For those who appreciate growth without the sticker shock, NYSE:CNM is worth considering.

Last update: Oct 23, 2023

Take a closer look at CORE & MAIN INC-CLASS A (NYSE:CNM), an affordable growth stock uncovered by our stock screener. NYSE:CNM boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Growth: NYSE:CNM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CNM has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 28.81% over the past year.
Measured over the past years, CNM shows a very strong growth in Earnings Per Share. The EPS has been growing by 105.30% on average per year.
Looking at the last year, CNM shows a quite strong growth in Revenue. The Revenue has grown by 8.46% in the last year.
The Revenue has been growing by 25.21% on average over the past years. This is a very strong growth!
CNM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.57% yearly.

Evaluating Valuation: NYSE:CNM

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CNM was assigned a score of 5 for valuation:

CNM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.03.
CNM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 18.58, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNM indicates a rather cheap valuation: CNM is cheaper than 81.48% of the companies listed in the same industry.
The decent profitability rating of CNM may justify a higher PE ratio.

Understanding NYSE:CNM's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CNM has achieved a 7 out of 10:

CNM has an Altman-Z score of 3.48. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CNM (3.48) is better than 62.96% of its industry peers.
CNM has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
CNM's Debt to FCF ratio of 1.87 is fine compared to the rest of the industry. CNM outperforms 66.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for CNM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
CNM has a Current Ratio of 2.59. This indicates that CNM is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.59, CNM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.53, CNM is in the better half of the industry, outperforming 75.93% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CNM has earned a 6 out of 10:

Looking at the Return On Assets, with a value of 7.16%, CNM is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
CNM has a better Return On Equity (21.30%) than 70.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.92%, CNM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The last Return On Invested Capital (14.92%) for CNM is above the 3 year average (9.76%), which is a sign of increasing profitability.
In the last couple of years the Profit Margin of CNM has grown nicely.
CNM's Operating Margin of 11.56% is fine compared to the rest of the industry. CNM outperforms 74.07% of its industry peers.
In the last couple of years the Operating Margin of CNM has grown nicely.
In the last couple of years the Gross Margin of CNM has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of CNM for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.