CNX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While CNX is still in line with the averages on profitability rating, there are concerns on its financial health. CNX has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CNX had positive earnings in the past year.
In the past year CNX had a positive cash flow from operations.
In the past 5 years CNX reported 4 times negative net income.
In the past 5 years CNX always reported a positive cash flow from operatings.

1.2 Ratios

CNX has a Return On Assets (3.28%) which is in line with its industry peers.
CNX has a Return On Equity of 7.10%. This is comparable to the rest of the industry: CNX outperforms 48.79% of its industry peers.
CNX's Return On Invested Capital of 6.71% is fine compared to the rest of the industry. CNX outperforms 61.35% of its industry peers.
CNX had an Average Return On Invested Capital over the past 3 years of 10.96%. This is significantly below the industry average of 21.94%.
The last Return On Invested Capital (6.71%) for CNX is well below the 3 year average (10.96%), which needs to be investigated, but indicates that CNX had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	3.28%
ROE	7.1%
ROIC	6.71%

ROA(3y)5.74%

ROA(5y)1.01%

ROE(3y)10.81%

ROE(5y)1.6%

ROIC(3y)10.96%

ROIC(5y)N/A

1.3 Margins

CNX has a better Profit Margin (15.89%) than 69.08% of its industry peers.
The Operating Margin of CNX (36.96%) is better than 86.96% of its industry peers.
In the last couple of years the Operating Margin of CNX has declined.
CNX's Gross Margin of 70.08% is fine compared to the rest of the industry. CNX outperforms 78.74% of its industry peers.
CNX's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	36.96%
PM (TTM)	15.89%
GM	70.08%

OM growth 3Y-33.34%

OM growth 5Y-2.26%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-9.84%

GM growth 5Y-3.14%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNX is creating some value.
CNX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNX has been reduced compared to 5 years ago.
CNX has about the same debt/assets ratio as last year.

2.2 Solvency

Based on the Altman-Z score of 1.28, we must say that CNX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.28, CNX perfoms like the industry average, outperforming 48.31% of the companies in the same industry.
CNX has a debt to FCF ratio of 4.54. This is a neutral value as CNX would need 4.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.54, CNX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CNX has a Debt/Equity ratio of 0.55. This is a neutral value indicating CNX is somewhat dependend on debt financing.
CNX's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. CNX outperforms 44.93% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	4.54
Altman-Z	1.28

ROIC/WACC0.79

WACC8.45%

2.3 Liquidity

CNX has a Current Ratio of 0.34. This is a bad value and indicates that CNX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.34, CNX is doing worse than 89.37% of the companies in the same industry.
A Quick Ratio of 0.31 indicates that CNX may have some problems paying its short term obligations.
CNX has a Quick ratio of 0.31. This is amonst the worse of the industry: CNX underperforms 88.89% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.34
Quick Ratio	0.31

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CNX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.04%, which is quite impressive.
Measured over the past years, CNX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.24% on average per year.
The Revenue has grown by 17.47% in the past year. This is quite good.
The Revenue has been decreasing by -4.06% on average over the past years.

EPS 1Y (TTM)28.04%

EPS 3Y4.25%

EPS 5Y14.24%

EPS Q2Q%19.51%

Revenue 1Y (TTM)17.47%

Revenue growth 3Y-18.3%

Revenue growth 5Y-4.06%

Sales Q2Q%37.63%

3.2 Future

The Earnings Per Share is expected to grow by 27.27% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.09% on average over the next years. This is quite good.

EPS Next Y22.37%

EPS Next 2Y16.45%

EPS Next 3Y33.05%

EPS Next 5Y27.27%

Revenue Next Year25.54%

Revenue Next 2Y12.83%

Revenue Next 3Y13.09%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.54, the valuation of CNX can be described as correct.
CNX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.39. CNX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.49, the valuation of CNX can be described as correct.
CNX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.72. CNX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	15.54
Fwd PE	15.49

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNX indicates a somewhat cheap valuation: CNX is cheaper than 69.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNX is valued cheaper than 85.02% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.82
EV/EBITDA	6.11

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CNX's earnings are expected to grow with 33.05% in the coming years. This may justify a more expensive valuation.