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NYSE:CNM is showing decent growth, but is still valued reasonably.

By Mill Chart

Last update: Nov 13, 2023

CORE & MAIN INC-CLASS A (NYSE:CNM) was identified as an affordable growth stock by our stock screener. NYSE:CNM is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

A Closer Look at Growth for NYSE:CNM

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CNM, the assigned 7 reflects its growth potential:

  • CNM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.81%, which is quite impressive.
  • CNM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 105.30% yearly.
  • The Revenue has grown by 8.46% in the past year. This is quite good.
  • CNM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.21% yearly.
  • The Earnings Per Share is expected to grow by 14.57% on average over the next years. This is quite good.

Exploring NYSE:CNM's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CNM has received a 5 out of 10:

  • Compared to an average S&P500 Price/Earnings ratio of 23.45, CNM is valued a bit cheaper.
  • The average S&P500 Price/Forward Earnings ratio is at 18.84. CNM is valued slightly cheaper when compared to this.
  • 82.69% of the companies in the same industry are more expensive than CNM, based on the Price/Free Cash Flow ratio.
  • CNM has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NYSE:CNM's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CNM was assigned a score of 7 for health:

  • CNM has an Altman-Z score of 3.54. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.54, CNM is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
  • The Debt to FCF ratio of CNM is 1.87, which is an excellent value as it means it would take CNM, only 1.87 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.87, CNM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • 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.
  • A Current Ratio of 2.59 indicates that CNM has no problem at all paying its short term obligations.
  • CNM has a better Current ratio (2.59) than 76.92% of its industry peers.
  • With a decent Quick ratio value of 1.53, CNM is doing good in the industry, outperforming 75.00% of the companies in the same industry.

Exploring NYSE:CNM's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CNM scores a 7 out of 10:

  • CNM's Return On Assets of 7.16% is fine compared to the rest of the industry. CNM outperforms 65.38% of its industry peers.
  • CNM has a better Return On Equity (21.30%) than 73.08% of its industry peers.
  • With an excellent Return On Invested Capital value of 14.92%, CNM belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
  • The 3 year average ROIC (9.76%) for CNM is below the current ROIC(14.92%), indicating increased profibility in the last year.
  • In the last couple of years the Profit Margin of CNM has grown nicely.
  • CNM's Operating Margin of 11.56% is fine compared to the rest of the industry. CNM outperforms 75.00% of its industry peers.
  • CNM's Operating Margin has improved in the last couple of years.
  • In the last couple of years the Gross Margin of CNM has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CNM

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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CORE & MAIN INC-CLASS A

NYSE:CNM (2/23/2024, 9:04:43 AM)

46.43

+0.17 (+0.37%)

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