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1. Company Snapshot

1.a. Company Description

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally.The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments.It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal.


The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers.As of December 31, 2021, it owned interests in 17 coal mining operations located in the United States and Australia; and had approximately 2.5 billion tons of proven and probable coal reserves and approximately 450,000 acres of surface property through ownership and lease agreements.The company also engages in direct and brokered trading of coal and freight-related contracts, as well as provides transportation-related services.


Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri.

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1.b. Last Insights on BTU

Breaking News: Peabody Energy Corporation recently saw a significant development as Progeny 3 Inc reduced its stake by 819433 shares in the fourth quarter with an estimated transaction value of 2408 million The quarter end position value decreased by 2145 million As of now no recent earnings release is available for analysis A fund has sold off a substantial portion of its holdings in the company This change in stake may impact the market perception of the stock Some analysts recommend a buy while others advise to hold

1.c. Company Highlights

2. Peabody Energy's Strong Q4 Results Driven by Metallurgical Coal Strength

Peabody Energy Corporation reported net income attributable to common stockholders of $10.4 million or $0.08 per diluted share in the fourth quarter, slightly missing analyst estimates of $0.1. Adjusted EBITDA came in at $118 million, a 19% increase from the prior quarter, driven by improved pricing and volumes across its segments. The company's cash and total liquidity stood at $575 million and above $900 million, respectively. Revenue growth is expected to continue, with analysts estimating a 3.8% increase in revenues for the next year.

Publication Date: Feb -11

📋 Highlights
  • Record Safety Performance:: Achieved an incident rate of 0.71 per 200,000 hours, a 12% improvement over the prior record.
  • Centurion Mine Launch:: Premium hard coking coal production of 4.7 million tons/year with $2.1 billion NPV at $225 benchmark pricing and 25+ year mine life.
  • Strong Financials:: Q4 net income of $10.4M ($0.09/share), $118M adjusted EBITDA (19% QoQ growth), and $336M annual operating cash flow.
  • Metallurgical Coal Growth:: Seaborne Met shipments rose 400K tons QoQ to 2.5M tons, with realized pricing at $113/ton and $56M annual EBITDA.
  • 2026 Outlook:: Seaborne Met volumes to hit 10.8M tons (up 2M) with 10% higher price realizations, and total CapEx reduced to $340M ($70M below 2025).

Segment Performance

The Seaborne Thermal segment delivered 3.3 million tons, exceeding expectations, with realized export pricing averaging $81.80 per ton, up 7% from the third quarter. The Seaborne Met segment shipped 2.5 million tons, up 400,000 from the third quarter, with realized pricing improving to $113 per ton. The US thermal platform contributed $63 million of adjusted EBITDA in the fourth quarter, with the PRB operations shipping 22.3 million tons in the quarter.

Operational Highlights and Outlook

The Centurion mine in Australia is expected to start longwall mining, with an NPV of $2.1 billion at $225 benchmark pricing. The seaborne metallurgical coal market has seen substantial strength, with benchmark pricing rising to an 18-month high. Looking ahead to 2026, Seaborne thermal volumes are expected to be lower due to mine closures, while Seaborne met volumes are projected to increase with the start of longwall production at Centurion. As Mark A. Spurbeck noted, the company's met segment will be further improved with the startup of Centurion, increasing volume to 10.8 million tons in 2026.

Valuation and Metrics

With a 'P/E Ratio' of -133.72 and 'P/S Ratio' of 1.1, the market appears to be pricing in a challenging environment for Peabody Energy Corporation. However, the 'EV/EBITDA' ratio of 8.56 suggests that the company's enterprise value is relatively reasonable compared to its EBITDA. The 'Net Debt / EBITDA' ratio of -1.08 indicates a healthy balance sheet, with the company having more cash than debt. As the company enters 2026 from a position of strength, with an enhanced MET platform and continued strong cash flowing thermal operations, these metrics will be important to monitor.

3. NewsRoom

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First Look: Iran Shock Roils Markets; Target Beats, Amazon Buys

Mar -03

Source: gurufocus.com

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Peabody Energy Corporation $BTU Shares Purchased by American Century Companies Inc.

