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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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
With a Return On Assets value of 2.59%, CNXC perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
CNXC has a Return On Equity of 7.65%. This is comparable to the rest of the industry: CNXC outperforms 57.32% of its industry peers.
CNXC has a better Return On Invested Capital (7.48%) than 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNXC is significantly below the industry average of 22.63%.
The 3 year average ROIC (7.17%) for CNXC is below the current ROIC(7.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 7.65% | ||
| ROIC | 7.48% |
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 2.57%. This is comparable to the rest of the industry: CNXC outperforms 52.44% of its industry peers.
CNXC's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 7.84%, CNXC is doing good in the industry, outperforming 62.20% of the companies in the same industry.
CNXC's Operating Margin has been stable in the last couple of years.
The Gross Margin of CNXC (35.90%) is comparable to the rest of the industry.
CNXC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | 2.57% | ||
| GM | 35.9% |
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
CNXC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CNXC has less shares outstanding
Compared to 5 years ago, CNXC has more shares outstanding
The debt/assets ratio for CNXC has remained at the same level compared to a year ago.
2.2 Solvency
CNXC has an Altman-Z score of 1.80. 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 1.80 is on the low side compared to the rest of the industry. CNXC is outperformed by 60.98% of its industry peers.
CNXC has a debt to FCF ratio of 10.16. This is a negative value and a sign of low solvency as CNXC would need 10.16 years to pay back of all of its debts.
CNXC's Debt to FCF ratio of 10.16 is on the low side compared to the rest of the industry. CNXC is outperformed by 60.98% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that CNXC has dependencies on debt financing.
CNXC has a Debt to Equity ratio of 1.22. This is in the lower half of the industry: CNXC underperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.16 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.82
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.65 indicates that CNXC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.65, CNXC perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that CNXC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.65, CNXC perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.47% 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.
The Revenue has grown by 52.15% in the past year. This is a very strong growth!
The Revenue has been growing by 15.36% on average over the past years. This is quite good.
EPS 1Y (TTM)2.47%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%8.56%
Revenue 1Y (TTM)52.15%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%-1.27%
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 7.01% on average per year.
CNXC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.72% yearly.
EPS Next Y4.05%
EPS Next 2Y6.87%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue Next Year0.05%
Revenue Next 2Y1.43%
Revenue Next 3Y2.72%
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.
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
With a Price/Earnings ratio of 4.79, the valuation of CNXC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 95.12% of the companies listed in the same industry.
CNXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 4.27, which indicates a rather cheap valuation of CNXC.
Based on the Price/Forward Earnings ratio, CNXC is valued cheaper than 97.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.79 | ||
| Fwd PE | 4.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 93.90% of the companies listed in the same industry.
95.12% 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 | 7.36 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
CNXC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CNXC may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)0.46
EPS Next 2Y6.87%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, CNXC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.35, CNXC pays a better dividend. On top of this CNXC pays more dividend than 95.12% of the companies listed in the same industry.
CNXC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
27.74% of the earnings are spent on dividend by CNXC. This is a low number and sustainable payout ratio.
DP27.74%
EPS Next 2Y6.87%
EPS Next 3Y7.01%
55.59
-0.55 (-0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change5.63%
Ins Owners2.95%
Ins Owner Change0.75%
Market Cap3.55B
Analysts81.67
Price Target65.62 (18.04%)
Short Float %11.38%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.29
Dividend Growth(5Y)N/A
DP27.74%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.08%
Min EPS beat(2)5.92%
Max EPS beat(2)6.25%
EPS beat(4)3
Avg EPS beat(4)2.19%
Min EPS beat(4)-3.89%
Max EPS beat(4)6.25%
EPS beat(8)4
Avg EPS beat(8)0.33%
EPS beat(12)5
Avg EPS beat(12)-1.06%
EPS beat(16)9
Avg EPS beat(16)0.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.75%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.79%
Revenue beat(12)0
Avg Revenue beat(12)-2.09%
Revenue beat(16)0
Avg Revenue beat(16)-1.91%
PT rev (1m)0%
PT rev (3m)-3.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0.8%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.79 | ||
| Fwd PE | 4.27 | ||
| P/S | 0.3 | ||
| P/FCF | 7.36 | ||
| P/OCF | 4.96 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.02 |
EPS(TTM)11.61
EY20.89%
EPS(NY)13.01
Fwd EY23.4%
FCF(TTM)7.55
FCFY13.59%
OCF(TTM)11.2
OCFY20.16%
SpS187.71
BVpS63.15
TBVpS-47.95
PEG (NY)1.18
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 7.65% | ||
| ROCE | 9.3% | ||
| ROIC | 7.48% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 28.02% | ||
| OM | 7.84% | ||
| PM (TTM) | 2.57% | ||
| GM | 35.9% | ||
| FCFM | 4.02% |
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-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.16 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 34.19% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.11% | ||
| Profit Quality | 156.36% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.8 |
F-Score7
WACC9.09%
ROIC/WACC0.82
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)2.47%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%8.56%
EPS Next Y4.05%
EPS Next 2Y6.87%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue 1Y (TTM)52.15%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%-1.27%
Revenue Next Year0.05%
Revenue Next 2Y1.43%
Revenue Next 3Y2.72%
Revenue Next 5YN/A
EBIT growth 1Y25.39%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year28.12%
EBIT Next 3Y12.07%
EBIT Next 5YN/A
FCF growth 1Y-8.17%
FCF growth 3Y5.5%
FCF growth 5Y4.83%
OCF growth 1Y8.52%
OCF growth 3Y9.09%
OCF growth 5Y8.22%