CORE & MAIN INC-CLASS A (CNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNM - US21874C1027 - Common Stock
58.58 USD
-0.51 (-0.86%)
58.58 USD
0 (0%)
CNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
1. Profitability
1.1 Basic Checks
- CNM had positive earnings in the past year.
- CNM had a positive operating cash flow in the past year.
- Each year in the past 5 years CNM has been profitable.
- Of the past 5 years CNM 4 years had a positive operating cash flow.
1.2 Ratios
- CNM has a Return On Assets of 6.90%. This is in the better half of the industry: CNM outperforms 72.00% of its industry peers.
- The Return On Equity of CNM (22.00%) is better than 86.00% of its industry peers.
- With a decent Return On Invested Capital value of 10.92%, CNM is doing good in the industry, outperforming 72.00% 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 9.64%.
| 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.
- 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.
- CNM has a Gross Margin of 26.82%. This is in the lower half of the industry: CNM underperforms 60.00% of its industry peers.
- CNM's Gross Margin has improved in the last couple of years.
| 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
- 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
- Compared to 1 year ago, CNM has a worse debt to assets ratio.
2.2 Solvency
- CNM has an Altman-Z score of 3.66. 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 3.66, CNM is in line with its industry, outperforming 58.00% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 3.74, CNM is in the better half of 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.
- With a Debt to Equity ratio value of 1.08, CNM is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.08
WACC10.1%
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.
- 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's Quick ratio of 1.35 is in line compared to the rest of the industry. CNM outperforms 54.00% of its industry peers.
| 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.
- CNM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.38% yearly.
- 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
- 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.
- The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y10.33%
EPS Next 2Y12.71%
EPS Next 3Y12.85%
EPS Next 5Y9.89%
Revenue Next Year2.34%
Revenue Next 2Y3.14%
Revenue Next 3Y3.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.78, the valuation of CNM can be described as rather expensive.
- Based on the Price/Earnings ratio, CNM is valued a bit cheaper than 66.00% of the companies in the same industry.
- CNM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 20.05, CNM is valued on the expensive side.
- 62.00% of the companies in the same industry are more expensive than CNM, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CNM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 20.05 |
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 | 20.11 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNM does not grow enough to justify the current Price/Earnings ratio.
- 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 12.85% in the coming years.
PEG (NY)2.11
PEG (5Y)0.34
EPS Next 2Y12.71%
EPS Next 3Y12.85%
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 4 / 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 10.33% in the next year.