Yahoo Finance Peabody Energy Corporation (NYSE:BTU): Commentary On Fundamentals
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Peabody Energy Corporation (NYSE:BTU) due to its excellent fundamentals in more than one area. BTU is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Peabody Energy here.
Undervalued with adequate balance sheet
BTU's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that BTU manages its cash and cost levels well, which is a key determinant of the company’s health. BTU seems to have put its debt to good use, generating operating cash levels of 0.71x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. BTU's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if BTU's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the energy industry, BTU is also trading below its peers, relative to earnings generated. This bolsters the proposition that BTU's price is currently discounted.
Next Steps:
For Peabody Energy, I've put together three fundamental factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for BTU’s future growth? Take a look at our free research report of analyst consensus for BTU’s outlook.
Historical Performance: What has BTU's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BTU? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
