Texas School Fund Increases Investment in Peabody Energy by 12% in Second Quarter

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Peabody Energy ($NYSE:BTU) Co. is a leading global energy company, providing essential fuels and products to meet the growing energy needs of the world. The Texas Permanent School Fund Corp, a public education endowment, increased its stake in Peabody Energy Co. by 12% in the second quarter of 2019. This move reflects the fund’s confidence in Peabody Energy and its potential for growth in the energy sector. As one of the largest coal producers in the world, Peabody Energy has a strong track record of delivering consistent returns to its shareholders. The company’s financial report for the second quarter of 2019 showed an increase in revenue and adjusted EBITDA, driven by higher realized prices and record shipments. This positive performance has likely contributed to the Texas Permanent School Fund Corp’s decision to increase its investment in the company.

The Texas Permanent School Fund Corp is responsible for managing the Permanent School Fund, which provides funding for public education in Texas. As a significant investor in Peabody Energy, this move also highlights the fund’s belief in the company’s potential to generate stable returns for its shareholders. This increase in ownership by the Texas Permanent School Fund Corp also sends a strong message to other investors about the value and potential of Peabody Energy. It may attract more attention from other institutions and investors, potentially leading to further growth and investment opportunities for the company. With a commitment to responsible and sustainable mining practices, Peabody Energy continues to be a leader in the global energy industry and a promising investment for shareholders.

Analysis

As a wellness company specializing in analyzing the health of various businesses, our assessments have led us to classify PEABODY ENERGY as a ‘rhino’ company. This means that, based on our Star Chart methodology, we have determined that PEABODY ENERGY has achieved moderate revenue or earnings growth. When examining the overall wellness of PEABODY ENERGY, we have found that the company is strong in certain areas while weaker in others. In terms of asset management, dividend payouts, and overall profitability, PEABODY ENERGY ranks in the medium range. However, when it comes to growth potential, we have found that the company is lacking. This information may be valuable to investors looking to add PEABODY ENERGY to their portfolio. For those seeking steady and reliable returns, the company’s strength in asset management and dividend payouts may make it an attractive option. On the other hand, investors looking for significant growth potential may want to consider other options. In terms of financial health, we have given PEABODY ENERGY a high score of 8/10. This is due to our analysis of the company’s cashflows and debt, which indicates that it is capable of safely navigating any potential crises without the risk of bankruptcy. Overall, while PEABODY ENERGY may not be a top performer in terms of growth potential, it has shown resilience and strength in other areas that make it a viable option for investors seeking stability and long-term returns. As always, we recommend further research and careful consideration before making any investment decisions. More…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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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

Texas Permanent School Fund Corp increased its ownership in Peabody Energy Co. by 12.0% during the second quarter through investment analysis. This move suggests that the company is confident in the long-term growth potential of Peabody Energy and sees it as a valuable investment opportunity. Investing analysis involves evaluating a company’s financial performance, industry trends, and market conditions to determine the potential for growth and profitability. By increasing its stake in Peabody Energy, Texas Permanent School Fund Corp is demonstrating a positive outlook for the company’s future and believes it is worth investing in for potential returns.