CNX Midstream Partners LP (NYSE:CNXM) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CNXM, it has a a strong track record of performance and a buoyant growth outlook not yet reflected in the share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on CNX Midstream Partners here.
Exceptional growth potential, good value and pays a dividend
Investors in search of impressive top-line expansion should look no further than CNXM, with its expected 59.49% revenue growth in the upcoming year. This underlies the notable 29.82% return on equity over the next few years leading up to 2021. CNXM delivered a satisfying double-digit returns of 27.28% in the most recent year Unsurprisingly, CNXM surpassed the Oil and Gas industry return of 11.31%, which gives us more confidence of the company’s capacity to drive earnings going forward.
CNXM’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CNXM’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, CNXM’s share price is trading below the group’s average. This bolsters the proposition that CNXM’s price is currently discounted.
For CNX Midstream Partners, I’ve compiled three pertinent factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does CNXM return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CNXM as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CNXM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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.