CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
USA - NASDAQ:CNXC - US20602D1019 - Common Stock
54.32 USD
+0.68 (+1.27%)
We assign a fundamental rating of 5 out of 10 to CNXC. CNXC was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
Each year in the past 5 years CNXC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CNXC (1.89%) is comparable to the rest of the industry.
CNXC has a Return On Equity of 5.47%. This is in the better half of the industry: CNXC outperforms 61.63% 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.
Measured over the past 3 years, the Average Return On Invested Capital for CNXC is significantly below the industry average of 21.79%.
| 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
CNXC has a Profit Margin of 2.43%. This is comparable to the rest of the industry: CNXC outperforms 51.16% of its industry peers.
CNXC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.75%, CNXC is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
In the last couple of years the Operating Margin of CNXC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 35.73%, CNXC is in line with its industry, outperforming 51.16% of the companies in the same industry.
CNXC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXC is destroying value.
The number of shares outstanding for CNXC has been reduced compared to 1 year ago.
The number of shares outstanding for CNXC has been increased compared to 5 years ago.
CNXC has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.48, CNXC is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
CNXC has a debt to FCF ratio of 10.09. This is a negative value and a sign of low solvency as CNXC would need 10.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.09, CNXC perfoms like the industry average, outperforming 48.84% 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.
With a Debt to Equity ratio value of 1.14, CNXC is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.64
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.61 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC's Current ratio of 1.61 is in line compared to the rest of the industry. CNXC outperforms 45.35% of its industry peers.
CNXC has a Quick 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.
CNXC has a Quick ratio (1.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
CNXC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.56%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -12.89%.
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)2.56%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%0.37%
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%1.54%
3.2 Future
The Earnings Per Share is expected to grow by 6.53% on average over the next years.
The Revenue is expected to grow by 2.73% on average over the next years.
EPS Next Y4.66%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
EPS Next 5YN/A
Revenue Next Year1.63%
Revenue Next 2Y2.39%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.67 indicates a rather cheap valuation of CNXC.
CNXC's Price/Earnings ratio is rather cheap when compared to the industry. CNXC is cheaper than 95.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNXC to the average of the S&P500 Index (27.27), we can say CNXC is valued rather cheaply.
The Price/Forward Earnings ratio is 4.26, which indicates a rather cheap valuation of CNXC.
97.67% of the companies in the same industry are more expensive than CNXC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CNXC to the average of the S&P500 Index (22.77), we can say CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 4.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaply inside the industry as 91.86% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 94.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.06 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
CNXC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1
PEG (5Y)0.45
EPS Next 2Y5.78%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.46%, CNXC has a reasonable but not impressive dividend return.
CNXC's Dividend Yield is rather good when compared to the industry average which is at 2.36. CNXC pays more dividend than 93.02% of the companies in the same industry.
CNXC's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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 37.34% of its income as dividend. This is a sustainable payout ratio.
DP37.34%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
NASDAQ:CNXC (9/16/2025, 2:32:58 PM)
54.32
+0.68 (+1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners95.55%
Inst Owner Change0.77%
Ins Owners0.62%
Ins Owner Change-0.05%
Market Cap3.42B
Analysts81.67
Price Target69.02 (27.06%)
Short Float %13.23%
Short Ratio10.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)0%
PT rev (3m)5.18%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 4.26 | ||
| P/S | 0.36 | ||
| P/FCF | 7.06 | ||
| P/OCF | 4.8 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.6 |
EPS(TTM)11.62
EY21.39%
EPS(NY)12.74
Fwd EY23.46%
FCF(TTM)7.69
FCFY14.16%
OCF(TTM)11.33
OCFY20.85%
SpS152.71
BVpS67.88
TBVpS-47.74
PEG (NY)1
PEG (5Y)0.45
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 | 1.48 |
F-Score6
WACC8.92%
ROIC/WACC0.64
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)2.56%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%0.37%
EPS Next Y4.66%
EPS Next 2Y5.78%
EPS Next 3Y6.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%1.54%
Revenue Next Year1.63%
Revenue Next 2Y2.39%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y-20.64%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year27.63%
EBIT Next 3Y12.63%
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%