Peabody Energy Corporation Common Stock (BTU)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages and consistent earning power. Peabody Energy mines thermal and metallurgical coal across Australia and the United States. Coal is a commodity, so the company is largely a price-taker; that limits any real moat. The reported trend is deteriorating: in fiscal year 2023, the year ended 2023-12-31, revenue was $4.9B and net income was $815.6M; in fiscal year 2024, the year ended 2024-12-31, revenue was $4.2B and net income was $403.5M; in fiscal year 2025, the year ended 2025-12-31, revenue was $3.9B and net income was a loss of $42.5M. More recently, in fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $32.4M, and in fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $90.6M on revenue of $1.0B. FairStock's trailing free cash flow is -$178.0M, a -5.8% FCF yield, with ROE of -4.77% and ROCE of -1.54%. The balance sheet is not heavily levered, with D/E of 0.13, but a low debt ratio does not fix negative cash flow. At the 2026-10-13 close of $25.21, FairStock's P/B is 0.95 and P/E is -16.92. The P/B below one hints at asset value, but earnings and cash flow do not support it yet. FairStock's Altman Z-Score of 1.47 and Piotroski F-Score of 4/9 point to financial weakness. FairStock classifies it as a TURNAROUND—a loss in the latest year after earlier profits. I would want clear evidence of restored cash generation before calling this a bargain.

In plain English: Peabody Energy mines and sells coal used for electricity and steelmaking. The business has gone from large profits in 2023 and 2024 to losses in 2025 and 2026, and it is currently spending more cash than it brings in. At $25.21, the price looks roughly in line with the value of its net assets on paper, but the weak earnings make it hard to call clearly cheap or expensive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer