Peabody Energy Return On Equity vs. Cash And Equivalents
| BTU Stock | USD 25.99 1.42 5.18% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.21415281 | Current Value 0.22 | Quarterly Volatility 0.95605401 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.18 | 0.3157 |
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For Peabody Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Peabody Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Peabody Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Peabody Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Peabody Energy Corp over time as well as its relative position and ranking within its peers.
Peabody |
Peabody Energy's Revenue Breakdown by Earning Segment
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Is Oil, Gas & Consumable Fuels space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Peabody Energy. If investors know Peabody will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Peabody Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Dividend Share 0.3 | Earnings Share 3.79 | Revenue Per Share 34.154 | Quarterly Revenue Growth 0.008 |
The market value of Peabody Energy Corp is measured differently than its book value, which is the value of Peabody that is recorded on the company's balance sheet. Investors also form their own opinion of Peabody Energy's value that differs from its market value or its book value, called intrinsic value, which is Peabody Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Peabody Energy's market value can be influenced by many factors that don't directly affect Peabody Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Peabody Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Peabody Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Peabody Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Peabody Energy Corp Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Peabody Energy's current stock value. Our valuation model uses many indicators to compare Peabody Energy value to that of its competitors to determine the firm's financial worth. Peabody Energy Corp is rated below average in return on equity category among its peers. It is number one stock in cash and equivalents category among its peers creating about 8,289,790,742 of Cash And Equivalents per Return On Equity. At this time, Peabody Energy's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Peabody Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Peabody Cash And Equivalents vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Peabody Energy |
| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Peabody Energy |
| = | 1.31 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Peabody Cash And Equivalents Comparison
Peabody Energy is currently under evaluation in cash and equivalents category among its peers.
Peabody Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Peabody Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Peabody Energy will eventually generate negative long term returns. The profitability progress is the general direction of Peabody Energy's change in net profit over the period of time. It can combine multiple indicators of Peabody Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 189.6 M | 199.1 M | |
| Operating Income | 1.1 B | 1.1 B | |
| Income Before Tax | 1.1 B | 1.2 B | |
| Total Other Income Expense Net | 50.1 M | 52.6 M | |
| Net Income | 760 M | 798 M | |
| Income Tax Expense | 308.8 M | 324.2 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.2 B | |
| Net Income From Continuing Ops | 1.3 B | 1.3 B | |
| Non Operating Income Net Other | -35.5 M | -33.8 M | |
| Interest Income | 68.6 M | 77.8 M | |
| Net Interest Income | -6.4 M | -6.7 M | |
| Change To Netincome | -143.3 M | -136.1 M | |
| Net Income Per Share | 5.00 | 5.25 | |
| Income Quality | 2.31 | 2.15 | |
| Net Income Per E B T | 0.68 | 0.44 |
Peabody Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Peabody Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Peabody Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Peabody Energy's important profitability drivers and their relationship over time.
Use Peabody Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Peabody Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Peabody Energy will appreciate offsetting losses from the drop in the long position's value.Peabody Energy Pair Trading
Peabody Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to Peabody Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Peabody Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Peabody Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Peabody Energy Corp to buy it.
The correlation of Peabody Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Peabody Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Peabody Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Peabody Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Peabody Energy position
In addition to having Peabody Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Peabody Stock Analysis
When running Peabody Energy's price analysis, check to measure Peabody Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Peabody Energy is operating at the current time. Most of Peabody Energy's value examination focuses on studying past and present price action to predict the probability of Peabody Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Peabody Energy's price. Additionally, you may evaluate how the addition of Peabody Energy to your portfolios can decrease your overall portfolio volatility.