NYSE:CNM is not too expensive for the growth it is showing.

Our stock screening tool has pinpointed CORE & MAIN INC-CLASS A (NYSE:CNM) as a growth stock that isn't overvalued. NYSE:CNM is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NYSE:CNM's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CNM has earned a 7 for growth:

• 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 105.72% yearly.
• Looking at the last year, CNM shows a quite strong growth in Revenue. The Revenue has grown by 8.46% in the last year.
• The Revenue has been growing by 25.21% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 14.57% on average over the next years. This is quite good.

Looking at the 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 24.79, CNM is valued a bit cheaper.
• CNM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
• Based on the Price/Free Cash Flow ratio, CNM is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
• CNM has a very decent profitability rating, which may justify a higher PE ratio.

Evaluating Health: NYSE:CNM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CNM, the assigned 7 reflects its health status:

• An Altman-Z score of 3.77 indicates that CNM is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.77, CNM is doing good in the industry, outperforming 68.63% of the companies in the same industry.
• CNM has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.87, CNM is in the better half of the industry, outperforming 66.67% 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.
• With a decent Current ratio value of 2.59, CNM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
• CNM has a better Quick ratio (1.53) than 74.51% of its industry peers.

Exploring NYSE:CNM's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CNM has achieved a 7:

• CNM's Return On Assets of 7.16% is fine compared to the rest of the industry. CNM outperforms 68.63% of its industry peers.
• CNM's Return On Equity of 21.30% is fine compared to the rest of the industry. CNM outperforms 62.75% of its industry peers.
• With an excellent Return On Invested Capital value of 14.92%, CNM belongs to the best of the industry, outperforming 80.39% 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.
• CNM's Profit Margin has improved in the last couple of years.
• The Operating Margin of CNM (11.56%) is better than 64.71% 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of CNM for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.