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Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Peabody Energy as such a stock due to the following factors:
- BTU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.4 million.
- BTU has traded 78,472 shares today.
- BTU is down 7.9% today.
- BTU was up 5.9% yesterday.
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More details on BTU:
Peabody Energy Corporation is engaged in the mining of coal. The company operates through Western U.S. Mining, Midwestern U.S. Mining, Australian Mining, Trading and Brokerage, and Corporate and Other segments. The stock currently has a dividend yield of 5%. Currently there are 9 analysts that rate Peabody Energy a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Peabody Energy has been 12.9 million shares per day over the past 30 days. Peabody Energy has a market cap of $1.8 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.54 and a short float of 21.2% with 4.37 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Friday.
rates Peabody Energy as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 477.0% when compared to the same quarter one year ago, falling from -$26.10 million to -$150.60 million.
- Currently the debt-to-equity ratio of 1.67 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, BTU has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for PEABODY ENERGY CORP is rather low; currently it is at 15.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.74% is significantly below that of the industry average.
- Net operating cash flow has decreased to $174.80 million or 17.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 61.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1066.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Peabody Energy Ratings Report.