CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
NYSE:CNM - New York Stock Exchange, Inc. - US21874C1027 - Common Stock - Currency: USD
Taking everything into account, CNM scores 5 out of 10 in our fundamental rating. CNM was compared to 49 industry peers in the Trading Companies & Distributors industry. While CNM has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, CNM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CNM was profitable.
In the past year CNM had a positive cash flow from operations.
In the past 5 years CNM has always been profitable.
Of the past 5 years CNM 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.63%, CNM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
CNM has a Return On Equity of 23.85%. This is amongst the best in the industry. CNM outperforms 83.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.18%, CNM is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNM is above the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 23.85% | ||
| ROIC | 11.18% |
ROA(3y)7.26%
ROA(5y)5.33%
ROE(3y)23.57%
ROE(5y)17.76%
ROIC(3y)13.05%
ROIC(5y)10.52%
1.3 Margins
CNM's Profit Margin of 5.47% is fine compared to the rest of the industry. CNM outperforms 69.39% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM's Operating Margin of 9.49% is fine compared to the rest of the industry. CNM outperforms 69.39% of its industry peers.
In the last couple of years the Operating Margin of CNM has grown nicely.
Looking at the Gross Margin, with a value of 26.57%, CNM is doing worse than 61.22% of the companies in the same industry.
CNM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.57% |
OM growth 3Y4.39%
OM growth 5Y16.07%
PM growth 3Y18.52%
PM growth 5Y35.35%
GM growth 3Y1.32%
GM growth 5Y2.7%
2. Health
2.1 Basic Checks
CNM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CNM has less shares outstanding
The number of shares outstanding for CNM has been reduced compared to 5 years ago.
The debt/assets ratio for CNM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.55 indicates that CNM is not in any danger for bankruptcy at the moment.
CNM has a Altman-Z score of 3.55. This is in the better half of the industry: CNM outperforms 61.22% of its industry peers.
CNM has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as CNM would need 3.91 years to pay back of all of its debts.
CNM has a Debt to FCF ratio of 3.91. This is comparable to the rest of the industry: CNM outperforms 55.10% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CNM has dependencies on debt financing.
CNM has a Debt to Equity ratio of 1.28. This is in the lower half of the industry: CNM underperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.08
WACC10.38%
2.3 Liquidity
A Current Ratio of 1.96 indicates that CNM should not have too much problems paying its short term obligations.
The Current ratio of CNM (1.96) is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that CNM should not have too much problems paying its short term obligations.
CNM has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for CNM have decreased by -3.36% in the last year.
Measured over the past years, CNM shows a very strong growth in Earnings Per Share. The EPS has been growing by 64.38% on average per year.
The Revenue has grown by 10.80% in the past year. This is quite good.
Measured over the past years, CNM shows a quite strong growth in Revenue. The Revenue has been growing by 17.04% on average per year.
EPS 1Y (TTM)-3.36%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%0%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%9.76%
3.2 Future
CNM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.00% yearly.
CNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y7.97%
EPS Next 2Y11.31%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y4.9%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 27.10 indicates a quite expensive valuation of CNM.
CNM's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, CNM is valued at the same level.
CNM is valuated rather expensively with a Price/Forward Earnings ratio of 21.87.
CNM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CNM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNM is on the same level as its industry peers.
73.47% of the companies in the same industry are more expensive than CNM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.22 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CNM may justify a higher PE ratio.
A more expensive valuation may be justified as CNM's earnings are expected to grow with 13.00% in the coming years.
PEG (NY)3.4
PEG (5Y)0.42
EPS Next 2Y11.31%
EPS Next 3Y13%
5. Dividend
5.1 Amount
CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.33
+0.49 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners111.77%
Inst Owner Change4.74%
Ins Owners0.55%
Ins Owner Change6.83%
Market Cap12.29B
Analysts77.78
Price Target64.32 (3.19%)
Short Float %7.36%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.68%
Min EPS beat(2)-2.07%
Max EPS beat(2)0.71%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-10.01%
Max EPS beat(4)12.5%
EPS beat(8)6
Avg EPS beat(8)2.7%
EPS beat(12)10
Avg EPS beat(12)8.17%
EPS beat(16)14
Avg EPS beat(16)23.77%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)0.41%
Max Revenue beat(2)2.25%
Revenue beat(4)3
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-5.49%
Max Revenue beat(4)2.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.87%
Revenue beat(16)10
Avg Revenue beat(16)2.72%
PT rev (1m)5.47%
PT rev (3m)3.15%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 21.87 | ||
| P/S | 1.61 | ||
| P/FCF | 21.22 | ||
| P/OCF | 19.81 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)2.3
EY3.69%
EPS(NY)2.85
Fwd EY4.57%
FCF(TTM)2.94
FCFY4.71%
OCF(TTM)3.15
OCFY5.05%
SpS38.61
BVpS8.85
TBVpS-5.36
PEG (NY)3.4
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 23.85% | ||
| ROCE | 14.35% | ||
| ROIC | 11.18% | ||
| ROICexc | 11.19% | ||
| ROICexgc | 25.29% | ||
| OM | 9.49% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.57% | ||
| FCFM | 7.61% |
ROA(3y)7.26%
ROA(5y)5.33%
ROE(3y)23.57%
ROE(5y)17.76%
ROIC(3y)13.05%
ROIC(5y)10.52%
ROICexc(3y)13.27%
ROICexc(5y)10.76%
ROICexgc(3y)30.58%
ROICexgc(5y)28.28%
ROCE(3y)16.76%
ROCE(5y)13.51%
ROICexcg growth 3Y-1.87%
ROICexcg growth 5Y6.48%
ROICexc growth 3Y6.77%
ROICexc growth 5Y19.1%
OM growth 3Y4.39%
OM growth 5Y16.07%
PM growth 3Y18.52%
PM growth 5Y35.35%
GM growth 3Y1.32%
GM growth 5Y2.7%
F-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 20.92% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 67.54% | ||
| Profit Quality | 139.18% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.55 |
F-Score6
WACC10.38%
ROIC/WACC1.08
Cap/Depr(3y)20.09%
Cap/Depr(5y)16.28%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.43%
Profit Quality(3y)174.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.36%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%0%
EPS Next Y7.97%
EPS Next 2Y11.31%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue 1Y (TTM)10.8%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%9.76%
Revenue Next Year4.5%
Revenue Next 2Y4.9%
Revenue Next 3Y5.27%
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year33.49%
EBIT Next 3Y16.16%
EBIT Next 5YN/A
FCF growth 1Y9.45%
FCF growth 3YN/A
FCF growth 5Y24.92%
OCF growth 1Y11.11%
OCF growth 3YN/A
OCF growth 5Y24.63%