Morningstar Rating

Stock Research and Analysis

by Kristoffer Inton

Bulls Say

Peabody's high-margin Australian operations have the potential to be a catalyst for significant growth, increasing the company's exposure to the fastest-growing coal markets of China and India.
Peabody's Powder River Basin mines should continue to generate significant return, as the demand for its cleaner coal should remain strong as climate concerns grow.
Peabody's low-cost Powder River Basin and Illinois Basin coal should be able to steal market share away from its high-cost Appalachian competitors. Read more 

Bears Say

Coal could undergo a secular decline with the proliferation of renewable energy technologies and increased usage of other fuels.
An increased focus on carbon emissions by regulators would hurt all coal demand, including PRB coal.
The company acquired Macarthur at the peak of metallurgical prices, leaving it highly leveraged. Read more 

Management

Greg Boyce has been president and CEO since 2006 and chairman since 2007. His prior experience includes leadership roles at Rio Tinto and its subsidiaries Kennecott Energy and Kennecott Minerals, as well as education as a mining engineer. Boyce is also   Read more 

Profile

Peabody Energy mines and sells coal though 27 majority-owned active coal mines in the U.S. and Australia, a 50% ownership in the Middlemount Mine in Australia, and a noncontrolling   Read more 

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