CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
NYSE:CNM - US21874C1027 - Common Stock
65.75 USD
+0.8 (+1.23%)
65.75 USD
0 (0%)
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. CNM scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, CNM is valued expensive at the moment.
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
Looking at the Return On Assets, with a value of 6.63%, CNM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CNM's Return On Equity of 23.85% is amongst the best of the industry. CNM outperforms 83.33% of its industry peers.
CNM's Return On Invested Capital of 11.18% is fine compared to the rest of the industry. CNM outperforms 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNM is above the industry average of 9.70%.
| 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 66.67% of the companies in the same industry.
CNM's Profit Margin has improved in the last couple of years.
CNM has a better Operating Margin (9.49%) than 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 26.57% is in line compared to the rest of the industry. CNM outperforms 41.67% of its industry peers.
In the last couple of years the Gross Margin of CNM has grown nicely.
| 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.
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.
The debt/assets ratio for CNM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that CNM is not in any danger for bankruptcy at the moment.
CNM has a Altman-Z score (3.63) which is comparable to the rest of the industry.
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.
CNM's Debt to FCF ratio of 3.91 is fine compared to the rest of the industry. CNM outperforms 66.67% 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.
CNM's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. CNM is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.13
WACC9.93%
2.3 Liquidity
A Current Ratio of 1.96 indicates that CNM should not have too much problems paying its short term obligations.
CNM has a Current ratio of 1.96. This is comparable to the rest of the industry: CNM outperforms 52.08% of its industry peers.
CNM has a Quick Ratio of 1.10. 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 of 1.10. This is in the lower half of the industry: CNM underperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CNM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.68%.
The Earnings Per Share has been growing by 64.38% on average over the past years. This is a very strong growth
CNM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.80%.
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 12.51% yearly.
Based on estimates for the next years, CNM will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y9.09%
EPS Next 2Y11.84%
EPS Next 3Y12.51%
EPS Next 5YN/A
Revenue Next Year4.65%
Revenue Next 2Y5.05%
Revenue Next 3Y4.66%
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
CNM is valuated quite expensively with a Price/Earnings ratio of 28.10.
The rest of the industry has a similar Price/Earnings ratio as CNM.
The average S&P500 Price/Earnings ratio is at 27.14. CNM is around the same levels.
CNM is valuated rather expensively with a Price/Forward Earnings ratio of 22.85.
The rest of the industry has a similar Price/Forward Earnings ratio as CNM.
CNM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.1 | ||
| Fwd PE | 22.85 |
4.2 Price Multiples
CNM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CNM is valued a bit cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| EV/EBITDA | 16.4 |
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 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.09
PEG (5Y)0.44
EPS Next 2Y11.84%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
65.75
+0.8 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners112.46%
Inst Owner Change-1.5%
Ins Owners0.56%
Ins Owner Change7.13%
Market Cap12.96B
Analysts76.67
Price Target66.96 (1.84%)
Short Float %6.54%
Short Ratio5.97
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)2.22%
PT rev (3m)9.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.1 | ||
| Fwd PE | 22.85 | ||
| P/S | 1.7 | ||
| P/FCF | 22.39 | ||
| P/OCF | 20.91 | ||
| P/B | 7.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.4 |
EPS(TTM)2.34
EY3.56%
EPS(NY)2.88
Fwd EY4.38%
FCF(TTM)2.94
FCFY4.47%
OCF(TTM)3.15
OCFY4.78%
SpS38.61
BVpS8.85
TBVpS-5.36
PEG (NY)3.09
PEG (5Y)0.44
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 | 3.63 |
F-Score6
WACC9.93%
ROIC/WACC1.13
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 Y9.09%
EPS Next 2Y11.84%
EPS Next 3Y12.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.8%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%9.76%
Revenue Next Year4.65%
Revenue Next 2Y5.05%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year34.31%
EBIT Next 3Y16.22%
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%