NEW YORK (TheStreet) -- CONSOL Energy (CNX) - Get CNX Resources Corporation Report stock is down 3.93% to $15.87 in late morning trading on Monday after the White House announced tighter regulations for the Clean Power Plan that will limit emissions from coal plants.
President Obama and Environmental Protection Agency Administrator Gina McCarthy will announce the final Clean Power Plan this afternoon.
The Clean Power Plan will set a limit to carbon pollution from power plants to reduce greenhouse gases.
The restrictions would reduce carbon emissions by 32% from 2005 levels by 2030, 9% more than the draft had proposed.
The plan will set individual performance rates for each coal plant depending on the energy usage by state.
The Clean Power Plan will be challenged in courts by industry groups who fear a hike in energy prices and lawmakers from states who rely on coal-based energy, Reuters reports.
CONSOL Energy is a coal, oil and natural gas company. Its coal mining business is focused in the Appalachian Basin in Pennsylvania and Virginia.
Separately, TheStreet Ratings team rates CONSOL ENERGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONSOL ENERGY INC (CNX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 2319.6% when compared to the same quarter one year ago, falling from -$24.93 million to -$603.30 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $65.85 million or 70.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- CNX's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.22 is very low and demonstrates very weak liquidity.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full analysis from the report here: CNX Ratings Report