CNX

We rate CNX Resources Corp (CNX) as a Hold with a composite score of 57.4/100 at a current price of $37.56. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in stability (90th percentile) and value (70th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (37th percentile) and momentum (46th percentile) tempers our overall conviction. We assign a Narrow Moat rating (53/100), Medium uncertainty, and Poor capital allocation.

Key items to watch: sustainability of the current growth rate; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

CNX Resources Corp holds a top-quartile position (#0 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 57.4/100 places it at rank #977 in our full 7,333-stock universe. At $4.5B in market capitalization, CNX Resources Corp is a mid-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 82%, though momentum at the 46th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 83% (+39.8pp vs sector) narrow to operating margins of -39% (-51.5pp vs sector) and net margins of -36.2%, yielding a gross-to-net conversion rate of -44%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $37.56, CNX Resources Corp is trading near fair value based on current fundamentals. Our value factor score of 70/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 11.5x (roughly in line with the sector median of 13.7x), EV/EBITDA of 11.3x (at a premium), P/B of 1.3x, P/S of 2.8x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Medium uncertainty rating to CNX Resources Corp. The stock presents a balanced risk profile: current negative profitability (net margin -36.2%) and low beta of 0.43 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: current negative profitability (net margin -36.2%); low beta of 0.43 — while defensive, this may indicate limited upside participation in bull markets; the combination of leverage (56% D/E) and thin margins (-36.2% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 90th percentile and quality factor at the 56th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 83% provide a buffer against cost pressures; above-average stability (90th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate CNX Resources Corp's capital allocation as Poor. Key concerns include negative profitability. Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — CNX Resources Corp significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, CNX Resources Corp receives a Hold rating with a composite score of 57.4/100 (rank #977 of 7,333). Our quantitative framework assigns a Narrow Moat (53/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 60/100.

Our analysis supports a neutral stance on CNX Resources Corp. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.