As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
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. 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 is up 4.62%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $2.73 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 %:
FCF/MC Yield: 15%
Shareholder Yield %:
Shareholder Yield: 17.20
Other Indicators
Piotroski F Score: 5.00
Dividend Yield %: 1.5
ROA (5 Year Avge%): 12
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