CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
NASDAQ:CNXC - Nasdaq - US20602D1019 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CNXC. CNXC was compared to 82 industry peers in the IT Services industry. While CNXC is still in line with the averages on profitability rating, there are concerns on its financial health. CNXC scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
Each year in the past 5 years CNXC has been profitable.
In the past 5 years CNXC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.89%, CNXC is in line with its industry, outperforming 50.00% of the companies in the same 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.
With a Return On Invested Capital value of 5.75%, CNXC perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNXC is significantly below the industry average of 22.78%.
| 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.
In the last couple of years the Profit Margin of CNXC has remained more or less at the same level.
With a decent Operating Margin value of 7.75%, CNXC is doing good in the industry, outperforming 60.98% of the companies in the same industry.
CNXC's Operating Margin has been stable in the last couple of years.
CNXC's Gross Margin of 35.73% is in line compared to the rest of the industry. CNXC outperforms 52.44% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXC is destroying value.
Compared to 1 year ago, CNXC has less shares outstanding
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 1.45, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
CNXC has a worse Altman-Z score (1.45) than 65.85% 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.
Looking at the Debt to FCF ratio, with a value of 10.09, CNXC is in line with its industry, outperforming 41.46% 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.
CNXC has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: CNXC underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.65
WACC8.86%
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.
CNXC has a Current ratio (1.61) which is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that CNXC should not have too much problems paying 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
CNXC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.56%.
The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
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
CNXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.12% yearly.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y5.32%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year1.67%
Revenue Next 2Y2.43%
Revenue Next 3Y2.81%
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
Based on the Price/Earnings ratio of 4.01, 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 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. CNXC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.69, which indicates a rather cheap valuation of CNXC.
CNXC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXC is cheaper than 96.34% of the companies in the same industry.
CNXC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.01 | ||
| Fwd PE | 3.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaper than 93.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNXC is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 5.26 |
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)0.95
PEG (5Y)0.39
EPS Next 2Y5.32%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, CNXC pays a better dividend. On top of this CNXC pays more dividend than 93.90% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CNXC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 2Y5.32%
EPS Next 3Y5.12%
NASDAQ:CNXC (8/5/2025, 3:31:05 PM)
46.65
+0.66 (+1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.2%
Inst Owner Change0.33%
Ins Owners2.96%
Ins Owner Change-0.05%
Market Cap2.94B
Analysts81.67
Price Target69.02 (47.95%)
Short Float %12.85%
Short Ratio9.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)1%
PT rev (3m)5.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.01 | ||
| Fwd PE | 3.69 | ||
| P/S | 0.31 | ||
| P/FCF | 6.06 | ||
| P/OCF | 4.12 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.26 |
EPS(TTM)11.62
EY24.91%
EPS(NY)12.63
Fwd EY27.08%
FCF(TTM)7.69
FCFY16.49%
OCF(TTM)11.33
OCFY24.28%
SpS152.71
BVpS67.88
TBVpS-47.74
PEG (NY)0.95
PEG (5Y)0.39
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 | 1.45 |
F-Score6
WACC8.86%
ROIC/WACC0.65
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 Year1.67%
Revenue Next 2Y2.43%
Revenue Next 3Y2.81%
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%