Taking everything into account, CNM scores 5 out of 10 in our fundamental rating. CNM was compared to 50 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.

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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.
In the past year CNM had a positive cash flow from operations.
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

The Profit Margin of CNM (5.60%) is better than 64.00% of its industry peers.
CNM's Profit Margin has improved in the last couple of years.
CNM's Operating Margin of 9.38% is fine compared to the rest of the industry. CNM outperforms 66.00% of its industry peers.
CNM's Operating Margin has improved in the last couple of years.
CNM's Gross Margin of 26.82% is on the low side compared to the rest of the industry. CNM is outperformed by 62.00% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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

2.2 Solvency

An Altman-Z score of 3.51 indicates that CNM is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.51, CNM perfoms like the industry average, outperforming 58.00% 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.
With a decent Debt to FCF ratio value of 3.74, CNM is doing good in the industry, outperforming 66.00% of the companies in the same industry.
CNM has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, CNM is doing worse than 62.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.08
Debt/FCF	3.74
Altman-Z	3.51

ROIC/WACC1.07

WACC10.23%

2.3 Liquidity

A Current Ratio of 2.26 indicates that CNM has no problem at all paying its short term obligations.
The Current ratio of CNM (2.26) is comparable to the rest of the industry.
CNM has a Quick Ratio of 1.35. 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 (1.35) which is in line with its industry peers.

		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

CNM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.45%, which is quite good.
CNM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.38% yearly.
Looking at the last year, CNM shows a quite strong growth in Revenue. The Revenue has grown by 8.09% in the last year.
The Revenue has been growing by 17.04% on average over the past years. This is quite good.

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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.30, which indicates a rather expensive current valuation of CNM.
Based on the Price/Earnings ratio, CNM is valued a bit cheaper than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.41, CNM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.06, the valuation of CNM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CNM is valued a bit cheaper than 66.00% of the companies in the same industry.
CNM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	20.3
Fwd PE	18.06

4.2 Price Multiples

CNM's Enterprise Value to EBITDA is on the same level as the industry average.
CNM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNM is cheaper than 84.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.75
EV/EBITDA	13.66

4.3 Compensation for Growth

CNM's 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.