📊 BTU Key Takeaways
Is Peabody Energy Corp. (BTU) a Good Investment?
Peabody Energy exhibits severe operational distress with negative net income (-$32.4M) and catastrophic free cash flow (-$381.4M) despite massive revenue growth, indicating unsustainable capex spending relative to profitability. The company is burning substantial cash while operating at loss margins across all profitability metrics, coupled with secular headwinds in the declining coal sector.
Peabody Energy's fundamentals are mixed: the balance sheet is strong with low leverage, solid liquidity, and meaningful cash on hand, but current profitability is weak with operating and net losses. Revenue growth appears unusually large relative to the loss profile, which raises questions about growth quality and earnings durability, while negative free cash flow suggests capital intensity is currently pressuring shareholder returns.
Peabody Energy Corp. Key Strengths (BTU)
- Strong balance sheet with low leverage (Debt/Equity of 0.09x)
- Healthy liquidity position (Current Ratio 1.87x, Quick Ratio 1.37x)
- Adequate cash reserves ($492.5M) providing runway
- Strong balance sheet with low debt-to-equity of 0.09x and substantial equity base
- Healthy liquidity profile with 1.85x current ratio, 1.40x quick ratio, and $575.3M in cash
- Positive operating cash flow of $333.7M despite reported net loss
BTU Stock Risks: Peabody Energy Corp. Investment Risks
- Negative free cash flow of -$381.4M indicating severe cash burn relative to operations
- Unprofitable operations with negative operating income (-$44.2M) and contracting net income (-24.5% YoY decline)
- Unsustainable capital expenditure ($411.4M) far exceeding operating cash flow ($30.0M)
- Secular decline in coal demand and energy transition headwinds
- All profitability metrics negative (Operating Margin -4.5%, Net Margin -3.3%, ROE -0.9%, ROA -0.6%)
- Negative operating margin, net margin, ROE, and ROA indicate weak current profitability
- Free cash flow is negative due to heavy capital expenditure, reducing financial flexibility
- Revenue surge of +8696.1% YoY appears low quality or non-recurring unless matched by sustained profit improvement
Key Metrics to Watch
- Free cash flow trend and capex justification
- Operating margin improvement and path to profitability
- Coal price realizations and volume trends
- Cash burn rate and liquidity runway
- Operating cash flow sustainability
- Operating margin and net income trend
- Free cash flow relative to capital expenditures
Peabody Energy Corp. (BTU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Peabody Energy Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BTU Profit Margin, ROE & Profitability Analysis
BTU vs Materials Sector: How Peabody Energy Corp. Compares
How Peabody Energy Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Peabody Energy Corp. Stock Overvalued? BTU Valuation Analysis 2026
Based on fundamental analysis, Peabody Energy Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Peabody Energy Corp. Balance Sheet: BTU Debt, Cash & Liquidity
BTU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Peabody Energy Corp.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $5.00 reflects profitable operations.
BTU Revenue Growth, EPS Growth & YoY Performance
BTU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $937.0M | -$32.4M | $0.27 |
| Q3 2025 | $1.0B | -$63.3M | $-0.52 |
| Q2 2025 | $890.1M | $6.8M | $0.06 |
| Q1 2025 | $937.0M | $34.4M | $0.27 |
| Q3 2024 | $1.1B | $101.3M | $0.74 |
| Q2 2024 | $1.0B | $179.2M | $1.15 |
| Q1 2024 | $983.6M | $39.6M | $0.29 |
| Q3 2023 | $1.1B | $119.9M | $0.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Peabody Energy Corp. Dividends, Buybacks & Capital Allocation
BTU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Peabody Energy Corp. (CIK: 0001064728)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BTU
What is the AI rating for BTU?
Peabody Energy Corp. (BTU) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BTU's key strengths?
Claude: Strong balance sheet with low leverage (Debt/Equity of 0.09x). Healthy liquidity position (Current Ratio 1.87x, Quick Ratio 1.37x). ChatGPT: Strong balance sheet with low debt-to-equity of 0.09x and substantial equity base. Healthy liquidity profile with 1.85x current ratio, 1.40x quick ratio, and $575.3M in cash.
What are the risks of investing in BTU?
Claude: Negative free cash flow of -$381.4M indicating severe cash burn relative to operations. Unprofitable operations with negative operating income (-$44.2M) and contracting net income (-24.5% YoY decline). ChatGPT: Negative operating margin, net margin, ROE, and ROA indicate weak current profitability. Free cash flow is negative due to heavy capital expenditure, reducing financial flexibility.
What is BTU's revenue and growth?
Peabody Energy Corp. reported revenue of $973.3M.
Does BTU pay dividends?
Peabody Energy Corp. pays dividends, with $9.2M distributed to shareholders in the trailing twelve months.
Where can I find BTU SEC filings?
Official SEC filings for Peabody Energy Corp. (CIK: 0001064728) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BTU's EPS?
Peabody Energy Corp. has a diluted EPS of $-0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BTU's fundamental grade?
Based on our AI fundamental analysis in June 2026, Peabody Energy Corp. has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BTU stock overvalued or undervalued?
Valuation metrics for BTU: ROE of -0.9% (sector avg: 14%), net margin of -3.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is BTU's AI grade for 2026?
Our dual AI analysis gives Peabody Energy Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BTU's free cash flow?
Peabody Energy Corp.'s operating cash flow is $30.0M, with capital expenditures of $411.4M. FCF margin is -39.2%.
How does BTU compare to other Materials stocks?
Vs Materials sector averages: Net margin -3.3% (avg: 10%), ROE -0.9% (avg: 14%), current ratio 1.87 (avg: 1.6).