vvincii we show the working

← Energy

BTU

Peabody Energy

Energy · fiscal year ending 2025-12-31

Through the investors’ lenses

Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.

Warren Buffett 1/4
MeasureBTUChecked against
Owner earnings$-69.40mpositive
Return on equity-1.2%median 11.7%
Debt to equity0.09xmedian 0.79x
Operating margin-2.1%median 15.0%

Passes 1 of 4. To be clear: Warren Buffett has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Terry Smith 1/3
MeasureBTUChecked against
Return on capital employed-2.1%median 10.1%
Cash conversionmedian 1.78x
Operating margin-2.1%median 15.0%
Debt to equity0.09xmedian 0.79x

Passes 1 of 3. To be clear: Terry Smith has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Charlie Munger 0/3
MeasureBTUChecked against
Return on capital employed-2.1%median 10.1%
Return on equity-1.2%median 11.7%
Operating margin-2.1%median 15.0%

Passes 0 of 3. To be clear: Charlie Munger has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Chuck Akre 1/3
MeasureBTUChecked against
Return on equity-1.2%median 11.7%
Debt to equity0.09xmedian 0.79x
Cash conversionmedian 1.78x
Return on equity, sustained4 of 108 of 10 above median

Passes 1 of 3. To be clear: Chuck Akre has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Philip Fisher 0/4
MeasureBTUChecked against
Operating margin-2.1%median 15.0%
Net margin-1.1%median 10.2%
Return on capital employed-2.1%median 10.1%
Operating margin, held or improving-2.1%10-yr median 1.3%

Passes 0 of 4. To be clear: Philip Fisher has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Walter Schloss 2/2
MeasureBTUChecked against
Current ratio1.85xmedian 1.25x
Debt to equity0.09xmedian 0.79x

Passes 2 of 2. To be clear: Walter Schloss has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Benjamin Graham 1/3
MeasureBTUChecked against
Current ratio1.85x2.00x published
Long-term debt to working capital0.45x1.00x published
Positive earnings, ten years running0 yrs10 published

Passes 1 of 3. To be clear: Benjamin Graham has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Joel Greenblatt 0/1
MeasureBTUChecked against
Return on capital employed-2.1%median 10.1%

Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

Peter Lynch 1/2
MeasureBTUChecked against
Debt to equity0.09xmedian 0.79x
Net margin-1.1%median 10.2%

Passes 1 of 2. To be clear: Peter Lynch has never said anything about Peabody Energy. These are the company’s own figures put through the tests he described. What he looks at, and why →

BasisPayoutWhy
GAAP earningsnegative
why
Lost $0.430 per share — no earnings to pay from.
Operating cash flow10.9%
why
Before capital spending.
Free cash flownegative
why
OCF fell $77.7m short of capex — the dividend was not funded from free cash flow.
Nothing is marked as applying, deliberately. The basis that governs here is free cash flow, and this year it yields no ratio at all. The figure above is shown for completeness; treating it as the answer is the substitution this page exists to prevent.

Coverage rating 67 / 100 — Adequate. ? Peer standing 42/50Direction 25/30Stability 0/20

Free cash flow payout, last 6 years

Fiscal yearPayout
2024-12-3118.3%
2023-12-314.5%
2019-12-3165.8%
2018-12-315.0%
2014-12-3164.9%
2013-12-3123.3%
Coverage worsened sharply this year, 4.5% to 18.3%, after no clear trend before it. One year is not a trend, but it is worth knowing which direction the last one moved.

84% of the 31 energy here pay out more — comfortable for the sector.

The arithmetic

Where the figures came from

All public at sec.gov — you should not have to take our word for it.


Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.

Also on: rated adequate · when it files.

When this changes

Every figure above is recomputed whenever Peabody Energy files. The monthly letter carries what filed, what moved, and one finding computed across every company here.

Get the letter →