Why Peabody Energy Corp Stock Is A Buy?


Image Source: PixabayAs part of our ongoing series, each week we will focus on one of the stocks from our stock screeners, and take a look at why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our stock screeners is: Peabody Energy Corp.

Peabody Energy Corp (BTU)
Peabody Energy Corp is a producer of metallurgical and thermal coal. It also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts. The company operates in the following segment: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate, and Other.The Powder River Basin segment generates the majority of the revenue for the company. A substantial part of its overall revenue is generated from its customers in the United States, and rest from Japan, China, Australia, Taiwan, and other regions.A quick look at the share price history (below) over the past twelve months shows that the price has moved up 4.62%. Here’s why the company is undervalued.Image Source: Google Finance

Key Stats

  • Market cap: $2.93 billion
  • Enterprise value: $2.33 billion
  • Operating Earnings

  • Operating earnings: $660 million
  • Acquirer’s Multiple

  • Acquirer’s multiple: 3.50
  • Free Cash Flow (TTM)

  • Free cash flow: $409 million
  • FCF/MC Yield Percentage:

  • FCF/MC yield: 15%
  • Shareholder Yield Percentage:

  • Shareholder yield: 17.20
  • Other Indicators

  • Piotroski F score: 5.00
  • Dividend yield percentage: 1.5
  • ROA (five-year average percentage): 12
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