Peabody Energy Intrinsic Stock Value – Elliott Investment Management Sells 975,000 Shares of Peabody Energy Stock
November 30, 2023
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Elliott Investment Management, one of the largest 10% owners of Peabody Energy ($NYSE:BTU), has recently disclosed that it has sold 975,000 of its shares. Peabody Energy is a large coal and natural gas producer based in the United States. The company is engaged in coal mining, processing, and selling, as well as the production and sale of natural gas. Its mines are located in the United States, Indonesia, Australia, and China and it is the largest private-sector coal company in the world.
Peabody Energy also has investments in coal-based electricity generation in the US and Australia. Elliott Investment Management’s divestment from Peabody Energy follows a series of other divestment announcements from various companies around the world.
Market Price
On Wednesday, shares of PEABODY ENERGY opened at $24.0 and closed at $23.8, down by 0.7% from the previous closing price of 24.0. Elliott Investment Management, one of the leading investment management firms, announced the sale of their 975,000 shares of PEABODY ENERGY stock. This marks the latest development in PEABODY ENERGY’s stock, which has been on a downward trend for some time. Despite the decline, the company has been making steady progress in its business operations and is expected to emerge as a stronger entity in the coming days. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Peabody Energy. More…
| Total Revenues | Net Income | Net Margin |
| 5.34k | 1.2k | 23.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Peabody Energy. More…
| Operations | Investing | Financing |
| 1.42k | -264.4 | -925.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Peabody Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.72k | 2.21k | 26.04 |
Key Ratios Snapshot
Some of the financial key ratios for Peabody Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.8% | 83.7% | 28.3% |
| FCF Margin | ROE | ROA |
| 20.9% | 27.4% | 16.5% |
Analysis – Peabody Energy Intrinsic Stock Value
At GoodWhale, we have looked closely at PEABODY ENERGY‘s financials and come to the conclusion that the intrinsic value of their shares is approximately $22.7, as estimated by our proprietary Valuation Line. Currently, PEABODY ENERGY’s stock is being traded at a price of $23.8, which means that it is currently overvalued by 4.7%. Although the company’s financials look generally good, it is important to remember that when purchasing stocks, it is best to pay a fair price that properly reflects the value of the company. More…
Peers
In the coal industry, there is stiff competition among the top companies. Peabody Energy Corp, Alliance Resource Partners LP, CONSOL Energy Inc, and Arch Resources Inc are all vying for a piece of the pie. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to support.
– Alliance Resource Partners LP ($NASDAQ:ARLP)
Alliance Resource Partners LP is a leading producer and marketer of coal in the United States. The company has a market cap of $3.06 billion and a return on equity of 19.31%. Alliance Resource Partners LP is engaged in the business of mining, processing and selling coal to electric utilities and metallurgical coal customers. The company operates mines in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, Virginia and West Virginia.
– CONSOL Energy Inc ($NYSE:CEIX)
CONSOL Energy Inc. is a coal and natural gas company. It has a market cap of 2.2B as of 2022 and a ROE of 40.18%. The company has a diversified portfolio of high-quality assets including the Marcellus Shale, the Utica Shale, the Barnett Shale, and the Appalachian Basin. The company is committed to providing safe and reliable energy to its customers and is one of the largest producers of both coal and natural gas in the United States.
– Arch Resources Inc ($NYSE:ARCH)
Arch Resources, Inc. operates as a metallurgical coal and thermal coal producer for the steel and power generation industries. It owns and operates coal mines in Wyoming, Colorado, West Virginia, Kentucky, Virginia, and Illinois. As of December 31, 2020, the company had estimated recoverable reserves of 1.1 billion tons of coal. Arch Resources, Inc. was founded in 1969 and is headquartered in St. Louis, Missouri.
Summary
Elliott Investment Management, a major investor in Peabody Energy, recently sold 975,000 shares of the company, representing 10% of its total ownership. This could signal that Elliott is not optimistic about the future prospects of Peabody Energy and is looking to reduce its stake in the company. For potential investors, this could be a sign of caution and further research should be done before investing in Peabody Energy. The company’s financials should be closely examined, with particular attention paid to its debt level, cash flow, and competitive position.
In addition, investors should consider the industry outlook for coal producers and the potential effects of environmental regulations. This news should be taken into consideration when conducting an investment analysis of Peabody Energy.
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