Peabody Energy Corporation [NYSE:BTU]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Peabody Energy Corporation [BTU] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give BTU an Outperform rating. Its stock price has been found in the range of 10.71 to 15.06. This is compared to its latest closing price of $29.64.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Peabody Energy Corporation [BTU] is sitting at 2.14. This is compared to 1 month ago, when its average rating was 2.29.
For the quarter ending in Dec-18 Peabody Energy Corporation [BTU] generated $1.4 billion in sales. That’s 1.83% higher than the average estimate of $1.37 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 24 Apr (In 70 Days).
Fundamental Analysis of Peabody Energy Corporation [BTU]
Now let’s turn to look at profitability: with a current Operating Margin for Peabody Energy Corporation [BTU] sitting at +9.90 and its Gross Margin at +13.92, this company’s Net Margin is now 12.70%. These measurements indicate that Peabody Energy Corporation [BTU] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 11.13, and its Return on Invested Capital has reached 25.30%. Its Return on Equity is 17.96, and its Return on Assets is 8.06. These metrics all suggest that Peabody Energy Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Peabody Energy Corporation [BTU] has generated a Total Debt to Total Equity ratio of 40.26. Similarly, its Total Debt to Total Capital is 28.70, while its Total Debt to Total Assets stands at 18.41. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 39.18, and its Long-Term Debt to Total Capital is 27.94. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 2.95 and its Total Debt to EBITDA Value is 1.06. The Enterprise Value to Sales for this firm is now 0.68, and its Total Debt to Enterprise Value stands at 0.33. Peabody Energy Corporation [BTU] has a Price to Book Ratio of 0.97, a Price to Cash Flow Ratio of 1.87 and P/E Ratio of 6.72. These metrics all suggest that Peabody Energy Corporation is more likely to generate a positive ROI.
Similarly, this company’s Receivables Turnover is 11.14 and its Total Asset Turnover is 0.72. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.58 and its Current Ratio is 1.85. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Peabody Energy Corporation [BTU] has 118.97M shares outstanding, amounting to a total market cap of $3.61B. Its stock price has been found in the range of 29.08 to 47.84. At its current price, it has moved by -36.58% from its 52-week high, and it has moved 4.33% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 37.10. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Peabody Energy Corporation [BTU] a Reliable Buy?
Shares of Peabody Energy Corporation [BTU], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.