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 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

Glenn Kellow became CEO in May. He previously served as president and COO of the company and is keeping the president role. Before joining Peabody in 2013, Kellow worked in a variety of executive positions across numerous countries and commodities for   Read more 

Profile

Peabody Energy mines and sells coal though 25 majority-owned active coal mines in the U.S. and Australia and a 50% ownership in the Middlemount Mine in Australia. Peabody   Read more 

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