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 48 industry peers in the Trading Companies & Distributors industry. CNM scores excellent on profitability, but 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.
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 68.75% of its industry peers.
CNM has a Return On Equity of 24.20%. This is amongst the best in the industry. CNM outperforms 81.25% of its industry peers.
With a decent Return On Invested Capital value of 11.19%, CNM is doing good in 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 9.16%.
| 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 66.67% of its industry peers.
In the last couple of years the Profit Margin of CNM has grown nicely.
CNM has a Operating Margin of 9.66%. This is in the better half 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.
CNM's Gross Margin of 26.61% is on the low side compared to the rest of the industry. CNM is outperformed by 62.50% of its industry peers.
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.
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 3.52 indicates that CNM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, CNM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of CNM is 3.86, which is a good value as it means it would take CNM, 3.86 years of fcf income to pay off all of its debts.
CNM has a Debt to FCF ratio of 3.86. This is comparable to the rest of the industry: CNM outperforms 58.33% of its industry peers.
CNM has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.32, CNM is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.09
WACC10.3%
2.3 Liquidity
A Current Ratio of 2.34 indicates that CNM has no problem at all paying its short term obligations.
CNM has a better Current ratio (2.34) than 64.58% of its industry peers.
A Quick Ratio of 1.29 indicates that CNM should not have too much problems paying its short term obligations.
CNM has a Quick ratio of 1.29. This is comparable to the rest of the industry: CNM outperforms 50.00% of its industry peers.
| 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.
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.
CNM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
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
Based on estimates for the next years, CNM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.47% on average per year.
Based on estimates for the next years, CNM will show a small growth in Revenue. The Revenue will grow by 4.51% on average per year.
EPS Next Y7.04%
EPS Next 2Y10.71%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year3.79%
Revenue Next 2Y4.1%
Revenue Next 3Y4.51%
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
A Price/Earnings ratio of 23.07 indicates a rather expensive valuation of CNM.
The rest of the industry has a similar Price/Earnings ratio as CNM.
CNM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.55 indicates a rather expensive valuation of CNM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNM indicates a slightly more expensive valuation: CNM is more expensive than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.77. CNM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 21.55 |
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 62.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 13.92 |
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.
A more expensive valuation may be justified as CNM's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)3.28
PEG (5Y)0.36
EPS Next 2Y10.71%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
No dividends for CNM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.06
-0.17 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change4.76%
Ins Owners0.35%
Ins Owner Change-0.3%
Market Cap10.46B
Analysts77.78
Price Target60.99 (14.95%)
Short Float %7.77%
Short Ratio6.88
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)0.02%
PT rev (3m)-2.2%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 21.55 | ||
| P/S | 1.41 | ||
| P/FCF | 17.85 | ||
| P/OCF | 16.84 | ||
| P/B | 6.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)2.3
EY4.33%
EPS(NY)2.46
Fwd EY4.64%
FCF(TTM)2.97
FCFY5.6%
OCF(TTM)3.15
OCFY5.94%
SpS37.75
BVpS8.61
TBVpS-5.76
PEG (NY)3.28
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
WACC10.3%
ROIC/WACC1.09
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 Y7.04%
EPS Next 2Y10.71%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue 1Y (TTM)11.03%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%17.92%
Revenue Next Year3.79%
Revenue Next 2Y4.1%
Revenue Next 3Y4.51%
Revenue Next 5YN/A
EBIT growth 1Y-3.49%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year33.49%
EBIT Next 3Y15.45%
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%