CNX RESOURCES CORP (CNX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNX - US12653C1080 - Common Stock
36.64 USD
-0.23 (-0.62%)
36.64 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CNX. CNX was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CNX was profitable.
- 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 of 3.28%. This is comparable to the rest of the industry: CNX outperforms 50.24% of its industry peers.
- CNX has a Return On Equity (7.10%) which is comparable to the rest of the industry.
- CNX has a Return On Invested Capital of 6.71%. This is in the better half 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 3 year average ROIC (10.96%) for CNX is well above the current ROIC(6.71%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 15.89% is fine compared to the rest of the industry. CNX outperforms 69.08% of its industry peers.
- CNX's Operating Margin of 36.96% is amongst the best of the industry. CNX outperforms 86.96% of its industry peers.
- CNX's Operating Margin has declined in the last couple of years.
- CNX has a Gross Margin of 70.08%. This is in the better half of the industry: CNX outperforms 78.74% of its industry peers.
- In the last couple of years the Gross Margin of CNX has declined.
| 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%
2. Health
2.1 Basic Checks
- CNX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for CNX has been reduced compared to 1 year ago.
- CNX has less shares outstanding than it did 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.
- Looking at the Altman-Z score, with a value of 1.28, CNX is in line with its industry, outperforming 49.28% 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.
- Looking at the Debt to Equity ratio, with a value of 0.55, CNX is in line with its industry, outperforming 44.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.81
WACC8.26%
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.
- CNX has a Current ratio of 0.34. This is amonst the worse of the industry: CNX underperforms 89.37% of its industry peers.
- A Quick Ratio of 0.31 indicates that CNX may have some problems paying its short term obligations.
- The Quick ratio of CNX (0.31) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 28.04% over the past year.
- 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.
- Looking at the last year, CNX shows a quite strong growth in Revenue. The Revenue has grown by 17.47% in the last year.
- CNX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.06% yearly.
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
- CNX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.27% yearly.
- Based on estimates for the next years, CNX will show a quite strong growth in Revenue. The Revenue will grow by 13.09% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.14 indicates a correct valuation of CNX.
- Compared to the rest of the industry, the Price/Earnings ratio of CNX is on the same level as its industry peers.
- CNX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.09, the valuation of CNX can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CNX is on the same level as its industry peers.
- CNX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 15.09 |
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.
- 84.54% of the companies in the same industry are more expensive than CNX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
- CNX's 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.
PEG (NY)0.68
PEG (5Y)1.06
EPS Next 2Y16.45%
EPS Next 3Y33.05%
5. Dividend
5.1 Amount
- No dividends for CNX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CNX RESOURCES CORP / CNX FAQ
What is the ChartMill fundamental rating of CNX RESOURCES CORP (CNX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CNX.
Can you provide the valuation status for CNX RESOURCES CORP?
ChartMill assigns a valuation rating of 6 / 10 to CNX RESOURCES CORP (CNX). This can be considered as Fairly Valued.
Can you provide the profitability details for CNX RESOURCES CORP?
CNX RESOURCES CORP (CNX) has a profitability rating of 5 / 10.
What is the financial health of CNX RESOURCES CORP (CNX) stock?
The financial health rating of CNX RESOURCES CORP (CNX) is 3 / 10.
What is the expected EPS growth for CNX RESOURCES CORP (CNX) stock?
The Earnings per Share (EPS) of CNX RESOURCES CORP (CNX) is expected to grow by 22.37% in the next year.