CONCENTRIX CORP (CNXC)
US20602D1019 - Common Stock
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. CNXC was compared to 83 industry peers in the IT Services industry. While CNXC is still in line with the averages on profitability rating, there are concerns on its financial health. CNXC is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year CNXC was profitable.
In the past year CNXC had a positive cash flow from operations.
CNXC had positive earnings in each of the past 5 years.
CNXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNXC has a Return On Assets (2.04%) which is in line with its industry peers.
CNXC has a Return On Equity of 5.96%. This is in the better half of the industry: CNXC outperforms 62.96% of its industry peers.
CNXC has a better Return On Invested Capital (6.79%) than 65.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNXC is in line with the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.96% | ||
| ROIC | 6.79% |
ROA(3y)5.6%
ROA(5y)4.5%
ROE(3y)12.86%
ROE(5y)10.74%
ROIC(3y)8.17%
ROIC(5y)7.49%
1.3 Margins
CNXC has a Profit Margin of 2.10%. This is comparable to the rest of the industry: CNXC outperforms 55.56% of its industry peers.
In the last couple of years the Profit Margin of CNXC has grown nicely.
CNXC has a better Operating Margin (8.03%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CNXC has grown nicely.
With a Gross Margin value of 36.07%, CNXC perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
In the last couple of years the Gross Margin of CNXC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.03% | ||
| PM (TTM) | 2.1% | ||
| GM | 36.07% |
OM growth 3Y13%
OM growth 5Y6.83%
PM growth 3Y7.41%
PM growth 5Y17.15%
GM growth 3Y0.96%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
CNXC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CNXC has been increased compared to 1 year ago.
The number of shares outstanding for CNXC has been increased compared to 5 years ago.
The debt/assets ratio for CNXC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CNXC (1.67) is worse than 62.96% of its industry peers.
The Debt to FCF ratio of CNXC is 13.32, which is on the high side as it means it would take CNXC, 13.32 years of fcf income to pay off all of its debts.
CNXC has a Debt to FCF ratio (13.32) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that CNXC has dependencies on debt financing.
CNXC has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: CNXC underperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 13.32 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.79
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.57 indicates that CNXC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, CNXC is in line with its industry, outperforming 49.38% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC has a Quick ratio (1.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.74% over the past year.
CNXC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.40% yearly.
The Revenue has grown by 80.92% in the past year. This is a very strong growth!
CNXC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.63% yearly.
EPS 1Y (TTM)4.74%
EPS 3Y21.35%
EPS 5Y43.4%
EPS Q2Q%5.9%
Revenue 1Y (TTM)80.92%
Revenue growth 3Y14.66%
Revenue growth 5Y23.63%
Sales Q2Q%46.21%
3.2 Future
The Earnings Per Share is expected to grow by 7.01% on average over the next years.
The Revenue is expected to grow by 12.77% on average over the next years. This is quite good.
EPS Next Y0.77%
EPS Next 2Y5.3%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue Next Year35.65%
Revenue Next 2Y17.78%
Revenue Next 3Y12.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
CNXC is valuated cheaply with a Price/Earnings ratio of 3.77.
Based on the Price/Earnings ratio, CNXC is valued cheaper than 98.77% of the companies in the same industry.
CNXC is valuated cheaply when we compare the Price/Earnings ratio to 29.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.45, which indicates a rather cheap valuation of CNXC.
CNXC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXC is cheaper than 100.00% of the companies in the same industry.
CNXC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 3.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaper than 90.12% of the companies in the same industry.
95.06% of the companies in the same industry are more expensive than CNXC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.61 | ||
| EV/EBITDA | 4.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNXC does not grow enough to justify the current Price/Earnings ratio.
CNXC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.91
PEG (5Y)0.09
EPS Next 2Y5.3%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, CNXC has a reasonable but not impressive dividend return.
In the last 3 months the price of CNXC has falen by -40.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNXC's Dividend Yield is rather good when compared to the industry average which is at 2.72. CNXC pays more dividend than 95.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, CNXC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
CNXC has been paying a dividend for over 5 years, so it has already some track record.
CNXC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CNXC pays out 32.91% of its income as dividend. This is a sustainable payout ratio.
DP32.91%
EPS Next 2Y5.3%
EPS Next 3Y7.01%
CONCENTRIX CORP
NASDAQ:CNXC (12/6/2024, 8:00:00 PM)
After market: 43.28 0 (0%)43.28
-0.93 (-2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.81B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 3.45 | ||
| 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)4.91
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.03% | ||
| PM (TTM) | 2.1% | ||
| GM | 36.07% | ||
| 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)4.74%
EPS 3Y21.35%
EPS 5Y
EPS Q2Q%
EPS Next Y0.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)80.92%
Revenue growth 3Y14.66%
Revenue growth 5Y
Sales 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