Added to YB: 2025-08-13
Pitch date: 2025-08-12
BTU [bullish]
Peabody Energy Corporation
+30.35%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
Peabody Energy Corporation engages in the production of metallurgical and thermal coal. It operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, and Other U.
Market Cap
$2.9B
Pitch Price
$17.92
Price Target
N/A
Dividend
1.26%
EV/EBITDA
7.50
P/E
-23.75
EV/Sales
0.74
Sector
Oil, Gas and Consumable Fuels
Category
value
Peabody Energy: The Coal Bargain
BTU: At $17 (~0.58x P/B, 3.5x LTM EV/EBITDA), priced for trouble despite $1.6/sh net cash & steady PRB cash flow. Centurion adds 3.5-4.7Mt premium HCC from Feb-26 at ~$105/t cost. Anglo met deal ($3.78B) under MAC dispute—renegotiate or walk preferred. PRB costs down to $11.66/t, new 7% royalty adds $15-20M H2. Free PRB rare earth option. Fair value $24-27 (0.8x P/B, 4-4.5x EBITDA) if Anglo resolved & Centurion delivers; upside to $28-31 on stronger seaborne prices.
Read full article (4 min)