Investors with a long-term horizong may find it valuable to assess CNX Midstream Partners LP’s (NYSE:CNXM) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how CNX Midstream Partners is currently performing. View our latest analysis for CNX Midstream Partners
Did CNXM’s recent earnings growth beat the long-term trend and the industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to examine different stocks on a more comparable basis, using the latest information. For CNX Midstream Partners, its most recent trailing-twelve-month earnings is US$106.14M, which compared to the prior year’s figure, has grown by a somewhat soft 7.64%. Since these figures may be fairly nearsighted, I’ve created an annualized five-year value for CNX Midstream Partners’s earnings, which stands at US$63.36M This suggests that, generally, CNX Midstream Partners has been able to consistently improve its net income over the past few years as well.
What’s enabled this growth? Well, let’s take a look at if it is only a result of an industry uplift, or if CNX Midstream Partners has seen some company-specific growth. In the past couple of years, CNX Midstream Partners expanded its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the US oil and gas industry has been growing its average earnings by double-digit 25.00% in the prior year, . This is a turnaround from a volatile drop of -5.41% in the previous few years. This shows that, in the recent industry expansion, CNX Midstream Partners has not been able to realize the gains unlike its industry peers.
What does this mean?
CNX Midstream Partners’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as CNX Midstream Partners gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research CNX Midstream Partners to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CNXM’s future growth? Take a look at our free research report of analyst consensus for CNXM’s outlook.
- Financial Health: Is CNXM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.