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 decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CNM was profitable.
CNM had a positive operating cash flow in the past year.
Each year in the past 5 years CNM has been profitable.
CNM had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

CNM has a better Return On Assets (6.90%) than 72.00% of its industry peers.
With an excellent Return On Equity value of 22.00%, CNM belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
CNM's Return On Invested Capital of 10.92% is fine compared to the rest of the industry. CNM outperforms 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 Profit Margin of 5.60%. This is in the better half of the industry: CNM outperforms 64.00% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM has a better Operating Margin (9.38%) than 66.00% 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 26.82%, CNM is doing worse than 60.00% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for CNM has been reduced compared to 1 year ago.
CNM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CNM is higher compared to a year ago.

2.2 Solvency

CNM has an Altman-Z score of 3.53. This indicates that CNM is financially healthy and has little risk of bankruptcy at the moment.
CNM has a Altman-Z score (3.53) which is in line with its industry peers.
CNM has a debt to FCF ratio of 3.74. This is a good value and a sign of high solvency as CNM would need 3.74 years to pay back of all of its debts.
The Debt to FCF ratio of CNM (3.74) is better than 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 Debt to Equity ratio of 1.08. This is in the lower half of the industry: CNM underperforms 62.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.08
Debt/FCF	3.74
Altman-Z	3.53

ROIC/WACC1.08

WACC10.12%

2.3 Liquidity

CNM has a Current Ratio of 2.26. 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 2.26, CNM is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that CNM should not have too much problems paying its short term obligations.
CNM has a Quick ratio (1.35) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.26
Quick Ratio	1.35

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.45% 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 64.38% on average per year.
The Revenue has grown by 8.09% 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)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

CNM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.89% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 19.84, CNM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CNM indicates a somewhat cheap valuation: CNM is cheaper than 64.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, CNM is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.65 indicates a rather expensive valuation of CNM.
64.00% of the companies in the same industry are more expensive than CNM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CNM to the average of the S&P500 Index (25.57), we can say CNM is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	19.84
Fwd PE	17.65

4.2 Price Multiples

CNM's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNM indicates a rather cheap valuation: CNM is cheaper than 82.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.32
EV/EBITDA	13.84

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.
CNM has a very decent profitability rating, which 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.