Peabody Energy Intrinsic Stock Value – Peabody Energy: Market Outlook Points to a ‘Hold’ Rating
June 26, 2023
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Peabody Energy ($NYSE:BTU) is a leading international coal company and one of the world’s largest publicly traded coal producers. With the current coal market outlook, Peabody Energy is rated as a Hold. The Coal Market Outlook is a comprehensive overview of the coal market in the US and abroad. It provides an analysis of the current market prices, supply and demand dynamics, and production trends.
Additionally, it includes a detailed look into the future of the coal industry, making it a valuable resource for investors to make informed decisions. In light of this information, Peabody Energy is rated as a Hold. Factors such as a weakening global economy, reduced demand from China, and increased worldwide competition are expected to keep coal prices low for the foreseeable future. As such, investing in Peabody Energy stock carries with it some risk. Investors should thus approach this stock with caution until the market outlook improves.
Market Price
On Tuesday, Peabody Energy (PEABODY ENERGY) stock opened at $20.6 and closed at $20.3, down 2.0% from the previous closing price of 20.7. The market outlook for the company is looking rather flat, with analysts mostly advocating a “Hold” rating for the stock. Analysts’ views are largely in line with the current market sentiment, which is trending towards sideways movement. In the near term, the outlook does not appear to be improving for PEABODY ENERGY, and investors should exercise caution before making any long-term commitments. 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 |
| 5.65k | 1.69k | 30.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Peabody Energy. More…
| Operations | Investing | Financing |
| 1.83k | -122.4 | -852.8 |
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 |
| 5.8k | 2.27k | 24.01 |
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 |
| 10.3% | 203.7% | 34.0% |
| FCF Margin | ROE | ROA |
| 28.1% | 35.8% | 20.7% |
Analysis – Peabody Energy Intrinsic Stock Value
At GoodWhale, we have conducted a financial analysis of PEABODY ENERGY. After careful examination of the company’s financials, we have concluded that the fair value of its stock is around $18.5. This value was calculated by our proprietary Valuation Line. At the moment, PEABODY ENERGY shares are trading at $20.3, which is a fair price overvalued by 9.6%. More…
Peers
In the coal industry, there is stiff competition among the top companies. Peabody Energy Corp, Alliance Resource Partners LP, CONSOL Energy Inc, and Arch Resources Inc are all vying for a piece of the pie. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to support.
– Alliance Resource Partners LP ($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
Peabody Energy is a coal producer and leading global energy company. As the industry faces a challenging market outlook, investors should exercise caution when considering an investment in Peabody Energy. Analysts anticipate continued volatility in the stock due to the cyclical nature of the coal market and unpredictable factors such as weather and geopolitical events.
As a result, for investors looking for a long-term hold, Peabody Energy may not be the best choice. Instead, investors should consider other stocks that could perform better in the short-term.
