Logo image of CNXC

CONCENTRIX CORP (CNXC) Stock Fundamental Analysis

NASDAQ:CNXC - Nasdaq - US20602D1019 - Common Stock - Currency: USD

52.54  +0.1 (+0.19%)

After market: 52.75 +0.21 (+0.4%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CNXC. CNXC was compared to 82 industry peers in the IT Services industry. While CNXC is still in line with the averages on profitability rating, there are concerns on its financial health. CNXC is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

In the past year CNXC was profitable.
CNXC had a positive operating cash flow in the past year.
Of the past 5 years CNXC 4 years were profitable.
Of the past 5 years CNXC 4 years had a positive operating cash flow.
CNXC Yearly Net Income VS EBIT VS OCF VS FCFCNXC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

1.2 Ratios

CNXC has a Return On Assets (2.04%) which is in line with its industry peers.
With a decent Return On Equity value of 5.96%, CNXC is doing good in the industry, outperforming 62.03% of the companies in the same industry.
The Return On Invested Capital of CNXC (6.79%) is better than 64.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNXC is in line with the industry average of 9.86%.
Industry RankSector Rank
ROA 2.04%
ROE 5.96%
ROIC 6.79%
ROA(3y)5.6%
ROA(5y)4.5%
ROE(3y)12.86%
ROE(5y)10.74%
ROIC(3y)8.17%
ROIC(5y)7.49%
CNXC Yearly ROA, ROE, ROICCNXC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

CNXC's Profit Margin of 2.10% is in line compared to the rest of the industry. CNXC outperforms 56.96% of its industry peers.
In the last couple of years the Profit Margin of CNXC has grown nicely.
CNXC's Operating Margin of 8.03% is fine compared to the rest of the industry. CNXC outperforms 65.82% of its industry peers.
CNXC's Operating Margin has improved in the last couple of years.
CNXC has a Gross Margin (36.07%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CNXC has remained more or less at the same level.
Industry RankSector Rank
OM 8.03%
PM (TTM) 2.1%
GM 36.07%
OM growth 3Y13%
OM growth 5Y6.83%
PM growth 3Y7.41%
PM growth 5Y17.15%
GM growth 3Y0.96%
GM growth 5Y-0.98%
CNXC Yearly Profit, Operating, Gross MarginsCNXC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 10 20 30

More info and screens

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXC is destroying value.
CNXC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CNXC Yearly Shares OutstandingCNXC Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 20M 40M 60M
CNXC Yearly Total Debt VS Total AssetsCNXC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

CNXC has an Altman-Z score of 1.71. This is a bad value and indicates that CNXC is not financially healthy and even has some risk of bankruptcy.
CNXC's Altman-Z score of 1.71 is on the low side compared to the rest of the industry. CNXC is outperformed by 64.56% of its industry peers.
The Debt to FCF ratio of CNXC is 13.32, which is on the high side as it means it would take CNXC, 13.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNXC (13.32) is worse than 60.76% of its industry peers.
CNXC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
CNXC has a worse Debt to Equity ratio (1.18) than 69.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 13.32
Altman-Z 1.71
ROIC/WACC0.72
WACC9.43%
CNXC Yearly LT Debt VS Equity VS FCFCNXC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.3 Liquidity

CNXC has a Current Ratio of 1.57. This is a normal value and indicates that CNXC is financially healthy and should not expect problems in meeting its short term obligations.
CNXC has a Current ratio of 1.57. This is comparable to the rest of the industry: CNXC outperforms 50.63% of its industry peers.
CNXC has a Quick Ratio of 1.57. This is a normal value and indicates that CNXC is financially healthy and should not expect problems in meeting its short term obligations.
CNXC has a Quick ratio of 1.57. This is comparable to the rest of the industry: CNXC outperforms 50.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 1.57
CNXC Yearly Current Assets VS Current LiabilitesCNXC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 1B 2B 3B

More info and screens

3

3. Growth

3.1 Past

CNXC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.62%.
CNXC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.95% yearly.
EPS 1Y (TTM)0.62%
EPS 3Y3.95%
EPS 5YN/A
EPS Q2Q%-2.98%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.74%

3.2 Future

CNXC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.53% yearly.
Based on estimates for the next years, CNXC will show a small growth in Revenue. The Revenue will grow by 2.32% on average per year.
EPS Next Y7.84%
EPS Next 2Y6.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y1%
Revenue Next 3Y2.32%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
CNXC Yearly Revenue VS EstimatesCNXC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
CNXC Yearly EPS VS EstimatesCNXC Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

More info and screens

9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.61, the valuation of CNXC can be described as very cheap.
CNXC's Price/Earnings ratio is rather cheap when compared to the industry. CNXC is cheaper than 97.47% of the companies in the same industry.
CNXC is valuated cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.28, which indicates a rather cheap valuation of CNXC.
CNXC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXC is cheaper than 98.73% of the companies in the same industry.
CNXC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.61
Fwd PE 4.28
CNXC Price Earnings VS Forward Price EarningsCNXC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

