CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
USA - NASDAQ:CNXC - US20602D1019 - Common Stock
47.54 USD
-0.72 (-1.49%)
47.55 USD
+0.01 (+0.02%)
CNXC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. There are concerns on the financial health of CNXC while its profitability can be described as average. CNXC scores decently on growth, while it is valued quite cheap. This could make 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
Looking at the Return On Assets, with a value of 1.89%, CNXC is in line with its industry, outperforming 51.16% of the companies in the same industry.
CNXC has a Return On Equity of 5.47%. This is in the better half of the industry: CNXC outperforms 60.47% of its industry peers.
With a Return On Invested Capital value of 5.75%, CNXC perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
CNXC had an Average Return On Invested Capital over the past 3 years of 7.17%. This is significantly below the industry average of 21.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 5.47% | ||
| ROIC | 5.75% |
ROA(3y)3.63%
ROA(5y)4.4%
ROE(3y)9.77%
ROE(5y)10.34%
ROIC(3y)7.17%
ROIC(5y)7.81%
1.3 Margins
Looking at the Profit Margin, with a value of 2.43%, CNXC is in line with its industry, outperforming 48.84% of the companies in the same industry.
CNXC's Profit Margin has been stable in the last couple of years.
CNXC has a better Operating Margin (7.75%) than 62.79% of its industry peers.
In the last couple of years the Operating Margin of CNXC has remained more or less at the same level.
The Gross Margin of CNXC (35.73%) is comparable to the rest of the 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 | 7.75% | ||
| PM (TTM) | 2.43% | ||
| GM | 35.73% |
OM growth 3Y-7.9%
OM growth 5Y0.21%
PM growth 3Y-29.45%
PM growth 5Y0.19%
GM growth 3Y0.57%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXC is destroying value.
Compared to 1 year ago, CNXC has less shares outstanding
CNXC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNXC has about the same debt to assets ratio.
2.2 Solvency
CNXC has an Altman-Z score of 1.45. This is a bad value and indicates that CNXC is not financially healthy and even has some risk of bankruptcy.
CNXC has a worse Altman-Z score (1.45) than 69.77% of its industry peers.
The Debt to FCF ratio of CNXC is 10.09, which is on the high side as it means it would take CNXC, 10.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.09, CNXC is in line with its industry, outperforming 50.00% of the companies in the same industry.
CNXC has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
CNXC's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. CNXC is outperformed by 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.7
WACC8.25%
2.3 Liquidity
CNXC has a Current Ratio of 1.61. This is a normal value and indicates that CNXC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CNXC (1.61) is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that CNXC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, CNXC is in line with its industry, outperforming 47.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.35% over the past year.
Measured over the past years, CNXC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.35% on average per year.
CNXC shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.20%.
CNXC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.36% yearly.
EPS 1Y (TTM)0.35%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-3.14%
Revenue 1Y (TTM)35.2%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%4.01%
3.2 Future
Based on estimates for the next years, CNXC will show a small growth in Earnings Per Share. The EPS will grow by 6.53% on average per year.
Based on estimates for the next years, CNXC will show a small growth in Revenue. The Revenue will grow by 2.72% on average per year.
EPS Next Y4.66%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.43%
Revenue Next 3Y2.72%
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.
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
CNXC is valuated cheaply with a Price/Earnings ratio of 4.12.
Based on the Price/Earnings ratio, CNXC is valued cheaply inside the industry as 96.51% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.90. CNXC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.73, which indicates a rather cheap valuation of CNXC.
Based on the Price/Forward Earnings ratio, CNXC is valued cheaper than 98.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.12 | ||
| Fwd PE | 3.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaper than 94.19% of the companies in the same industry.
96.51% 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 | 6.1 | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
CNXC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.88
PEG (5Y)0.4
EPS Next 2Y5.78%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
CNXC's Dividend Yield is rather good when compared to the industry average which is at 2.48. CNXC pays more dividend than 95.35% of the companies in the same industry.
CNXC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
37.34% of the earnings are spent on dividend by CNXC. This is a low number and sustainable payout ratio.
DP37.34%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
47.54
-0.72 (-1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.33%
Inst Owner Change-0.01%
Ins Owners0.62%
Ins Owner Change-0.28%
Market Cap2.96B
Analysts81.82
Price Target66.1 (39.04%)
Short Float %14.41%
Short Ratio9.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend1.29
Dividend Growth(5Y)N/A
DP37.34%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.12%
Min EPS beat(2)-3.67%
Max EPS beat(2)5.92%
EPS beat(4)2
Avg EPS beat(4)1.15%
Min EPS beat(4)-3.89%
Max EPS beat(4)6.25%
EPS beat(8)4
Avg EPS beat(8)0.38%
EPS beat(12)4
Avg EPS beat(12)-1.53%
EPS beat(16)8
Avg EPS beat(16)0.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-1.75%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)0
Avg Revenue beat(12)-1.94%
Revenue beat(16)0
Avg Revenue beat(16)-1.87%
PT rev (1m)-4.24%
PT rev (3m)-3.28%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.12 | ||
| Fwd PE | 3.73 | ||
| P/S | 0.31 | ||
| P/FCF | 6.1 | ||
| P/OCF | 4.14 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.3 |
EPS(TTM)11.53
EY24.25%
EPS(NY)12.74
Fwd EY26.81%
FCF(TTM)7.8
FCFY16.4%
OCF(TTM)11.48
OCFY24.14%
SpS154.72
BVpS68.78
TBVpS-48.37
PEG (NY)0.88
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 5.47% | ||
| ROCE | 7.15% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.95% | ||
| ROICexgc | 21.47% | ||
| OM | 7.75% | ||
| PM (TTM) | 2.43% | ||
| GM | 35.73% | ||
| FCFM | 5.04% |
ROA(3y)3.63%
ROA(5y)4.4%
ROE(3y)9.77%
ROE(5y)10.34%
ROIC(3y)7.17%
ROIC(5y)7.81%
ROICexc(3y)7.36%
ROICexc(5y)8.08%
ROICexgc(3y)28.93%
ROICexgc(5y)27.59%
ROCE(3y)8.91%
ROCE(5y)9.71%
ROICexcg growth 3Y-8.2%
ROICexcg growth 5Y-1.87%
ROICexc growth 3Y-18.71%
ROICexc growth 5Y-3.98%
OM growth 3Y-7.9%
OM growth 5Y0.21%
PM growth 3Y-29.45%
PM growth 5Y0.19%
GM growth 3Y0.57%
GM growth 5Y-0.7%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 34.14% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.41% | ||
| Profit Quality | 207.25% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 1.45 |
F-Score6
WACC8.25%
ROIC/WACC0.7
Cap/Depr(3y)41.85%
Cap/Depr(5y)48.26%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.71%
Profit Quality(3y)148.84%
Profit Quality(5y)148.38%
High Growth Momentum
Growth
EPS 1Y (TTM)0.35%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-3.14%
EPS Next Y4.66%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
EPS Next 5YN/A
Revenue 1Y (TTM)35.2%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%4.01%
Revenue Next Year2.05%
Revenue Next 2Y2.43%
Revenue Next 3Y2.72%
Revenue Next 5YN/A
EBIT growth 1Y-20.64%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year27.63%
EBIT Next 3Y12.37%
EBIT Next 5YN/A
FCF growth 1Y0.01%
FCF growth 3Y5.5%
FCF growth 5Y4.83%
OCF growth 1Y14.14%
OCF growth 3Y9.09%
OCF growth 5Y8.22%