A Fresh Look at CNX Resources’s Valuation as It Targets Carbon-Neutral Energy for Data Center Growth

CNX Resources (CNX) has partnered with JLL to market a 1,500-acre site near Pittsburgh that offers natural gas reserves as well as a carbon-neutral energy solution. This initiative targets the increasing demand for cleaner power in new data center development.

See our latest analysis for CNX Resources.

CNX Resources’ recent collaboration to offer carbon-neutral energy for data center growth comes as the company’s short-term share price momentum is modestly positive, with a 1-month return of 8 percent, despite a year-to-date dip. Over the long run, patient investors have seen an impressive 5-year total shareholder return of 233 percent. This suggests solid long-term value even as short-term sentiment continues to fluctuate with project news and shifting risk perceptions.

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With such robust long-term gains, but a lack of near-term share price momentum, investors may be wondering if CNX is currently undervalued or if the market has already factored in its future growth prospects.

Most Popular Narrative: 3.7% Overvalued

With the last close at $32.74 and the most widely tracked narrative placing fair value a bit lower, investors may be questioning what justifies the stretched price tag. The next insight is at the heart of the future value story driving this premium.

Ongoing operational improvements, particularly efficiency gains and cost reductions in Utica and Marcellus wells, are lowering capital and operating expenditures per unit. These developments support structurally higher margins and improved earnings sustainability over the long term.

Read the complete narrative.

How do efficiency gains, margin upgrades, and disciplined expansion come together to create the latest fair value estimate? The real story is in a radical set of numbers for revenue, profits, and the multiple analysts expect this company to command in just a few years. Curious what assumptions have buyers betting on more upside? Click to see which future forecasts are turning heads in this hot debate.

Result: Fair Value of $31.57 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unexpected regulatory shifts or slower than expected demand from data centers could quickly challenge the optimistic outlook built into today’s valuation.

Find out about the key risks to this CNX Resources narrative.

Another View: Discounted Cash Flow Tells a Different Story

While analysts' consensus valuation suggests CNX is fairly priced, the SWS DCF model paints a more dramatic picture. According to this approach, CNX shares are trading significantly below their estimated fair value. This outcome implies substantial upside if current forecasts hold true. Which lens best captures the company's real potential?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CNX Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own CNX Resources Narrative

If you have a different take or want to dig into the data and draw your own conclusions, it’s easy to build your unique view in just a few minutes with Do it your way.

A great starting point for your CNX Resources research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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