Peabody Energy Corporation (BTU) AI Stock Analysis

Peabody Energy Corporation, based in St. Louis, Missouri, operates in the global coal mining industry across the United States, Australia, Asia, and other international markets. Its operations are organized into Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining. The company extracts, prepares, and markets thermal coal for electric utilities, as well as bituminous, sub-bituminous, and metallurgical coal products for steel manufacturers and industrial facilities. As of December 31, 2021, Peabody held interests in 17 coal mining operations with approximately 2.5 billion tons of proven and probable coal reserves, alongside coal and freight trading and transportation services.

Over the five-year period from FY2020 to FY2025, Peabody achieved a revenue compound annual growth rate of 6.0%. Annual revenue peaked in FY2022 at $4.98B with gross margin at 33.9% and net income of $1.30B, but contracted to $4.24B in FY2024 and $3.86B in FY2025. In FY2025, gross margin fell to 2.7%, operating margin reached 0.0%, and net income declined to -$52.9M. Over the trailing twelve months, revenue was $4.01B with an operating margin of -9.5% and a net margin of -4.6%. In the latest quarter ended June 30, 2026, quarterly revenue rose 12.7% year-over-year, while quarterly earnings contracted 62.6%.

As of June 30, 2026, Peabody reported $526.3M in cash and short-term investments against total debt of $424.9M, resulting in net cash of $101.4M. Shareholders' equity stood at $3.25B with total assets of $5.45B, yielding a debt-to-equity ratio of 0.13 and a current ratio of 2.01. In FY2025, the company generated $949.7M in operating cash flow and $528.3M in free cash flow. Capital expenditures totaled $421.4M, while capital return included $36.5M in dividends paid and $800,000 in share buybacks.

At $23.89, Peabody carries a market capitalization of $2.91B and an enterprise value of $3.12B. The stock trades at a forward P/E of 19.1x, higher than the 12.7x median of its US-listed Energy peers. Its EV/EBITDA of 12.9x is also above the peer median of 8.0x, though its price-to-sales ratio of 0.7x is lower than the peer median of 1.8x. Over the past year, BTU returned -27.1%, lagging the 16.8% return of the S&P 500 (SPY). Over five years, the stock gained 57.0% compared to 83.0% for the S&P 500.

Peabody pays a quarterly dividend with an annual forward payout of $0.30 per share, yielding 1.26%. The company has paid dividends for 4 consecutive years, reflecting a payout ratio of 28.6%. The last ex-dividend date was August 12, 2026.

Wall Street coverage includes 4 Strong Buy ratings and 2 Hold ratings. The mean price target is $30.75, representing a 28.7% premium over the last close of $23.89. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.25B and an EPS of -$0.33. For the following fiscal year, 3 analysts project revenue of $4.66B and EPS of $2.85. The company beat EPS estimates in 1 of the last 4 quarters, and the next earnings date is October 29, 2026.

This page is an AI-written research summary of Peabody Energy Corporation (BTU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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