93.67% of the companies in the same industry are more expensive than CNXC, based on the Enterprise Value to EBITDA ratio.
94.94% of the companies in the same industry are more expensive than CNXC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.24
EV/EBITDA 4.92
CNXC Per share dataCNXC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

4.3 Compensation for Growth

CNXC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CNXC may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y6.53%
EPS Next 3YN/A

More info and screens

5

5. Dividend

5.1 Amount

CNXC has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.96, CNXC pays a better dividend. On top of this CNXC pays more dividend than 94.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CNXC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.37%

5.2 History

CNXC has been paying a dividend for over 5 years, so it has already some track record.
CNXC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
CNXC Yearly Dividends per shareCNXC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

32.91% of the earnings are spent on dividend by CNXC. This is a low number and sustainable payout ratio.
DP32.91%
EPS Next 2Y6.53%
EPS Next 3YN/A
CNXC Yearly Income VS Free CF VS DividendCNXC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
CNXC Dividend Payout.CNXC Dividend Payout, showing the Payout Ratio.CNXC Dividend Payout.PayoutRetained Earnings

More info and screens

CONCENTRIX CORP

NASDAQ:CNXC (1/24/2025, 8:00:01 PM)

After market: 52.75 +0.21 (+0.4%)

52.54

+0.1 (+0.19%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-15 2025-01-15/amc
Earnings (Next)N/A N/A
Inst Owners82.78%
Inst Owner Change0.61%
Ins Owners2.89%
Ins Owner Change-0.04%
Market Cap3.41B
Analysts81.67
Price Target74.97 (42.69%)
Short Float %13.01%
Short Ratio10.6
Dividend
Industry RankSector Rank
Dividend Yield 2.37%
Yearly Dividend1.09
Dividend Growth(5Y)N/A
DP32.91%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-31 2025-01-31 (0.33275)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.71%
Min EPS beat(2)-3.89%
Max EPS beat(2)0.47%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-3.89%
Max EPS beat(4)6.95%
EPS beat(8)2
Avg EPS beat(8)-3.02%
EPS beat(12)5
Avg EPS beat(12)-1.15%
EPS beat(16)8
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-0.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.75%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-2.12%
Revenue beat(12)0
Avg Revenue beat(12)-2.1%
Revenue beat(16)2
Avg Revenue beat(16)-1.39%
PT rev (1m)-4.34%
PT rev (3m)-20.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
Industry RankSector Rank
PE 4.61
Fwd PE 4.28
P/S 0.29
P/FCF 9.24
P/OCF 5.56
P/B 0.82
P/tB N/A
EV/EBITDA 4.92
EPS(TTM)11.39
EY21.68%
EPS(NY)12.28
Fwd EY23.38%
FCF(TTM)5.69
FCFY10.83%
OCF(TTM)9.45
OCFY17.98%
SpS182.11
BVpS64.31
TBVpS-52.43
PEG (NY)0.59
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.04%
ROE 5.96%
ROCE 9.12%
ROIC 6.79%
ROICexc 6.95%
ROICexgc 27.32%
OM 8.03%
PM (TTM) 2.1%
GM 36.07%
FCFM 3.12%
ROA(3y)5.6%
ROA(5y)4.5%
ROE(3y)12.86%
ROE(5y)10.74%
ROIC(3y)8.17%
ROIC(5y)7.49%
ROICexc(3y)8.46%
ROICexc(5y)7.73%
ROICexgc(3y)28.99%
ROICexgc(5y)25.99%
ROCE(3y)10.98%
ROCE(5y)11.93%
ROICexcg growth 3Y10.3%
ROICexcg growth 5Y12.27%
ROICexc growth 3Y-4.79%
ROICexc growth 5Y8.99%
OM growth 3Y13%
OM growth 5Y6.83%
PM growth 3Y7.41%
PM growth 5Y17.15%
GM growth 3Y0.96%
GM growth 5Y-0.98%
F-Score7
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 13.32
Debt/EBITDA 2.99
Cap/Depr 35.19%
Cap/Sales 2.06%
Interest Coverage 250
Cash Conversion 37.33%
Profit Quality 148.37%
Current Ratio 1.57
Quick Ratio 1.57
Altman-Z 1.71
F-Score7
WACC9.43%
ROIC/WACC0.72
Cap/Depr(3y)48.51%
Cap/Depr(5y)48.76%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.68%
Profit Quality(3y)120.15%
Profit Quality(5y)170.69%
High Growth Momentum
Growth
EPS 1Y (TTM)0.62%
EPS 3Y3.95%
EPS 5YN/A
EPS Q2Q%-2.98%
EPS Next Y7.84%
EPS Next 2Y6.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.74%
Revenue Next Year0.39%
Revenue Next 2Y1%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
EBIT growth 1Y33.72%
EBIT growth 3Y29.57%
EBIT growth 5Y32.08%
EBIT Next Year70.88%
EBIT Next 3Y21.4%
EBIT Next 5YN/A
FCF growth 1Y-10.86%
FCF growth 3Y13.94%
FCF growth 5Y32.94%
OCF growth 1Y11.94%
OCF growth 3Y10.13%
OCF growth 5Y26.14%