CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
NYSE:CNM - New York Stock Exchange, Inc. - US21874C1027 - Common Stock - Currency: USD
CNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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. CNM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNM was profitable.
CNM had a positive operating cash flow in the past year.
Each year in the past 5 years CNM has been profitable.
CNM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CNM's Return On Assets of 6.63% is fine compared to the rest of the industry. CNM outperforms 72.92% of its industry peers.
The Return On Equity of CNM (23.85%) is better than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.18%, CNM is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNM is above the industry average of 9.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 23.85% | ||
| ROIC | 11.18% |
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
With a decent Profit Margin value of 5.47%, CNM is doing good in the industry, outperforming 72.92% of the companies in the same industry.
CNM's Profit Margin has improved in the last couple of years.
CNM has a Operating Margin of 9.49%. This is in the better half of the industry: CNM outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of CNM has grown nicely.
With a Gross Margin value of 26.57%, CNM is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
CNM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.57% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNM is still creating some value.
CNM has less shares outstanding than it did 1 year ago.
CNM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that CNM is not in any danger for bankruptcy at the moment.
CNM has a Altman-Z score of 3.60. This is comparable to the rest of the industry: CNM outperforms 58.33% of its industry peers.
CNM has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as CNM would need 3.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, CNM is in line with its industry, outperforming 56.25% of the companies in the same industry.
CNM has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.28, CNM is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.12
WACC9.98%
2.3 Liquidity
A Current Ratio of 1.96 indicates that CNM should not have too much problems paying its short term obligations.
CNM's Current ratio of 1.96 is in line compared to the rest of the industry. CNM outperforms 52.08% of its industry peers.
A Quick Ratio of 1.10 indicates that CNM should not have too much problems paying its short term obligations.
CNM's Quick ratio of 1.10 is in line compared to the rest of the industry. CNM outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for CNM have decreased by -1.68% in the last year.
Measured over the past years, CNM shows a very strong growth in Earnings Per Share. The EPS has been growing by 64.38% on average per year.
The Revenue has grown by 10.80% 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)-1.68%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%7.69%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%9.76%
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 11.74% yearly.
Based on estimates for the next years, CNM will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y9.49%
EPS Next 2Y12.03%
EPS Next 3Y11.74%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y4.68%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.27, which means the current valuation is very expensive for CNM.
60.42% of the companies in the same industry are cheaper than CNM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CNM to the average of the S&P500 Index (27.24), we can say CNM is valued inline with the index average.
The Price/Forward Earnings ratio is 22.11, which indicates a rather expensive current valuation of CNM.
Based on the Price/Forward Earnings ratio, CNM is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, CNM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNM indicates a slightly more expensive valuation: CNM is more expensive than 60.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNM is valued a bit cheaper than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 16.16 |
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.
PEG (NY)2.87
PEG (5Y)0.42
EPS Next 2Y12.03%
EPS Next 3Y11.74%
5. Dividend
5.1 Amount
No dividends for CNM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.82
+1.14 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners111.77%
Inst Owner Change0.11%
Ins Owners0.55%
Ins Owner Change7.13%
Market Cap12.58B
Analysts77.78
Price Target65.51 (2.65%)
Short Float %6.78%
Short Ratio5.8
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)3.09%
Min EPS beat(2)0.71%
Max EPS beat(2)5.47%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-10.01%
Max EPS beat(4)12.5%
EPS beat(8)7
Avg EPS beat(8)3.64%
EPS beat(12)11
Avg EPS beat(12)8.79%
EPS beat(16)15
Avg EPS beat(16)24.24%
Revenue beat(2)2
Avg Revenue beat(2)1.55%
Min Revenue beat(2)0.41%
Max Revenue beat(2)2.69%
Revenue beat(4)3
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-5.49%
Max Revenue beat(4)2.69%
Revenue beat(8)4
Avg Revenue beat(8)-0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)2.75%
PT rev (1m)1.84%
PT rev (3m)7.41%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)1.41%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.11 | ||
| P/S | 1.65 | ||
| P/FCF | 21.73 | ||
| P/OCF | 20.29 | ||
| P/B | 7.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.16 |
EPS(TTM)2.34
EY3.67%
EPS(NY)2.89
Fwd EY4.52%
FCF(TTM)2.94
FCFY4.6%
OCF(TTM)3.15
OCFY4.93%
SpS38.61
BVpS8.85
TBVpS-5.36
PEG (NY)2.87
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 23.85% | ||
| ROCE | 14.35% | ||
| ROIC | 11.18% | ||
| ROICexc | 11.19% | ||
| ROICexgc | 25.29% | ||
| OM | 9.49% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.57% | ||
| FCFM | 7.61% |
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-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 20.92% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 67.54% | ||
| Profit Quality | 139.18% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.6 |
F-Score6
WACC9.98%
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)-1.68%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%7.69%
EPS Next Y9.49%
EPS Next 2Y12.03%
EPS Next 3Y11.74%
EPS Next 5YN/A
Revenue 1Y (TTM)10.8%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%9.76%
Revenue Next Year4.29%
Revenue Next 2Y4.68%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year33.49%
EBIT Next 3Y16.16%
EBIT Next 5YN/A
FCF growth 1Y9.45%
FCF growth 3YN/A
FCF growth 5Y24.92%
OCF growth 1Y11.11%
OCF growth 3YN/A
OCF growth 5Y24.63%