CORE & MAIN INC-CLASS A (CNM)
US21874C1027 - Common Stock
Taking everything into account, CNM scores 5 out of 10 in our fundamental rating. CNM was compared to 51 industry peers in the Trading Companies & Distributors industry. While CNM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CNM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CNM was profitable.
In the past year CNM had a positive cash flow from operations.
CNM had positive earnings in each of the past 5 years.
CNM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.32%, CNM is doing good in the industry, outperforming 74.51% of the companies in the same industry.
CNM has a Return On Equity of 25.57%. This is in the better half of the industry: CNM outperforms 74.51% of its industry peers.
CNM has a Return On Invested Capital of 14.08%. This is in the better half of the industry: CNM outperforms 78.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNM is in line with the industry average of 11.26%.
The last Return On Invested Capital (14.08%) for CNM is above the 3 year average (12.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 25.57% | ||
| ROIC | 14.08% |
ROA(3y)6.17%
ROA(5y)4.19%
ROE(3y)19.68%
ROE(5y)14.21%
ROIC(3y)12.93%
ROIC(5y)9.55%
1.3 Margins
CNM has a Profit Margin (5.54%) which is in line with its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM's Operating Margin of 11.10% is fine compared to the rest of the industry. CNM outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CNM has grown nicely.
With a Gross Margin value of 27.13%, CNM perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
In the last couple of years the Gross Margin of CNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | 5.54% | ||
| GM | 27.13% |
OM growth 3Y29.72%
OM growth 5Y20.79%
PM growth 3Y65.47%
PM growth 5Y37.09%
GM growth 3Y4%
GM growth 5Y4.17%
2. Health
2.1 Basic Checks
CNM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CNM has less shares outstanding
The debt/assets ratio for CNM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.10 indicates that CNM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.10, CNM is doing good in the industry, outperforming 74.51% of the companies in the same industry.
CNM has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
CNM has a better Debt to FCF ratio (1.82) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CNM has dependencies on debt financing.
CNM's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. CNM is outperformed by 62.75% of its industry peers.
Even though the debt/equity ratio score it not favorable for CNM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.55
WACC9.09%
2.3 Liquidity
A Current Ratio of 2.29 indicates that CNM has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.29, CNM is doing good in the industry, outperforming 60.78% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that CNM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CNM is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.49% over the past year.
The Earnings Per Share has been growing by 60.95% on average over the past years. This is a very strong growth
CNM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
CNM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.92% yearly.
EPS 1Y (TTM)14.49%
EPS 3Y108.01%
EPS 5Y60.95%
EPS growth Q2Q8.57%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y22.54%
Revenue growth 5Y15.92%
Revenue growth Q2Q4.8%
3.2 Future
The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
CNM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y9.19%
EPS Next 2Y10.46%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue Next Year11.04%
Revenue Next 2Y8.08%
Revenue Next 3Y8.19%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.38, the valuation of CNM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CNM.
Compared to an average S&P500 Price/Earnings ratio of 28.60, CNM is valued at the same level.
A Price/Forward Earnings ratio of 23.24 indicates a rather expensive valuation of CNM.
CNM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CNM is more expensive than 68.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNM to the average of the S&P500 Index (20.15), we can say CNM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than CNM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNM indicates a somewhat cheap valuation: CNM is cheaper than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 15.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNM has a very decent profitability rating, which may justify a higher PE ratio.
CNM's earnings are expected to grow with 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.76
PEG (5Y)0.42
EPS Next 2Y10.46%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CORE & MAIN INC-CLASS A
NYSE:CNM (5/17/2024, 7:04:00 PM)
After market: 60.15 0 (0%)60.15
-0.63 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 23.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.76
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 25.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.1% | ||
| PM (TTM) | 5.54% | ||
| GM | 27.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.49%
EPS 3Y108.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.77%
Revenue growth 3Y22.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y