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Core Natural Resources, Inc. (CNR)
:CNR
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Core Natural Resources
(NYSE:CNR)
70Outperform
Positive Factors
Financial Performance
Management has already executed on strategies to achieve roughly one third of its $110M-$140M synergy guidance, and savings could ultimately exceed that range.
Stock Buybacks
CNR announced plans to return around 75% of free cash flow, including a sustaining quarterly dividend of $0.10/share, with the bulk directed to share repurchases backed by a $1.0B buyback authorization.
Negative Factors
Operational Challenges
The combustion event at Leer South will limit coking coal sales to 7.5M-8.0M tons, affecting the met segment in the first quarter.
Core Natural Resources (CNR) vs. S&P 500 (SPY)
Market Cap
$4.13B
Dividend Yield0.7%
Average Volume (3M)1.03M
Price to Earnings (P/E)7.4
Beta (1Y)0.85
Revenue Growth-13.20%
EPS Growth-51.56%
CountryUS
Employees2,076
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)9.61
Shares Outstanding54,016,724
10 Day Avg. Volume1,173,433
30 Day Avg. Volume1,031,385
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$113.67Price Target Upside48.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Core Natural Resources Business Overview & Revenue Model
Company DescriptionCore Natural Resources (CNR) is a diversified company operating in the energy and mining sectors. It specializes in the exploration, development, and production of natural resources, including oil, natural gas, and minerals. CNR is committed to sustainable extraction practices and aims to deliver high-quality resources to meet global demand while minimizing environmental impact.
How the Company Makes MoneyCNR generates revenue primarily through the sale of extracted resources such as oil, natural gas, and minerals. The company operates various extraction sites and sells these resources to refineries, utility companies, and industrial customers. Additional revenue streams include joint ventures and strategic partnerships with other companies in the energy and mining industries, which allow CNR to expand its operational capabilities and market reach. The company also invests in technology to improve extraction efficiency and reduce costs, further contributing to its profitability.
Core Natural Resources Financial Statement Overview
Summary
Core Natural Resources shows a stable financial position with a strong balance sheet and robust gross margins. However, recent declines in revenue and net income, coupled with decreasing free cash flow, suggest challenges in sustaining growth and profitability. The company should focus on reversing revenue declines and maintaining cash flow to support long-term stability.Income Statement
The income statement reveals a mixed performance. Gross Profit Margin is solid, indicating efficient production, but the Net Profit Margin has decreased significantly from the previous year. The absence of EBIT data limits comprehensive analysis. Revenue has seen fluctuations with a decline in the most recent year, which could be a concern for growth prospects.75
Positive
Balance Sheet
The balance sheet shows strong equity growth and a favorable debt-to-equity ratio, indicating financial stability. The company has managed to reduce its debt over recent years, enhancing its financial health. However, the Equity Ratio suggests a moderate reliance on liabilities, which should be monitored.80
Positive
Cash Flow
Cash flow indicates a decline in free cash flow, which impacts the company's ability to fund operations and investments internally. Operating cash flow remains strong relative to net income, which is a positive sign. However, the decrease in free cash flow poses a potential risk if the trend continues.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.15B | 2.51B | 2.28B | 1.26B | 879.46M | Gross Profit |
| 1.65B | 1.97B | 1.87B | 932.63M | 628.71M | EBIT |
| 265.23M | 747.68M | 863.72M | 150.30M | 30.59M | EBITDA |
| 576.37M | 1.05B | 812.96M | 323.33M | 150.51M | Net Income Common Stockholders |
| 286.40M | 655.89M | 466.98M | 34.11M | -13.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 460.23M | 281.30M | 273.07M | 149.91M | 50.85M | Total Assets |
| 2.88B | 2.68B | 2.70B | 2.57B | 2.52B | Total Debt |
| 213.74M | 212.33M | 404.18M | 673.94M | 712.80M | Net Debt |
| -194.50M | 12.96M | 131.11M | 524.02M | 661.95M | Total Liabilities |
| 1.31B | 1.33B | 1.54B | 1.90B | 1.97B | Stockholders Equity |
| 1.57B | 1.34B | 1.17B | 672.81M | 553.52M |
| Cash Flow | Free Cash Flow | |||
| 298.40M | 690.16M | 479.48M | 172.82M | 43.33M | Operating Cash Flow |
| 476.39M | 857.95M | 650.99M | 305.57M | 129.33M | Investing Cash Flow |
| -165.03M | -259.43M | -142.18M | -127.36M | -76.33M | Financing Cash Flow |
| -107.08M | -682.20M | -380.07M | -30.85M | -82.44M |
Core Natural Resources Technical Analysis
Neutral
76.41
Price Trends
88.70
Negative
103.09
Negative
100.58
Negative
Market Momentum
-5.14
Negative
45.69
Neutral
47.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNR, the sentiment is Neutral. The current price of 76.41 is above the 20-day moving average (MA) of 75.92, below the 50-day MA of 88.70, and below the 200-day MA of 100.58, indicating a neutral trend. The MACD of -5.14 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNR.
