Peabody Energy Corporation EBITDA dropped on 284% and Revenue dropped on 37.7%
02/04/2021 • About Peabody Energy Corporation (
$BTU) • By InTwits
Peabody Energy Corporation reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Peabody Energy Corporation is a company in decline: 2020 revenue growth was -37.7%, 5 years revenue CAGR was -12.5%
- EBITDA Margin is declining: -45.0% in 2020 vs. 15.2% in 2019 vs. 3.7% in 2016
- EBITDA Margin is quite volatile: -45.0% in 2020, 15.2% in 2019, 24.0% in 2018, 27.2% in 2017, 3.7% in 2016
- Peabody Energy Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 6.6%
- CAPEX is quite volatile: $191m in 2020, $288m in 2019, $688m in 2018, $199m in 2017, $376m in 2016
- The company has unprofitable business model: ROIC is -49.7%
- It operates with high leverage: Net Debt/EBITDA is 8.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 37.7%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 34.0%. During 2016-2020 Revenue growth topped in 2017 at 18.3% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 2.3% to 3.6% in 2020. During the last 5 years EBITDA Margin topped in 2017 at 27.2% and was declining since that time.
Gross Margin dropped on 10.5 pp from 9.2% to -1.2% in 2020. During 2016-2020 Gross Margin topped in 2017 at 15.9% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2017 at 2.6% and was growing since that time.
Net Income margin dropped on 60.3 pp from -4.6% to -64.9% in 2020. During 2016-2020 Net Income margin topped in 2018 at 11.6% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2020 Peabody Energy Corporation had CAPEX/Revenue of 6.6%. CAPEX/Revenue increased on 3.1 pp from 3.6% in 2017 to 6.6% in 2020. For the last three years the average CAPEX/Revenue was 8.4%.
Return on investment
The company operates at negative ROIC (-49.7%) and ROE (-105.6%). ROIC dropped on 51.2 pp from 1.5% to -49.7% in 2020. ROE dropped on 98.5 pp from -7.0% to -106% in 2020. During 2016-2020 ROIC topped in 2018 at 13.5% and was declining since that time. During 2016-2020 ROE topped in 2017 at 17.6% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.4x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.9x from 0.9x to in 2020. Debt surged on 15.9% while cash decreased on 3.1%.
Peabody Energy Corporation has no short term refinancing risk: cash is higher than short term debt (1,021.9%).
Management team
The company's CEO Glenn L Kellow has spent 5 years with the company. Peabody Energy Corporation's CFO Mark A Spurbeck has spent 9 months years with the company.
Financial and operational results
FY ended 12/31/2020
Peabody Energy Corporation ($BTU) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 4,715 | 5,579 | 5,582 | 4,623 | 2,881 | -37.7% |
| Gross Profit | 101 | 886 | 778 | 427 | -35 | -108.3% |
| SG&A | 153 | 143 | 158 | 145 | 100 | -31.4% |
| EBITDA | 172 | 1,518 | 1,341 | 703 | -1,296 | -284.2% |
| Net Income | -729 | 462 | 647 | -211 | -1,870 | |
Balance Sheet
|
|---|
| Cash | 872 | 1,012 | 982 | 732 | 709 | -3.1% |
| Short Term Debt | 8,460 | 42 | 37 | 48 | 69 | 44.9% |
| Long Term Debt | 0 | 1,419 | 1,331 | 1,345 | 1,545 | 14.8% |
Cash flow
|
|---|
| Capex | 376 | 199 | 688 | 288 | 191 | -33.5% |
Ratios
|
|---|
| Revenue growth | -15.9% | 18.3% | 0.1% | -17.2% | -37.7% | |
| EBITDA growth | -119.7% | 780.9% | -11.7% | -47.5% | -284.2% | |
|
|---|
| Gross Margin | 2.1% | 15.9% | 13.9% | 9.2% | -1.2% | -10.5% |
| EBITDA Margin | 3.7% | 27.2% | 24.0% | 15.2% | -45.0% | -60.2% |
| SG&A, % of revenue | 3.3% | 2.6% | 2.8% | 3.1% | 3.5% | 0.3% |
| Net Income Margin | -15.5% | 8.3% | 11.6% | -4.6% | -64.9% | -60.3% |
| CAPEX, % of revenue | 8.0% | 3.6% | 12.3% | 6.2% | 6.6% | 0.4% |
|
|---|
| ROIC | -3.6% | 12.6% | 13.5% | 1.5% | -49.7% | -51.2% |
| ROE | -133.7% | 17.6% | 16.9% | -7.0% | -105.6% | -98.5% |
| Net Debt/EBITDA | 44.0x | 0.3x | 0.3x | 0.9x | |
Peabody Energy Corporation ($BTU) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 846 | 627 | 671 | 737 | | -32.3% | -45.5% | -39.4% | -34.0% |
| EBITDA | 30 | -1,408 | 73 | 9 | | -91.8% | -671.0% | -45.4% | - |
| Net Income | -130 | -1,544 | -67 | -129 | | -204.4% | -4,262.3% | - | - |
Balance Sheet
|
|---|
| Cash | 683 | 849 | 815 | 709 | | -14.5% | -0.5% | 7.3% | -3.1% |
| Short Term Debt | 38 | 36 | 1,655 | 69 | | -42.3% | -38.2% | 3,144.1% | 44.9% |
| Long Term Debt | 1,339 | 1,639 | 7 | 1,545 | | -3.3% | 18.3% | -99.5% | 14.8% |
Ratios
|
|---|
| Gross Margin | -6.7% | -5.1% | 5.0% | 2.7% | | -16.0% | -14.7% | 1.0% | -11.4% |
| EBITDA Margin | 3.6% | -224.7% | 10.9% | 1.2% | | -25.8% | -246.2% | -1.2% | 4.4% |
| Net Income Margin | -15.3% | -246.4% | -10.0% | -17.5% | | -25.3% | -249.6% | -2.5% | 8.4% |
Peers in Coal & Consumable Fuels
Below you can find Peabody Energy Corporation benchmarking vs. other companies in Coal & Consumable Fuels industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
