CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
USA - NASDAQ:CNXC - US20602D1019 - Common Stock
40.96 USD
-1.69 (-3.96%)
40.7 USD
-0.26 (-0.63%)
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. CNXC was compared to 85 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
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.
CNXC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.89%, CNXC is in line with its industry, outperforming 51.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.47%, CNXC is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
CNXC has a Return On Invested Capital (5.75%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNXC is significantly below the industry average of 27.89%.
| 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
CNXC's Profit Margin of 2.43% is in line compared to the rest of the industry. CNXC outperforms 49.41% of its industry peers.
CNXC's Profit Margin has been stable in the last couple of years.
CNXC's Operating Margin of 7.75% is fine compared to the rest of the industry. CNXC outperforms 63.53% 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.
CNXC's Gross Margin has been stable in the last couple of years.
| 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.
CNXC has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.43, CNXC is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of CNXC is 10.09, which is on the high side as it means it would take CNXC, 10.09 years of fcf income to pay off all of its debts.
CNXC has a Debt to FCF ratio of 10.09. This is comparable to the rest of the industry: CNXC outperforms 49.41% of its industry peers.
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 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.68
WACC8.48%
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 of 1.61. This is comparable to the rest of the industry: CNXC outperforms 45.88% of its industry peers.
A Quick Ratio of 1.61 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC's Quick ratio of 1.61 is in line compared to the rest of the industry. CNXC outperforms 47.06% of 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 0.35% over the past year.
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 has grown by 35.20% 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)0.35%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-3.14%
Revenue 1Y (TTM)35.2%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%4.01%
3.2 Future
CNXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.77% yearly.
CNXC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.90% yearly.
EPS Next Y1.85%
EPS Next 2Y5.08%
EPS Next 3Y7.77%
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y2.62%
Revenue Next 3Y2.9%
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.
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
A Price/Earnings ratio of 3.55 indicates a rather cheap valuation of CNXC.
97.65% of the companies in the same industry are more expensive than CNXC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.19. CNXC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.26, 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 98.82% 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 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.55 | ||
| Fwd PE | 3.26 |
4.2 Price Multiples
CNXC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXC is cheaper than 94.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNXC is valued cheaper than 96.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.92
PEG (5Y)0.34
EPS Next 2Y5.08%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.50, CNXC pays a better dividend. On top of this CNXC pays more dividend than 95.29% of the companies listed in the same industry.
CNXC's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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 2Y5.08%
EPS Next 3Y7.77%
40.96
-1.69 (-3.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.33%
Inst Owner Change1.46%
Ins Owners0.62%
Ins Owner Change-0.01%
Market Cap2.55B
Revenue(TTM)9.62B
Net Income(TTM)233.99M
Analysts81.82
Price Target66.1 (61.38%)
Short Float %16.49%
Short Ratio10.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-4.24%
PT rev (3m)-4.24%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)-2.68%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.55 | ||
| Fwd PE | 3.26 | ||
| P/S | 0.26 | ||
| P/FCF | 5.26 | ||
| P/OCF | 3.57 | ||
| P/B | 0.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)11.53
EY28.15%
EPS(NY)12.58
Fwd EY30.7%
FCF(TTM)7.79
FCFY19.02%
OCF(TTM)11.47
OCFY28%
SpS154.59
BVpS68.72
TBVpS-48.33
PEG (NY)1.92
PEG (5Y)0.34
Graham Number133.52
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%
ROICexgc growth 3Y-8.2%
ROICexgc 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 | 1.43 |
F-Score6
WACC8.48%
ROIC/WACC0.68
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)0.35%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-3.14%
EPS Next Y1.85%
EPS Next 2Y5.08%
EPS Next 3Y7.77%
EPS Next 5YN/A
Revenue 1Y (TTM)35.2%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%4.01%
Revenue Next Year2.01%
Revenue Next 2Y2.62%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
EBIT growth 1Y-20.64%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year27.63%
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%
CONCENTRIX CORP / CNXC FAQ
What is the ChartMill fundamental rating of CONCENTRIX CORP (CNXC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CNXC.
What is the valuation status of CONCENTRIX CORP (CNXC) stock?
ChartMill assigns a valuation rating of 7 / 10 to CONCENTRIX CORP (CNXC). This can be considered as Undervalued.
Can you provide the profitability details for CONCENTRIX CORP?
CONCENTRIX CORP (CNXC) has a profitability rating of 5 / 10.
What is the valuation of CONCENTRIX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONCENTRIX CORP (CNXC) is 3.55 and the Price/Book (PB) ratio is 0.6.
What is the expected EPS growth for CONCENTRIX CORP (CNXC) stock?
The Earnings per Share (EPS) of CONCENTRIX CORP (CNXC) is expected to grow by 1.85% in the next year.