Insufficient Growth At Peabody Energy Corporation (NYSE:BTU) Hampers Share Price
Insufficient Growth At Peabody Energy Corporation (NYSE:BTU) Hampers Share Price
With a price-to-earnings (or "P/E") ratio of 4x Peabody Energy Corporation (NYSE:BTU) may be sending very bullish signals at the moment, given that almost half of all companies in the United States have P/E ratios greater than 17x and even P/E's higher than 32x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
Recent times haven't been advantageous for Peabody Energy as its earnings have been falling quicker than most other companies. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. If you still like the company, you'd want its earnings trajectory to turn around before making any decisions. Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Peabody Energy.What Are Growth Metrics Telling Us About The Low P/E?
In order to justify its P/E ratio, Peabody Energy would need to produce anemic growth that's substantially trailing the market.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 39%. This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Looking ahead now, EPS is anticipated to slump, contracting by 16% per year during the coming three years according to the five analysts following the company. With the market predicted to deliver 10% growth per annum, that's a disappointing outcome.
In light of this, it's understandable that Peabody Energy's P/E would sit below the majority of other companies. However, shrinking earnings are unlikely to lead to a stable P/E over the longer term. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What We Can Learn From Peabody Energy's P/E?
While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
As we suspected, our examination of Peabody Energy's analyst forecasts revealed that its outlook for shrinking earnings is contributing to its low P/E. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
There are also other vital risk factors to consider and we've discovered 3 warning signs for Peabody Energy (1 can't be ignored!) that you should be aware of before investing here.
You might be able to find a better investment than Peabody Energy. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Peabody Energy Corporation(紐約證券交易所代碼:BTU)的市盈率(或"P/E")爲4倍,目前可能發出了非常看漲的信號,因爲美國幾乎有一半公司的市盈率超過17倍,甚至市淨率超過32倍也並不罕見。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲什麼市盈率如此有限。
最近對Peabody Energy來說並不是有利的,因爲其收益的下降速度比大多數其他公司快。市盈率可能很低,因爲投資者認爲這種糟糕的收益表現根本不會改善。如果你仍然喜歡這家公司,那麼在做出任何決定之前,你會希望其盈利軌跡得到扭轉。或者至少,如果你的計劃是在失寵的時候買入一些股票,你希望收益下滑不會變得更糟。
紐約證券交易所:BTU 與行業的市盈率 2024 年 4 月 17 日
如果你想了解分析師對未來的預測,你應該查看我們關於Peabody Energy的免費報告。
關於低市盈率,增長指標告訴我們什麼?
爲了證明其市盈率是合理的,Peabody Energy需要實現大幅落後於市場的疲軟增長。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤下降了39%。這抹去了其在過去三年中的任何收益,總體每股收益幾乎沒有變化。因此,在我們看來,該公司的收益增長好壞參半。
展望未來,預計每股收益將下滑,根據關注該公司的五位分析師的說法,未來三年內每年收縮16%。預計市場每年將實現10%的增長,這是一個令人失望的結果。
有鑑於此,皮博迪能源的市盈率將低於其他大多數公司是可以理解的。但是,從長遠來看,收益萎縮不太可能帶來穩定的市盈率。由於疲軟的前景壓低了股價,即使僅僅維持這些價格也可能難以實現。
我們可以從Peabody Energy的市盈率中學到什麼?
雖然市盈率不應該是決定你是否買入股票的決定性因素,但它是衡量收益預期的有力晴雨表。
正如我們所懷疑的那樣,我們對皮博迪能源分析師預測的審查顯示,其收益萎縮的前景是其低市盈率的原因。目前,股東們正在接受低市盈率,因爲他們承認未來的收益可能不會帶來任何驚喜。除非這些條件有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
還有其他重要的風險因素需要考慮,我們已經發現了 Peabody Energy 的 3 個警告信號(1 個不容忽視!)在這裏投資之前,您應該注意這一點。
你也許能找到比皮博迪能源更好的投資。如果你想選擇可能的候選人,可以免費查看這份有趣的公司名單,這些公司的市盈率很低(但已經證明可以增加收益)。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能,分享給你的好友吧