Peabody Energy Corporation ($BTU) Cautious Buy or Hold to $20 Confident Investor Rating: Fair

Company name Peabody Energy Corporation
Stock ticker BTU
Live stock price [stckqut]BTU[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Poor
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $6.11
Target stock price (averages with growth) $9.18
Target stock price (averages with no growth) $14.84
Target stock price (manual assumptions) $21.55

The following company description is from Google Finance: http://www.google.com/finance?q=btu

Peabody Energy Corporation is a coal company. The Company owns majority interests in 28 coal mining operations located in the United States and Australia. In addition to mining operations, it markets, brokers and trades coal. It operates in four segments: its three mining segments and Trading and Brokerage segment. The three mining segments are Western U.S. Mining, Midwestern U.S. Mining and Australian Mining. Its fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, energy-related commercial activities, as well as the management of its coal reserve and real estate holdings. The principal business of its U.S. Mining segments is the mining, preparation and sale of thermal (steam) coal, sold primarily to electric utilities. Through the Trading and Brokerage segment, the Company brokers coal sales of other coal producers both as principal and agent, and trade coal, freight and freight-related contracts.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct (which it currently is not). Most of the fundamentals of this company are good but there are some concerns.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.