CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
NYSE:CNM - New York Stock Exchange, Inc. - US21874C1027 - Common Stock - Currency: USD
CNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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 is valied quite expensively at the moment, while it does show a decent 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.
CNM had positive earnings in each of the past 5 years.
CNM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CNM has a better Return On Assets (7.00%) than 70.83% of its industry peers.
CNM has a better Return On Equity (24.20%) than 87.50% of its industry peers.
With a decent Return On Invested Capital value of 11.19%, CNM is doing good in the industry, outperforming 77.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNM is above the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 24.2% | ||
| ROIC | 11.19% |
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
The Profit Margin of CNM (5.52%) is better than 60.42% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM's Operating Margin of 9.66% is fine compared to the rest of the industry. CNM outperforms 64.58% of its industry peers.
CNM's Operating Margin has improved in the last couple of years.
CNM has a worse Gross Margin (26.61%) than 62.50% of its industry peers.
CNM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 5.52% | ||
| GM | 26.61% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNM is still creating some value.
Compared to 1 year ago, CNM has less shares outstanding
Compared to 5 years ago, CNM has less shares outstanding
CNM has a worse debt/assets ratio than last year.
2.2 Solvency
CNM has an Altman-Z score of 3.43. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
CNM has a better Altman-Z score (3.43) than 64.58% of its industry peers.
The Debt to FCF ratio of CNM is 3.86, which is a good value as it means it would take CNM, 3.86 years of fcf income to pay off all of its debts.
CNM's Debt to FCF ratio of 3.86 is fine compared to the rest of the industry. CNM outperforms 68.75% of its industry peers.
CNM has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
CNM has a Debt to Equity ratio of 1.32. This is in the lower half of the industry: CNM underperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.1
WACC10.22%
2.3 Liquidity
CNM has a Current Ratio of 2.34. This indicates that CNM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.34, CNM is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
CNM has a Quick Ratio of 1.29. This is a normal value and indicates that CNM is financially healthy and should not expect problems in meeting its short term obligations.
CNM has a Quick ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
CNM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.95%.
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 11.03%.
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)-2.95%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%17.92%
3.2 Future
The Earnings Per Share is expected to grow by 12.07% on average over the next years. This is quite good.
CNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y8.72%
EPS Next 2Y12.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.37%
Revenue Next 2Y4.37%
Revenue Next 3Y5.04%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 21.57, which indicates a rather expensive current valuation of CNM.
CNM's Price/Earnings is on the same level as the industry average.
CNM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
CNM is valuated rather expensively with a Price/Forward Earnings ratio of 19.84.
CNM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.08. CNM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNM indicates a slightly more expensive valuation: CNM is more expensive than 64.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNM is valued a bit cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.75 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.07% in the coming years.
PEG (NY)2.47
PEG (5Y)0.33
EPS Next 2Y12.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.6
+0.96 (+1.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change0.01%
Ins Owners0.35%
Ins Owner Change6.06%
Market Cap9.82B
Analysts77.65
Price Target60.97 (22.92%)
Short Float %7.56%
Short Ratio8.44
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)2
Avg EPS beat(2)6.61%
Min EPS beat(2)0.71%
Max EPS beat(2)12.5%
EPS beat(4)3
Avg EPS beat(4)0.88%
Min EPS beat(4)-10.01%
Max EPS beat(4)12.5%
EPS beat(8)7
Avg EPS beat(8)4.03%
EPS beat(12)11
Avg EPS beat(12)8.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.41%
Max Revenue beat(2)1.49%
Revenue beat(4)3
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.49%
Max Revenue beat(4)1.49%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)6
Avg Revenue beat(12)1.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.22%
PT rev (3m)0%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)2.04%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.84 | ||
| P/S | 1.32 | ||
| P/FCF | 16.75 | ||
| P/OCF | 15.81 | ||
| P/B | 5.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.22 |
EPS(TTM)2.3
EY4.64%
EPS(NY)2.5
Fwd EY5.04%
FCF(TTM)2.96
FCFY5.97%
OCF(TTM)3.14
OCFY6.33%
SpS37.6
BVpS8.58
TBVpS-5.74
PEG (NY)2.47
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 24.2% | ||
| ROCE | 14.37% | ||
| ROIC | 11.19% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 25.89% | ||
| OM | 9.66% | ||
| PM (TTM) | 5.52% | ||
| GM | 26.61% | ||
| FCFM | 7.88% |
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-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 18.04% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 68.02% | ||
| Profit Quality | 142.58% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.43 |
F-Score4
WACC10.22%
ROIC/WACC1.1
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)-2.95%
EPS 3Y44.94%
EPS 5Y64.38%
EPS Q2Q%-2.63%
EPS Next Y8.72%
EPS Next 2Y12.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.03%
Revenue growth 3Y14.14%
Revenue growth 5Y17.04%
Sales Q2Q%17.92%
Revenue Next Year4.37%
Revenue Next 2Y4.37%
Revenue Next 3Y5.04%
Revenue Next 5YN/A
EBIT growth 1Y-3.49%
EBIT growth 3Y19.16%
EBIT growth 5Y35.85%
EBIT Next Year34.85%
EBIT Next 3Y16.99%
EBIT Next 5YN/A
FCF growth 1Y-43.11%
FCF growth 3YN/A
FCF growth 5Y24.92%
OCF growth 1Y-41.91%
OCF growth 3YN/A
OCF growth 5Y24.63%