CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNM - US21874C1027 - Common Stock
54.13 USD
-1.07 (-1.94%)
Overall CNM gets a fundamental rating of 5 out of 10. We evaluated CNM against 50 industry peers in the Trading Companies & Distributors industry. CNM has an excellent profitability rating, but there are some minor concerns on its financial health. CNM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CNM was profitable.
- CNM had a positive operating cash flow in the past year.
- 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
- The Return On Assets of CNM (6.90%) is better than 72.00% of its industry peers.
- Looking at the Return On Equity, with a value of 22.00%, CNM belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
- The Return On Invested Capital of CNM (10.92%) is better than 72.00% of its industry peers.
- CNM had an Average Return On Invested Capital over the past 3 years of 13.05%. This is above the industry average of 9.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22% | ||
| ROIC | 10.92% |
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 has a better Profit Margin (5.60%) than 64.00% of its industry peers.
- In the last couple of years the Profit Margin of CNM has grown nicely.
- CNM has a better Operating Margin (9.38%) than 66.00% of its industry peers.
- CNM's Operating Margin has improved in the last couple of years.
- The Gross Margin of CNM (26.82%) is worse than 60.00% of its industry peers.
- In the last couple of years the Gross Margin of CNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.38% | ||
| PM (TTM) | 5.6% | ||
| GM | 26.82% |
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
- Compared to 5 years ago, CNM has less shares outstanding
- The debt/assets ratio for CNM is higher compared to a year ago.
2.2 Solvency
- CNM has an Altman-Z score of 3.56. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.56, CNM is in line with its industry, outperforming 60.00% of the companies in the same industry.
- The Debt to FCF ratio of CNM is 3.74, which is a good value as it means it would take CNM, 3.74 years of fcf income to pay off all of its debts.
- CNM's Debt to FCF ratio of 3.74 is fine compared to the rest of the industry. CNM outperforms 66.00% of its industry peers.
- A Debt/Equity ratio of 1.08 is on the high side and indicates that CNM has dependencies on debt financing.
- CNM has a worse Debt to Equity ratio (1.08) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.08
WACC10.09%
2.3 Liquidity
- A Current Ratio of 2.26 indicates that CNM has no problem at all paying its short term obligations.
- CNM has a Current ratio (2.26) which is comparable to the rest of the industry.
- A Quick Ratio of 1.35 indicates that CNM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.35, CNM is in line with its industry, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.45% over the past year.
- The Earnings Per Share has been growing by 64.38% on average over the past years. This is a very strong growth
- CNM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.09%.
- CNM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.04% yearly.
EPS 1Y (TTM)16.45%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%20.27%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%1.18%
3.2 Future
- Based on estimates for the next years, CNM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
- CNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y27.03%
EPS Next 2Y14.64%
EPS Next 3Y13.03%
EPS Next 5Y9.89%
Revenue Next Year2.57%
Revenue Next 2Y3.37%
Revenue Next 3Y3.61%
Revenue Next 5Y4.83%
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
- CNM is valuated rather expensively with a Price/Earnings ratio of 20.12.
- Compared to the rest of the industry, the Price/Earnings ratio of CNM indicates a somewhat cheap valuation: CNM is cheaper than 66.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. CNM is valued slightly cheaper when compared to this.
- CNM is valuated rather expensively with a Price/Forward Earnings ratio of 17.91.
- Based on the Price/Forward Earnings ratio, CNM is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, CNM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 17.91 |
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.
- 82.00% 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 | 18.59 | ||
| EV/EBITDA | 14.06 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 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 13.03% in the coming years.
PEG (NY)0.74
PEG (5Y)0.31
EPS Next 2Y14.64%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
- CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CORE & MAIN INC-CLASS A / CNM FAQ
What is the fundamental rating for CNM stock?
ChartMill assigns a fundamental rating of 5 / 10 to CNM.
What is the valuation status for CNM stock?
ChartMill assigns a valuation rating of 6 / 10 to CORE & MAIN INC-CLASS A (CNM). This can be considered as Fairly Valued.
How profitable is CORE & MAIN INC-CLASS A (CNM) stock?
CORE & MAIN INC-CLASS A (CNM) has a profitability rating of 7 / 10.
How financially healthy is CORE & MAIN INC-CLASS A?
The financial health rating of CORE & MAIN INC-CLASS A (CNM) is 5 / 10.
Can you provide the expected EPS growth for CNM stock?
The Earnings per Share (EPS) of CORE & MAIN INC-CLASS A (CNM) is expected to grow by 27.03% in the next year.