CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
NASDAQ:CNXC - Nasdaq - US20602D1019 - Common Stock - Currency: USD
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. CNXC was compared to 82 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
CNXC had positive earnings in the past year.
In the past year CNXC had a positive cash flow from operations.
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
CNXC has a Return On Assets (1.89%) which is comparable to the rest of the industry.
CNXC has a Return On Equity of 5.47%. This is comparable to the rest of the industry: CNXC outperforms 57.32% of its industry peers.
CNXC has a Return On Invested Capital (5.75%) which is comparable to the rest of the 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 21.60%.
| 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
With a Profit Margin value of 2.43%, CNXC perfoms like the industry average, outperforming 50.00% 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 60.98% of its industry peers.
In the last couple of years the Operating Margin of CNXC has remained more or less at the same level.
CNXC has a Gross Margin (35.73%) which 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.
CNXC has less shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.50, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
CNXC has a Altman-Z score of 1.50. This is in the lower half of the industry: CNXC underperforms 68.29% 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.
CNXC has a Debt to FCF ratio (10.09) which is comparable to the rest of the industry.
CNXC has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.14, CNXC is doing worse than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.64
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.61 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC has a Current ratio of 1.61. This is comparable to the rest of the industry: CNXC outperforms 50.00% 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.
With a Quick ratio value of 1.61, CNXC perfoms like the industry average, outperforming 51.22% of the companies in the same 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%.
CNXC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
The Revenue for CNXC has decreased by -12.89% in the past year. This is quite bad
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 5.12% on average per year.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y5.32%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year1.68%
Revenue Next 2Y2.26%
Revenue Next 3Y2.6%
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
CNXC is valuated cheaply with a Price/Earnings ratio of 4.86.
96.34% of the companies in the same industry are more expensive than CNXC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CNXC to the average of the S&P500 Index (27.52), we can say CNXC is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.47, the valuation of CNXC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 96.34% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CNXC to the average of the S&P500 Index (35.58), we can say CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.86 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
CNXC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXC is cheaper than 92.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNXC is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 5.72 |
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)1.15
PEG (5Y)0.47
EPS Next 2Y5.32%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 2.45, CNXC pays a better dividend. On top of this CNXC pays more dividend than 91.46% of the companies listed in the same industry.
CNXC's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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 2Y5.32%
EPS Next 3Y5.12%
56.45
-2.17 (-3.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.2%
Inst Owner Change-0.01%
Ins Owners2.96%
Ins Owner Change0.75%
Market Cap3.56B
Analysts81.67
Price Target68.34 (21.06%)
Short Float %11.39%
Short Ratio9.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)4.15%
PT rev (3m)4.15%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)2.66%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.86 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.37 | ||
| P/FCF | 7.34 | ||
| P/OCF | 4.98 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.72 |
EPS(TTM)11.62
EY20.58%
EPS(NY)12.63
Fwd EY22.38%
FCF(TTM)7.69
FCFY13.63%
OCF(TTM)11.33
OCFY20.07%
SpS152.71
BVpS67.88
TBVpS-47.74
PEG (NY)1.15
PEG (5Y)0.47
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 | 1.5 |
F-Score6
WACC8.93%
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 Y4.22%
EPS Next 2Y5.32%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%1.54%
Revenue Next Year1.68%
Revenue Next 2Y2.26%
Revenue Next 3Y2.6%
Revenue Next 5YN/A
EBIT growth 1Y-20.64%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year28.77%
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%