CORE & MAIN INC-CLASS A (CNM)
US21874C1027 - Common Stock
We assign a fundamental rating of 5 out of 10 to CNM. CNM was compared to 52 industry peers in the Trading Companies & Distributors industry. While CNM has a great profitability rating, there are some minor concerns on its financial health. CNM has a decent growth rate and is not valued too expensively.
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.
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
Looking at the Return On Assets, with a value of 6.38%, CNM is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
With an excellent Return On Equity value of 23.66%, CNM belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
CNM has a better Return On Invested Capital (11.31%) than 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNM is above the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 23.66% | ||
| ROIC | 11.31% |
ROA(3y)6.17%
ROA(5y)4.19%
ROE(3y)19.68%
ROE(5y)14.21%
ROIC(3y)12.93%
ROIC(5y)9.55%
1.3 Margins
The Profit Margin of CNM (5.58%) is comparable to the rest of the industry.
CNM's Profit Margin has improved in the last couple of years.
The Operating Margin of CNM (10.15%) is better than 75.00% of its industry peers.
CNM's Operating Margin has improved in the last couple of years.
The Gross Margin of CNM (26.74%) is worse than 61.54% of its industry peers.
In the last couple of years the Gross Margin of CNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 5.58% | ||
| GM | 26.74% |
OM growth 3Y29.72%
OM growth 5Y20.79%
PM growth 3Y65.47%
PM growth 5Y37.09%
GM growth 3Y4%
GM growth 5Y4.17%
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 1 year ago, CNM has a worse debt to assets ratio.
2.2 Solvency
CNM has an Altman-Z score of 3.04. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
CNM has a Altman-Z score of 3.04. This is comparable to the rest of the industry: CNM outperforms 51.92% of its industry peers.
The Debt to FCF ratio of CNM is 3.22, which is a good value as it means it would take CNM, 3.22 years of fcf income to pay off all of its debts.
CNM's Debt to FCF ratio of 3.22 is fine compared to the rest of the industry. CNM outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that CNM has dependencies on debt financing.
CNM's Debt to Equity ratio of 1.46 is on the low side compared to the rest of the industry. CNM is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.11
WACC10.16%
2.3 Liquidity
A Current Ratio of 2.29 indicates that CNM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, CNM is in line with its industry, outperforming 51.92% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that CNM should not have too much problems paying its short term obligations.
The Quick ratio of CNM (1.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
CNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.88%.
The Earnings Per Share has been growing by 60.95% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.21% in the past year.
The Revenue has been growing by 15.92% on average over the past years. This is quite good.
EPS 1Y (TTM)0.88%
EPS 3Y108.01%
EPS 5Y60.95%
EPS Q2Q%-10.67%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y22.54%
Revenue growth 5Y15.92%
Sales Q2Q%5.53%
3.2 Future
CNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y-7.2%
EPS Next 2Y2.25%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year8.85%
Revenue Next 2Y6.85%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 18.95, CNM is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CNM.
CNM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.20.
The Price/Forward Earnings ratio is 17.59, which indicates a rather expensive current valuation of CNM.
CNM's Price/Forward Earnings ratio is in line with the industry average.
CNM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.59 |
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.
CNM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNM is cheaper than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.64 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
The decent profitability rating of CNM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y2.25%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
No dividends for CNM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CORE & MAIN INC-CLASS A
NYSE:CNM (11/4/2024, 8:04:00 PM)
After market: 43.58 0 (0%)43.58
+0.33 (+0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 23.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.15% | ||
| PM (TTM) | 5.58% | ||
| GM | 26.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.88%
EPS 3Y108.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.21%
Revenue growth 3Y22.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y