MoonshotScore

What Investors Ask About Peabody Energy Corporation (BTU) — Energy

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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