Peabody Energy Corporation (BTU) vs NACCO Industries, Inc. (NC)

Peabody Energy Corporation and NACCO Industries, Inc. are both Thermal Coal companies. Peabody Energy Corporation is the larger, with a market value of $2.9B against $253.7M — 11.5× the size. Peabody Energy Corporation has negative trailing earnings, so its P/E is not meaningful; NACCO Industries, Inc. trades at 14.8×. NACCO Industries, Inc. grew revenue faster over the last twelve months: 4.74% against −0.68%. NACCO Industries, Inc. has the higher net margin (6.21% vs −4.56%) and the higher return on invested capital (2.83% vs −4.48%). Both pay a dividend; NACCO Industries, Inc. yields more (3.00% vs 1.26%). Across the 21 metrics below, NACCO Industries, Inc. leads on 16 and Peabody Energy Corporation on 5.

Valuation

Metric BTU NC Thermal Coal median
P/E n/m 14.84 —
P/S 0.73 0.93 1.07
P/B 0.88 0.59 1.23
Price to free cash flow n/m n/m —
EV/EBITDA 14.15 14.42 11.83
EV/Sales 0.68 1.20 1.20
Earnings yield (6.28%) 6.74% 6.74%
Free cash flow yield (5.24%) (0.57%) 5.93%

Profitability

Metric BTU NC Thermal Coal median
Gross margin 10.40% 18.49% 18.49%
Operating margin (5.56%) 8.29% 8.29%
Net margin (4.56%) 6.21% 6.21%
Free cash flow margin (3.80%) (0.52%) 6.33%
Return on equity (5.24%) 4.07% 4.07%
Return on assets (3.26%) 2.64% 2.64%
Return on invested capital (4.48%) 2.83% 2.83%

Growth

Metric BTU NC Thermal Coal median
Revenue growth (TTM) (0.68%) 4.74% (0.68%)
EPS growth (last fiscal year) (115.93%) (48.35%) (48.35%)
Revenue growth, 5-year CAGR 6.03% 16.63% 10.57%
Net income growth, 5-year CAGR 0.00% 3.51% 0.00%

Health

Metric BTU NC Thermal Coal median
Debt to equity 0.10 0.28 0.12
Current ratio 2.01 3.30 2.01
Net debt to EBITDA (0.78) 1.07 0.05

Dividend

Metric BTU NC Thermal Coal median
Dividend yield 1.26% 3.00% 2.67%
Payout ratio — 0.45 —

Size

Metric BTU NC Thermal Coal median
Market cap 2.93b 253.72m 2.93b

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