DB:CGD

Stock Analysis Report

Executive Summary

CNX Resources Corporation, an independent oil and gas company, explores for, develops, and produces natural gas primarily in the Appalachian Basin.

Rewards

Trading at 63.2% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -31.7% per year for the next 3 years

Has a high level of debt

Highly volatile share price over past 3 months

Profit margins (17.1%) are lower than last year (63.3%)



Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has CNX Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.5%

CGD

1.6%

DE Oil and Gas

0.5%

DE Market


1 Year Return

-45.2%

CGD

80.3%

DE Oil and Gas

15.5%

DE Market

Return vs Industry: CGD underperformed the German Oil and Gas industry which returned 48.3% over the past year.

Return vs Market: CGD underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

CGDIndustryMarket
7 Day-11.5%1.6%0.5%
30 Day-19.6%-4.4%1.4%
90 Day-6.8%32.9%5.3%
1 Year-45.2%-45.2%86.5%80.3%19.2%15.5%
3 Year-66.1%-66.1%28.4%17.4%15.7%5.5%
5 Year-76.9%-77.0%329.8%261.1%27.3%10.1%

Price Volatility Vs. Market

How volatile is CNX Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CNX Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGD (€7.05) is trading below our estimate of fair value (€19.18)

Significantly Below Fair Value: CGD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CGD is good value based on its PE Ratio (5.1x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: CGD is good value based on its PE Ratio (5.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: CGD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CGD is good value based on its PB Ratio (0.3x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is CNX Resources forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGD's earnings are forecast to decline over the next 3 years (-31.7% per year).

Earnings vs Market: CGD's earnings are forecast to decline over the next 3 years (-31.7% per year).

High Growth Earnings: CGD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CGD's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: CGD's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CGD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CNX Resources performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGD has high quality earnings.

Growing Profit Margin: CGD's current net profit margins (17.1%) are lower than last year (63.3%).


Past Earnings Growth Analysis

Earnings Trend: CGD's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: CGD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CGD had negative earnings growth (-70.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-5.1%).


Return on Equity

High ROE: CGD's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CNX Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CGD's short term assets ($345.7M) do not cover its short term liabilities ($621.6M).

Long Term Liabilities: CGD's short term assets ($345.7M) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: CGD's debt to equity ratio (50.6%) is considered high.

Reducing Debt: CGD's debt to equity ratio has reduced from 61.6% to 50.6% over the past 5 years.

Debt Coverage: CGD's debt is well covered by operating cash flow (40.2%).

Interest Coverage: CGD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: CGD has a high level of physical assets or inventory.

Debt Coverage by Assets: CGD's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is CNX Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.5%industryaverage5.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CGD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CGD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CGD is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGD's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of CNX Resources's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Nick DeIuliis (50yo)

4.7yrs

Tenure

US$10,272,508

Compensation

Mr. Nicholas J. DeIuliis, also known as Nick, serves as a Director and the President and Chief Executive Officer of CNX Resources Corporation. Prior to the separation of CONSOL Energy Inc. into two separat ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD10.27M) is above average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

42yo

Average Age

Experienced Management: CGD's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: CGD's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€122,62525 Jun 19
John Clarkson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max Price€6.13
Buy€219,70925 Jun 19
Conifer Advisors, LLC
EntityCompany
Shares36,200
Max Price€6.07
Buy€222,89219 Jun 19
Conifer Advisors, LLC
EntityCompany
Shares34,150
Max Price€6.53
Buy€220,65512 Jun 19
Conifer Advisors, LLC
EntityCompany
Shares35,400
Max Price€6.23
Buy€61,84512 Jun 19
John Clarkson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max Price€6.18
Buy€220,75111 Jun 19
Conifer Advisors, LLC
EntityCompany
Shares34,200
Max Price€6.45
Buy€66,30010 Jun 19
John Clarkson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max Price€6.63
Buy€1,342,85131 May 19
Conifer Advisors, LLC
EntityCompany
Shares198,000
Max Price€6.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Nick DeIuliis (50yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$10.27m
  • Stephanie Gill

    VP, General Counsel & Corporate Secretary

    • Tyler Lewis

      VP of Investor Relations

      • Don Rush (36yo)

        Executive VP & CFO

        • Tenure: 2.4yrs
        • Compensation: US$2.64m
      • Jason Mumford (39yo)

        Chief Accounting Officer

        • Tenure: 2.2yrs
      • Chad Griffith (42yo)

        Executive VP & COO

        • Tenure: 0.5yrs
      • Olayemi Akinkugbe (45yo)

        Executive VP & Chief Excellence Officer

        • Tenure: 0.5yrs

      Board Members

      • Will Thorndike (55yo)

        Independent Chairman of the Board

        • Tenure: 3.7yrs
        • Compensation: US$574.17k
      • William Davis (77yo)

        Independent Director

        • Tenure: 16yrs
        • Compensation: US$397.50k
      • Bernie Lanigan (71yo)

        Independent Director

        • Tenure: 3.7yrs
        • Compensation: US$399.38k
      • John Clarkson (62yo)

        Independent Director

        • Tenure: 2.7yrs
        • Compensation: US$380.00k
      • Nick DeIuliis (50yo)

        President

        • Tenure: 4.7yrs
        • Compensation: US$10.27m
      • Maureen Lally-Green (70yo)

        Independent Director

        • Tenure: 6.6yrs
        • Compensation: US$380.00k
      • Ian McGuire (41yo)

        Non-Employee Director

        • Tenure: 0.5yrs

      Company Information

      CNX Resources Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: CNX Resources Corporation
      • Ticker: CGD
      • Exchange: DB
      • Founded: 1860
      • Industry: Oil and Gas Exploration and Production
      • Sector: Energy
      • Market Cap: US$1.304b
      • Listing Market Cap: US$1.176b
      • Shares outstanding: 186.59m
      • Website: https://www.cnx.com

      Number of Employees


      Location

      • CNX Resources Corporation
      • CNX Center
      • Suite 400
      • Canonsburg
      • Pennsylvania
      • 15317
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CNXNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1999
      CGDDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

      Biography

      CNX Resources Corporation, an independent oil and gas company, explores for, develops, and produces natural gas primarily in the Appalachian Basin. The company operates through two divisions, Exploration and Production (E&P), and Midstream. The E&P division produces pipeline quality natural gas primarily to gas wholesalers. This division owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 539,000 net Marcellus Shale acres; and 627,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 968,000 in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 308,000 net CBM acres, as well as 210,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. The Midstream division owns, operates, and develops natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. The company also offers gas gathering and water delivery solutions to third-parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 20:44
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.