CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
NYSE:CNM - New York Stock Exchange, Inc. - US21874C1027 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CNM. CNM was compared to 49 industry peers in the Trading Companies & Distributors industry. CNM has an excellent profitability rating, but there are some minor concerns on its financial health. CNM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CNM had positive earnings in the past year.
CNM had a positive operating cash flow in the past year.
Each year in the past 5 years CNM has been profitable.
Of the past 5 years CNM 4 years had a positive operating cash flow.
1.2 Ratios
CNM has a better Return On Assets (7.00%) than 71.43% of its industry peers.
CNM's Return On Equity of 24.20% is amongst the best of the industry. CNM outperforms 87.76% of its industry peers.
The Return On Invested Capital of CNM (11.19%) is better than 77.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNM is above the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 24.2% | ||
| ROIC | 11.19% |
ROA(3y)7.26%
ROA(5y)5.33%
ROE(3y)23.57%
ROE(5y)17.76%
ROIC(3y)13.05%
ROIC(5y)10.52%
1.3 Margins
The Profit Margin of CNM (5.52%) is better than 61.22% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM's Operating Margin of 9.66% is fine compared to the rest of the industry. CNM outperforms 65.31% of its industry peers.
CNM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.61%, CNM is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 5.52% | ||
| GM | 26.61% |
OM growth 3Y4.39%
OM growth 5Y16.07%
PM growth 3Y18.52%
PM growth 5Y35.35%
GM growth 3Y1.32%
GM growth 5Y2.7%
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.
The number of shares outstanding for CNM has been reduced compared to 1 year ago.
The number of shares outstanding for CNM has been reduced compared to 5 years ago.
Compared to 1 year ago, CNM has a worse debt to assets ratio.
2.2 Solvency
CNM has an Altman-Z score of 3.52. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.52, CNM is doing good in the industry, outperforming 65.31% of the companies in the same industry.
CNM has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as CNM would need 3.86 years to pay back of all of its debts.
CNM has a better Debt to FCF ratio (3.86) than 67.35% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that CNM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.32, CNM is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.12
WACC10.02%
2.3 Liquidity
CNM has a Current Ratio of 2.34. This indicates that CNM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.34, CNM is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that CNM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, CNM is in line with its industry, outperforming 55.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for CNM have decreased by -2.95% in the last year.
The Earnings Per Share has been growing by 64.38% on average over the past years. This is a very strong growth
The Revenue has grown by 11.03% in the past year. This is quite good.
CNM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.04% yearly.
EPS 1Y (TTM)-2.95%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%17.92%
3.2 Future
CNM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.01% yearly.
Based on estimates for the next years, CNM will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y6.77%
EPS Next 2Y11.02%
EPS Next 3Y12.01%
EPS Next 5YN/A
Revenue Next Year4.37%
Revenue Next 2Y4.37%
Revenue Next 3Y3.94%
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
With a Price/Earnings ratio of 23.05, CNM is valued on the expensive side.
CNM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CNM to the average of the S&P500 Index (27.85), we can say CNM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.59, the valuation of CNM can be described as rather expensive.
CNM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.77. CNM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 21.59 |
4.2 Price Multiples
CNM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CNM is more expensive than 63.27% of the companies in the same industry.
77.55% of the companies in the same industry are more expensive than CNM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 13.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CNM may justify a higher PE ratio.
CNM's earnings are expected to grow with 12.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.4
PEG (5Y)0.36
EPS Next 2Y11.02%
EPS Next 3Y12.01%
5. Dividend
5.1 Amount
No dividends for CNM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.02
+0.34 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change0.3%
Ins Owners0.35%
Ins Owner Change-0.3%
Market Cap10.49B
Analysts77.65
Price Target60.99 (15.03%)
Short Float %7.79%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.61%
Min EPS beat(2)0.71%
Max EPS beat(2)12.5%
EPS beat(4)3
Avg EPS beat(4)0.88%
Min EPS beat(4)-10.01%
Max EPS beat(4)12.5%
EPS beat(8)7
Avg EPS beat(8)4.03%
EPS beat(12)11
Avg EPS beat(12)8.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.41%
Max Revenue beat(2)1.49%
Revenue beat(4)3
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.49%
Max Revenue beat(4)1.49%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)6
Avg Revenue beat(12)1.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.2%
PT rev (3m)0.02%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)-1.79%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 21.59 | ||
| P/S | 1.41 | ||
| P/FCF | 17.9 | ||
| P/OCF | 16.9 | ||
| P/B | 6.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.89 |
EPS(TTM)2.3
EY4.34%
EPS(NY)2.46
Fwd EY4.63%
FCF(TTM)2.96
FCFY5.59%
OCF(TTM)3.14
OCFY5.92%
SpS37.6
BVpS8.58
TBVpS-5.74
PEG (NY)3.4
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 24.2% | ||
| ROCE | 14.37% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 25.89% | ||
| OM | 9.66% | ||
| PM (TTM) | 5.52% | ||
| GM | 26.61% | ||
| FCFM | 7.88% |
ROA(3y)7.26%
ROA(5y)5.33%
ROE(3y)23.57%
ROE(5y)17.76%
ROIC(3y)13.05%
ROIC(5y)10.52%
ROICexc(3y)13.27%
ROICexc(5y)10.76%
ROICexgc(3y)30.58%
ROICexgc(5y)28.28%
ROCE(3y)16.76%
ROCE(5y)13.51%
ROICexcg growth 3Y-1.87%
ROICexcg growth 5Y6.48%
ROICexc growth 3Y6.77%
ROICexc growth 5Y19.1%
OM growth 3Y4.39%
OM growth 5Y16.07%
PM growth 3Y18.52%
PM growth 5Y35.35%
GM growth 3Y1.32%
GM growth 5Y2.7%
F-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 18.04% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 68.02% | ||
| Profit Quality | 142.58% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.52 |
F-Score4
WACC10.02%
ROIC/WACC1.12
Cap/Depr(3y)20.09%
Cap/Depr(5y)16.28%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.43%
Profit Quality(3y)174.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.95%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%-2.63%
EPS Next Y6.77%
EPS Next 2Y11.02%
EPS Next 3Y12.01%
EPS Next 5YN/A
Revenue 1Y (TTM)11.03%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%17.92%
Revenue Next Year4.37%
Revenue Next 2Y4.37%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
EBIT growth 1Y-3.49%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year34.85%
EBIT Next 3Y16.99%
EBIT Next 5YN/A
FCF growth 1Y-43.11%
FCF growth 3YN/A
FCF growth 5Y24.92%
OCF growth 1Y-41.91%
OCF growth 3YN/A
OCF growth 5Y24.63%