CORE & MAIN INC-CLASS A (CNM)
US21874C1027 - Common Stock
We assign a fundamental rating of 5 out of 10 to CNM. CNM was compared to 51 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.
CNM had positive earnings in each of the past 5 years.
Of the past 5 years CNM 4 years had a positive operating cash flow.
1.2 Ratios
CNM has a Return On Assets of 7.32%. This is in the better half of the industry: CNM outperforms 70.59% of its industry peers.
CNM has a Return On Equity of 25.57%. This is in the better half of the industry: CNM outperforms 74.51% of its industry peers.
With a decent Return On Invested Capital value of 14.08%, CNM is doing good in the industry, outperforming 78.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNM is in line with the industry average of 11.53%.
The last Return On Invested Capital (14.08%) for CNM is above the 3 year average (12.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 25.57% | ||
| ROIC | 14.08% |
ROA(3y)6.17%
ROA(5y)4.19%
ROE(3y)19.68%
ROE(5y)14.21%
ROIC(3y)12.93%
ROIC(5y)9.55%
1.3 Margins
CNM has a Profit Margin of 5.54%. This is comparable to the rest of the industry: CNM outperforms 54.90% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM has a better Operating Margin (11.10%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CNM has grown nicely.
Looking at the Gross Margin, with a value of 27.13%, CNM is in line with its industry, outperforming 41.18% of the companies in the same industry.
CNM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | 5.54% | ||
| GM | 27.13% |
OM growth 3Y29.72%
OM growth 5Y20.79%
PM growth 3Y65.47%
PM growth 5Y37.09%
GM growth 3Y4%
GM growth 5Y4.17%
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.
Compared to 1 year ago, CNM has less shares outstanding
Compared to 1 year ago, CNM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.09 indicates that CNM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, CNM is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
The Debt to FCF ratio of CNM is 1.82, which is an excellent value as it means it would take CNM, only 1.82 years of fcf income to pay off all of its debts.
CNM has a better Debt to FCF ratio (1.82) than 68.63% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CNM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.28, CNM is doing worse than 62.75% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.54
WACC9.13%
2.3 Liquidity
CNM has a Current Ratio of 2.29. This indicates that CNM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CNM (2.29) is comparable to the rest of the industry.
CNM has a Quick Ratio of 1.30. This is a normal value and indicates that CNM is financially healthy and should not expect problems in meeting its short term obligations.
CNM has a Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.49% over the past year.
Measured over the past years, CNM shows a very strong growth in Earnings Per Share. The EPS has been growing by 60.95% on average per year.
The Revenue has been growing slightly by 0.77% in the past year.
Measured over the past years, CNM shows a quite strong growth in Revenue. The Revenue has been growing by 15.92% on average per year.
EPS 1Y (TTM)14.49%
EPS 3Y108.01%
EPS 5Y60.95%
EPS growth Q2Q8.57%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y22.54%
Revenue growth 5Y15.92%
Revenue growth Q2Q4.8%
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 12.49% yearly.
CNM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y9.19%
EPS Next 2Y10.46%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue Next Year11.04%
Revenue Next 2Y8.08%
Revenue Next 3Y8.19%
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
The Price/Earnings ratio is 25.11, which means the current valuation is very expensive for CNM.
Compared to the rest of the industry, the Price/Earnings ratio of CNM indicates a slightly more expensive valuation: CNM is more expensive than 62.75% of the companies listed in the same industry.
CNM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.31.
The Price/Forward Earnings ratio is 23.00, 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 66.67% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.48. CNM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNM is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNM indicates a somewhat cheap valuation: CNM is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 15.46 |
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 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.73
PEG (5Y)0.41
EPS Next 2Y10.46%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CORE & MAIN INC-CLASS A
NYSE:CNM (5/9/2024, 4:05:00 PM)
After market: 59.51 0 (0%)59.51
-0.11 (-0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.73
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.32% | ||
| ROE | 25.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.1% | ||
| PM (TTM) | 5.54% | ||
| GM | 27.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.49%
EPS 3Y108.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.77%
Revenue growth 3Y22.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y