Alphanso’s AI Stock Research picked CEIX as one of the top stocks of the year.
Alphanso rating: 8.5/10
Return potential: 21%
This pick stands out because in the current high natural gas and oil prices environment, demand for coal from overseas markets is expected to continue providing support for US coal production through exports.
Fundamental Metrics:
- The free-cash-flow yield of 19.8% trading at 4.6 PE (fwd) indicates the company’s ability to generate cash flows making it a very sustainable business trading at a relatively low price.
- Revenue growth (fwd) of 20.3% vs. 12.8% sector median and EBITDA growth (fwd) of 29.8% vs. 18.2% sector median suggests that its products and services are highly competitive.
- Operating margin of 36.6% vs. sector median 24.3% suggests strong pricing power and economies of scale
- The ROE of 69.7% vs. sector median of 21.57%, with only a 18% D/E ratio indicating that its management is highly efficient and shareholder-friendly.
- The company has adapted to the challenging market by focusing on the export market, where demand remains strong, particularly in the industrial sector.
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $116.4 – $120.6
