Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 97.4% when compared to the same quarter one year prior, rising from $77.38 million to $152.74 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CONSOL ENERGY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- CNX, with its decline in revenue, underperformed when compared the industry average of 0.2%. Since the same quarter one year prior, revenues fell by 20.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for CONSOL ENERGY INC is rather low; currently it is at 20.20%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 12.20% is above that of the industry average.
- Net operating cash flow has significantly decreased to $138.46 million or 61.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
CONSOL Energy Inc. produces coal and natural gas for energy and raw material markets. The company is involved in the mining, preparation, and marketing steam coal primarily to electric power generation industry; and metallurgical coal to steel and coke producers. The company has a P/E ratio of 12.1, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Consol Energy has a market cap of $7.33 billion and is part of the
industry. Shares are down 13.9% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.