Cnx Resources Corp Stock Beneish M Score

CNX Stock  USD 40.64  0.53  1.32%   
This module uses fundamental data of CNX Resources to approximate the value of its Beneish M Score. CNX Resources M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out CNX Resources Piotroski F Score and CNX Resources Altman Z Score analysis.
  
At this time, CNX Resources' Short Term Debt is fairly stable compared to the past year. Long Term Debt is likely to rise to about 1.9 B in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 2 B in 2024. At this time, CNX Resources' Interest Coverage is fairly stable compared to the past year. PFCF Ratio is likely to rise to 25.24 in 2024, whereas Price To Sales Ratio is likely to drop 1.18 in 2024.
At this time, it appears that CNX Resources Corp is a possible manipulator. The earnings manipulation may begin if CNX Resources' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by CNX Resources executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of CNX Resources' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.71
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.61

Focus
Asset Quality

3.01

Focus
Expense Coverage

0.73

Focus
Gross Margin Strengs

0.82

Focus
Accruals Factor

0.73

Focus
Depreciation Resistance

0.94

Focus
Net Sales Growth

1.56

Focus
Financial Leverage Condition

0.89

Focus

CNX Resources Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if CNX Resources' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables127.3 M134 M
Notably Down
Slightly volatile
Total Revenue2.3 B1.5 B
Way Up
Slightly volatile
Total Assets8.2 B8.6 B
Sufficiently Down
Pretty Stable
Total Current Assets631.8 M421.8 M
Way Up
Slightly volatile
Non Current Assets Total7.4 B8.2 B
Moderately Down
Pretty Stable
Property Plant EquipmentB8.4 B
Fairly Down
Pretty Stable
Depreciation And Amortization387.2 M433.6 M
Moderately Down
Pretty Stable
Selling General Administrative142.4 M125.3 M
Moderately Up
Pretty Stable
Total Current Liabilities794.1 M823 M
Sufficiently Down
Slightly volatile
Non Current Liabilities Total4.4 B3.4 B
Significantly Up
Slightly volatile
Net Debt1.9 B2.4 B
Significantly Down
Very volatile
Short Term Debt458.8 M437 M
Sufficiently Up
Pretty Stable
Long Term Debt1.9 B1.9 B
Slightly Up
Pretty Stable
Total Cash From Operating Activities761.2 M814.6 M
Significantly Down
Pretty Stable
Long Term Investments13.7 M14.4 M
Notably Down
Slightly volatile
Gross Profit Margin0.280.3433
Significantly Down
Pretty Stable

CNX Resources Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between CNX Resources' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards CNX Resources in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find CNX Resources' degree of accounting gimmicks and manipulations.

About CNX Resources Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

2 Billion

At this time, CNX Resources' Other Operating Expenses is fairly stable compared to the past year.

CNX Resources Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as CNX Resources. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables209.6M150.3M339.1M354.6M134.0M127.3M
Total Revenue1.5B1.1B2.4B3.9B1.5B2.3B
Total Assets9.1B8.0B8.1B8.5B8.6B8.2B
Total Current Assets498.1M273.3M459.8M573.8M421.8M631.8M
Net Debt2.9B2.5B2.3B2.4B2.4B1.9B
Short Term Debt68.8M141.5M47.0M96.6M437.0M458.8M
Long Term Debt2.8B2.4B2.2B2.2B1.9B1.9B
Operating Income253.8M(101.4M)1.1B2.6B311.2M472.7M
Investments(1.1B)(439.0M)(420.6M)(528.3M)(576.0M)(604.8M)
Gross Profit Margin0.440.340.120.570.710.28

CNX Resources ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, CNX Resources' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CNX Resources' managers, analysts, and investors.
Environmental
Governance
Social

About CNX Resources Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CNX Resources Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CNX Resources using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CNX Resources Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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