Core Natural Resources: Merger Raised Leverage And Weighed On Margins
Summarize this article with:
Andres Veurink251 FollowersFollow5ShareSavePlay(12min)CommentsSummaryCore Natural Resources is rated a sell due to disappointing post-merger margin performance and a bleak long-term coal outlook.Thermal coal EBITDA margins remain flat despite a 25.9% rise in revenue per ton, as higher cash costs offset gains.Metallurgical segment margins have collapsed to 5.9% from 50.1% YoY, with little demand growth expected through 2027.Buybacks continue despite negative net income and increased dilution, raising questions about capital allocation amid weak free cash flow. Vladimir Razguliaev/iStock via Getty Images Investment Thesis Core Natural Resources, Inc. (CNR) has had 3 quarters now of full operations following the completed merger in January between CONSOL and Arch Resources. However, looking at the numbers it seems that theThis article was written byAndres Veurink251 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.