Core Natural Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.18B | 8.94 | 19.34% | 11.29% | -4.60% | -42.35% | |
72 Outperform | $1.68B | 4.78 | 10.41% | 2.33% | -14.50% | -46.36% | |
70 Outperform | $4.13B | 7.45 | 19.67% | 0.70% | -13.20% | -51.56% | |
60 Neutral | $1.85B | 9.96 | 11.64% | 0.36% | -14.81% | -71.49% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% | |
47 Neutral | $408.27M | ― | -6.98% | ― | -36.61% | -122.92% |
* Energy Sector Average
Performance Comparison
CNR
Core Natural Resources
76.41
-3.94
-4.90%
ARLP
Alliance Resource
24.79
7.64
44.55%
HNRG
Hallador Energy Company
9.58
1.76
22.51%
AMR
Alpha Metallurgical Resources
141.59
-172.24
-54.88%
BTU
Peabody Energy Comm
13.81
-10.98
-44.29%
Core Natural Resources Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -1.43% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Core Natural Resources' strong integration progress and capital return plans post-merger, despite challenges in global coal markets and the impact of Chinese tariffs. The company effectively managed a significant operational issue at Leer South and is well-positioned to leverage domestic market opportunities.Highlights
Strong Start for Core Natural Resources
Core Natural Resources has made significant progress in integrating operations post-merger, locking in one-third of projected synergies and resuming development work at Leer South ahead of schedule.
Robust Capital Return Framework
The company announced a $1 billion share repurchase authorization, aiming to return 75% of free cash flow to shareholders.
Synergy Achievements
Core has captured over $40 million in annualized synergy-driven value creation within five weeks post-merger.
Successful Reentry at Leer South
The Leer South mine resumed development work with continuous miners ahead of the expected timeline, showing effective crisis management.
Improved Financial Market Access
Core upsized its revolving credit facility to $600 million and reduced interest rates by 75 basis points.
Positive Outlook for Domestic Thermal Market
The domestic thermal market is tightening with increasing power prices and critical inventory levels, presenting opportunities for spot market sales.
Lowlights
Challenges in Global Coal Markets
Pricing is currently soft in both global metallurgical and high CV thermal coal markets, with API-2 and High-Vol A pricing near three-year lows.
Impact of Chinese Tariffs
The imposition of Chinese tariffs on U.S. coal has led to trade flow disruptions, although the company expects markets to realign.
Combustion Event at Leer South
The Leer South mine experienced a combustion event, causing temporary disruption, though the team managed to contain the issue effectively.
Weaker Commodity Price Backdrop
2025 is expected to be challenging with a weak commodity price backdrop affecting near-term cash flow.
Company Guidance
During the Core Natural Resources, Inc. Fourth Quarter 2024 Earnings Conference Call, the company provided guidance on several key metrics. Core announced a robust capital return framework targeting the return of 75% of free cash flow to shareholders, primarily through $1 billion in share repurchases, complemented by a $0.10 per share quarterly dividend. The company expects to achieve synergy-driven value creation of over $40 million annually, with a projected total savings of $110 million to $140 million per year. For 2025, Core anticipates high CV thermal sales of 29 to 31 million tons at $61 to $63 per ton, with approximately 80% contracted. The metallurgical segment is projected to sell 7.5 to 8 million tons of coking coal, excluding 1.5 million tons of thermal byproduct, at $135.82 per ton for committed tons and a cash cost of $96 to $100 per ton. The Powder River Basin segment expects to sell 37 million tons at $14.78 per ton, with cash costs between $13.75 and $14.25 per ton. The company aims to maintain financial flexibility, targeting net cash on hand with $300 million in municipal bond debt. Core's capital expenditures for 2025 are expected to be $300 million to $330 million, with cash-based SG&A projected at $110 million to $125 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.