Investment Thesis
CNX exhibits strong commodity-driven profitability (58% operating margin, 44% net margin) with robust revenue growth (+76.8% YoY) and positive free cash flow generation ($107.6M). However, a critical liquidity position (current ratio 0.49x, only $3.7M cash) combined with flat net income growth despite surging revenue creates elevated financial risk if commodity prices normalize or working capital demands spike.
Strengths
- Exceptional operating margins (58.2%) demonstrating pricing power in commodity business
- Strong revenue growth of 76.8% YoY capturing market demand environment
- Positive free cash flow ($107.6M) with healthy operating cash generation ($277.5M)
- Manageable debt service with 12.2x interest coverage ratio
Risks
- CRITICAL: Liquidity crisis with current ratio 0.49x and only $3.7M cash against $4.5B liabilities
- Net income flat (0% YoY growth) despite 76.8% revenue surge indicates margin compression or heavy capex burden
- Fundamental commodity price dependency—revenue growth reflects market prices, not operational improvements
- Weak capital efficiency metrics (ROE 7.5%, ROA 3.8%) suggest poor capital deployment despite high margins
Key Metrics to Watch
- Cash balance and working capital trends (liquidity sustainability critical)
- Net income growth trajectory (concerns if margin compression persists)
- Free cash flow-to-debt ratio (ability to de-leverage)
- Commodity price environment (primary revenue driver)
Financial Metrics
Revenue
786.7M
Net Income
348.1M
EPS (Diluted)
$2.18
Free Cash Flow
107.6M
Total Assets
9.1B
Cash
3.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
58.2%
Net Margin
44.3%
ROE
7.5%
ROA
3.8%
FCF Margin
13.7%
Balance Sheet & Liquidity
Current Ratio
0.49x
Quick Ratio
0.46x
Debt/Equity
0.51x
Debt/Assets
49.3%
Interest Coverage
12.23x
Long-term Debt
2.4B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T17:17:35.001119 |
Data as of: 2026-03-31 |
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