Mar -03

Source: defenseworld.net

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Peabody Energy Stock Up 120% This Past Year, and One Fund Just Sold Off $24 Million in Shares

Mar -02

Source: fool.com

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Peabody Energy Stock Up 105% in a Year as $14.15 Million Stake Gets Trimmed

Feb -17

Source: fool.com

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BTU Option Grant

Feb -16

Source: accessnewswire.com

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Stock Market Live February 12, 2026: S&P 500 (SPY) Could See Higher Highs

Feb -12

Source: 247wallst.com

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Kinross to Initiate Two Phase 6,000-8,000 Metre Drill Program on BTU Dixie Halo Property Near Great Bear Property

Feb -12

Source: accessnewswire.com

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54 Stocks, 9 Megatrends: My Favorite Places To Be While Capital Is 'Forced'

Feb -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.09%)

6. Segments

Seaborne Thermal

Expected Growth: 4.65%

Seaborne Thermal from Peabody Energy Corporation's 4.65% growth is driven by increasing demand from Asian markets, particularly China and India, for high-quality thermal coal. Additionally, supply constraints in key exporting countries, such as Indonesia and Australia, have tightened the market, supporting prices and driving growth.

Seaborne Metallurgical

Expected Growth: 4.85%

Seaborne Metallurgical from Peabody Energy Corporation's 4.85% growth is driven by increasing global steel demand, particularly from infrastructure development in Asia, and supply constraints in the metallurgical coal market. Additionally, Peabody's cost-cutting initiatives and operational efficiencies have improved profitability, contributing to the segment's growth.

Powder River Basin

Expected Growth: 3.63%

The 3.63% growth in Powder River Basin from Peabody Energy Corporation is driven by increasing demand for thermal coal, favorable weather conditions, and operational efficiencies. Additionally, the region's low-cost production and proximity to Asian markets support exports, contributing to the segment's growth.

Other United States Thermal Mining

Expected Growth: 2.83%

The 2.83% growth in Other United States Thermal Mining from Peabody Energy Corporation is driven by increasing demand for thermal coal from utilities, favorable weather patterns, and operational efficiencies. Additionally, Peabody's cost management initiatives and strategic capital allocation have contributed to the segment's growth.

Corporate and Other

Expected Growth: 3.85%

Peabody Energy's Corporate and Other segment growth of 3.85% is driven by increased metallurgical coal demand, strategic cost reductions, and improved operating efficiencies. Additionally, the company's diversified revenue streams, including its trading and brokerage business, contribute to the segment's growth.

7. Detailed Products

Thermal Coal

Peabody Energy Corporation is one of the largest producers of thermal coal, which is used to generate electricity.

Metallurgical Coal

Peabody Energy Corporation produces high-quality metallurgical coal, used in the production of steel.

Mining Services

Peabody Energy Corporation offers mining services, including mine planning, operations, and maintenance.

Coal Trading

Peabody Energy Corporation engages in coal trading, sourcing, and logistics.

Land Management

Peabody Energy Corporation manages large land holdings, offering opportunities for oil and gas exploration, and recreational activities.

8. Peabody Energy Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Peabody Energy Corporation faces moderate threat from substitutes, as renewable energy sources like solar and wind power are becoming increasingly competitive with coal.

Bargaining Power Of Customers

Peabody Energy Corporation's customers, primarily utilities and industrial companies, have limited bargaining power due to the company's dominant market position and lack of alternative suppliers.

Bargaining Power Of Suppliers

Peabody Energy Corporation's suppliers, primarily mining equipment and transportation providers, have moderate bargaining power due to the company's significant purchasing power and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants in the coal mining industry is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns.

Intensity Of Rivalry

The coal mining industry is highly competitive, with several major players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.81%
Debt Cost 9.04%
Equity Weight 91.19%
Equity Cost 9.04%
WACC 9.04%
Leverage 9.66%

11. Quality Control: Peabody Energy Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.88$

Current Price

34.88$

Potential

-0.00%

Expected Cash-Flows