CONCENTRIX CORP (CNXC)
US20602D1019 - Common Stock
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. CNXC was compared to 86 industry peers in the IT Services industry. CNXC has a medium profitability rating, but doesn't score so well on its financial health evaluation. An interesting combination arises when we look at growth and value: CNXC is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year CNXC was profitable.
CNXC had a positive operating cash flow in the past year.
In the past 5 years CNXC has always 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 of 2.22%. This is comparable to the rest of the industry: CNXC outperforms 58.33% of its industry peers.
Looking at the Return On Equity, with a value of 6.62%, CNXC is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
The Return On Invested Capital of CNXC (5.34%) is better than 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNXC is below the industry average of 12.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.62% | ||
| ROIC | 5.34% |
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
The Profit Margin of CNXC (3.45%) is better than 61.90% of its industry peers.
In the last couple of years the Profit Margin of CNXC has grown nicely.
With a decent Operating Margin value of 9.51%, CNXC is doing good in the industry, outperforming 69.05% of the companies in the same industry.
In the last couple of years the Operating Margin of CNXC has grown nicely.
With a Gross Margin value of 36.20%, CNXC perfoms like the industry average, outperforming 57.14% 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 | 9.51% | ||
| PM (TTM) | 3.45% | ||
| GM | 36.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXC is destroying value.
CNXC has more shares outstanding than it did 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
CNXC has an Altman-Z score of 1.33. 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 1.33 is on the low side compared to the rest of the industry. CNXC is outperformed by 63.10% of its industry peers.
CNXC has a debt to FCF ratio of 15.25. This is a negative value and a sign of low solvency as CNXC would need 15.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.25, CNXC is doing worse than 60.71% of the companies in the same industry.
CNXC has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.23, CNXC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 15.25 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.58
WACC9.16%
2.3 Liquidity
CNXC has a Current Ratio of 1.56. 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 Current ratio (1.56) which is comparable to the rest of the industry.
A Quick Ratio of 1.56 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC has a Quick ratio (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for CNXC have decreased by -1.05% in the last year.
Measured over the past years, CNXC shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.40% on average per year.
CNXC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.67%.
CNXC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.63% yearly.
EPS 1Y (TTM)-1.05%
EPS 3Y21.35%
EPS 5Y43.4%
EPS growth Q2Q0.39%
Revenue 1Y (TTM)22.67%
Revenue growth 3Y14.66%
Revenue growth 5Y23.63%
Revenue growth Q2Q46.83%
3.2 Future
The Earnings Per Share is expected to grow by 8.89% on average over the next years. This is quite good.
CNXC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.49% yearly.
EPS Next Y7.62%
EPS Next 2Y8.27%
EPS Next 3Y8.89%
EPS Next 5YN/A
Revenue Next Year35.49%
Revenue Next 2Y18.41%
Revenue Next 3Y13.49%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.88, the valuation of CNXC can be described as very cheap.
Based on the Price/Earnings ratio, CNXC is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
CNXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
The Price/Forward Earnings ratio is 4.17, which indicates a rather cheap valuation of CNXC.
Based on the Price/Forward Earnings ratio, CNXC is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNXC to the average of the S&P500 Index (20.92), we can say CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.88 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNXC is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.05 | ||
| EV/EBITDA | 6.76 |
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.
CNXC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.11
EPS Next 2Y8.27%
EPS Next 3Y8.89%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.03%.
The stock price of CNXC dropped by -36.78% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.81, CNXC pays a better dividend. On top of this CNXC pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CNXC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
CNXC has been paying a dividend for over 5 years, so it has already some track record.
CNXC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CNXC pays out 25.70% of its income as dividend. This is a sustainable payout ratio.
DP25.7%
EPS Next 2Y8.27%
EPS Next 3Y8.89%
CONCENTRIX CORP
NASDAQ:CNXC (5/1/2024, 7:00:01 PM)
After market: 55.3 0 (0%)55.3
+0.63 (+1.15%)
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 Cap3.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.88 | ||
| Fwd PE | 4.17 | ||
| 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)0.64
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 6.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.51% | ||
| PM (TTM) | 3.45% | ||
| GM | 36.2% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| 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)
Growth
EPS 1Y (TTM)-1.05%
EPS 3Y21.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.67%
Revenue growth 3Y14.66%
Revenue growth 5Y
Revenue growth 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