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Peabody EnergySTU:PBE -1.47%49 Operating Margin % is -9.50% as of Jun. 2026. GuruFocus rates STU:PBE with a GF Score™ of 49/100 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 131 Other Energy Sources companies, Peabody Energy ranks worse than 73.28% on this metric.
Peabody Energy (STU:PBE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Peabody Energy Operating Margin % Related Terms
Peabody Energy Operating Margin % Historical Data
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The historical data trend for Peabody Energy's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:PBE vs ARLP, CNR, NRP: Operating Margin % Comparison
For the Thermal Coal subindustry, Peabody Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Peabody Energy Operating Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Peabody Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Peabody Energy's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Peabody Energy's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Peabody Energy (STU:PBE) has a Operating Margin % of -9.50% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Peabody Energy and its competitors. According to the industry distribution chart, Peabody Energy ranks #96 out of 131 companies in the Other Energy Sources industry, placing it in the top 73.3%.
Is Peabody Energy's Operating Margin % too high?
Peabody Energy's current Operating Margin % is -9.50%. Based on the distribution chart, Peabody Energy ranks #96 out of 131 companies in the Other Energy Sources industry, which is below the industry midpoint. Overall, Peabody Energy has a GF Score™ of 49/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Peabody Energy's Operating Margin % compare to ARLP and CNR?
According to the Other Energy Sources industry distribution chart, Peabody Energy ranks #96 out of 131 companies for Operating Margin %. This places Peabody Energy in the lower half of its industry. The industry median Operating Margin % is 4.67. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.67, based on 131 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Peabody Energy and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peabody Energy's current Operating Margin % is -9.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peabody Energy stock overvalued right now?
Based on GuruFocus' analysis, Peabody Energy (STU:PBE) is currently considered Modestly Undervalued. The current Operating Margin % is -9.50%. Peabody Energy's overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Peabody Energy (STU:PBE), the current Operating Margin % is -9.50% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Peabody Energy Corp is a producer of metallurgical and thermal coal. It also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts. The company operates in the following segment: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other. The Seaborne Thermal segment generates the majority of the revenue for the company. A substantial part of its overall revenue is generated from its customers in the United States, and rest from Japan, China, Australia, Taiwan, and other regions.
49GF Score
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