CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
NASDAQ:CNXC - US20602D1019 - Common Stock
50.5 USD
+0.47 (+0.94%)
We assign a fundamental rating of 5 out of 10 to CNXC. CNXC was compared to 83 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
CNXC had positive earnings in the past year.
CNXC had a positive operating cash flow in the past year.
Each year in the past 5 years CNXC has been profitable.
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 better Return On Equity (5.47%) than 61.45% of its industry peers.
CNXC has a Return On Invested Capital (5.75%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CNXC is significantly below the industry average of 22.12%.
| 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
The Profit Margin of CNXC (2.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNXC has remained more or less at the same level.
CNXC has a Operating Margin of 7.75%. This is in the better half of the industry: CNXC outperforms 62.65% of its industry peers.
CNXC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 35.73%, CNXC perfoms like the industry average, outperforming 51.81% 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 | 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.
The number of shares outstanding for CNXC has been reduced compared to 1 year ago.
Compared to 5 years ago, CNXC has more shares outstanding
Compared to 1 year ago, CNXC has about the same debt to assets ratio.
2.2 Solvency
CNXC has an Altman-Z score of 1.47. This is a bad value and indicates that CNXC is not financially healthy and even has some risk of bankruptcy.
CNXC's Altman-Z score of 1.47 is on the low side compared to the rest of the industry. CNXC is outperformed by 67.47% of its industry peers.
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 48.19% 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.
The Debt to Equity ratio of CNXC (1.14) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.63
WACC9.07%
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.
With a Current ratio value of 1.61, CNXC perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
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 in line with its industry peers.
| 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 2.56% over the past year.
The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
Looking at the last year, CNXC shows a very negative growth in Revenue. The Revenue has decreased by -12.89% in the last year.
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
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 2.73% on average per year.
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
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 4.35.
Based on the Price/Earnings ratio, CNXC is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CNXC is valued rather cheaply.
The Price/Forward Earnings ratio is 3.96, which indicates a rather cheap valuation of CNXC.
97.59% of the companies in the same industry are more expensive than CNXC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.67. CNXC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.35 | ||
| Fwd PE | 3.96 |
4.2 Price Multiples
91.57% of the companies in the same industry are more expensive than CNXC, based on the Enterprise Value to EBITDA ratio.
CNXC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNXC is cheaper than 95.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.56 | ||
| EV/EBITDA | 5.44 |
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)0.93
PEG (5Y)0.42
EPS Next 2Y5.78%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, 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 2.44. CNXC pays more dividend than 93.98% of the companies in the same industry.
CNXC's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 (8/27/2025, 10:23:34 AM)
50.5
+0.47 (+0.94%)
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 Cap3.18B
Analysts81.67
Price Target69.02 (36.67%)
Short Float %13.28%
Short Ratio9.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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%
EPS NQ rev (3m)-1.87%
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)-0.05%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.35 | ||
| Fwd PE | 3.96 | ||
| P/S | 0.33 | ||
| P/FCF | 6.56 | ||
| P/OCF | 4.46 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.44 |
EPS(TTM)11.62
EY23.01%
EPS(NY)12.74
Fwd EY25.24%
FCF(TTM)7.69
FCFY15.24%
OCF(TTM)11.33
OCFY22.43%
SpS152.71
BVpS67.88
TBVpS-47.74
PEG (NY)0.93
PEG (5Y)0.42
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 | 1.47 |
F-Score6
WACC9.07%
ROIC/WACC0.63
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%