CONCENTRIX CORP (CNXC)
US20602D1019 - Common Stock
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. CNXC was compared to 85 industry peers in the IT Services industry. There are concerns on the financial health of CNXC while its profitability can be described as average. CNXC has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year CNXC was profitable.
In the past year CNXC had a positive cash flow from operations.
Each year in the past 5 years CNXC has been profitable.
In the past 5 years CNXC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CNXC (2.04%) is comparable to the rest of the industry.
CNXC has a Return On Equity of 5.96%. This is in the better half of the industry: CNXC outperforms 63.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.79%, CNXC is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNXC is in line with the industry average of 9.06%.
| Industry Rank | Sector 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%
1.3 Margins
CNXC has a Profit Margin of 2.10%. This is comparable to the rest of the industry: CNXC outperforms 54.22% of its industry peers.
In the last couple of years the Profit Margin of CNXC has grown nicely.
With a decent Operating Margin value of 8.03%, CNXC is doing good in the industry, outperforming 63.86% of the companies in the same industry.
CNXC's Operating Margin has improved in the last couple of years.
CNXC has a Gross Margin of 36.07%. This is comparable to the rest of the industry: CNXC outperforms 59.04% of its industry peers.
CNXC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNXC is still creating some value.
Compared to 1 year ago, CNXC has more shares outstanding
Compared to 5 years ago, CNXC has more shares outstanding
CNXC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that CNXC is in the distress zone and has some risk of bankruptcy.
CNXC's Altman-Z score of 1.65 is in line compared to the rest of the industry. CNXC outperforms 42.17% 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.
CNXC's Debt to FCF ratio of 13.32 is in line compared to the rest of the industry. CNXC outperforms 44.58% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that CNXC has dependencies on debt financing.
The Debt to Equity ratio of CNXC (1.18) is worse than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 13.32 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.85
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.57 indicates that CNXC should not have too much problems paying its short term obligations.
The Current ratio of CNXC (1.57) is comparable to the rest of the industry.
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 49.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
CNXC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.74%.
The Earnings Per Share has been growing by 43.40% on average over the past years. This is a very strong growth
Looking at the last year, CNXC shows a very strong growth in Revenue. The Revenue has grown by 80.92%.
Measured over the past years, CNXC shows a very strong growth in Revenue. The Revenue has been growing by 23.63% on average per year.
EPS 1Y (TTM)4.74%
EPS 3Y21.35%
EPS 5Y43.4%
EPS Q2Q%5.9%
Revenue 1Y (TTM)80.92%
Revenue growth 3Y14.66%
Revenue growth 5Y23.63%
Sales Q2Q%46.21%
3.2 Future
Based on estimates for the next years, CNXC will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
Based on estimates for the next years, CNXC will show a quite strong growth in Revenue. The Revenue will grow by 12.77% on average per year.
EPS Next Y0.77%
EPS Next 2Y5.3%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue Next Year35.65%
Revenue Next 2Y17.78%
Revenue Next 3Y12.77%
Revenue Next 5YN/A
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.60, the valuation of CNXC can be described as very cheap.
Based on the Price/Earnings ratio, CNXC is valued cheaply inside the industry as 97.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CNXC to the average of the S&P500 Index (30.20), we can say CNXC is valued rather cheaply.
A Price/Forward Earnings ratio of 3.30 indicates a rather cheap valuation of CNXC.
Based on the Price/Forward Earnings ratio, CNXC is valued cheaper than 100.00% of the companies in the same industry.
CNXC is valuated 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 | 3.6 | ||
| Fwd PE | 3.3 |
4.2 Price Multiples
87.95% of the companies in the same industry are more expensive than CNXC, based on the Enterprise Value to EBITDA ratio.
CNXC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNXC is cheaper than 92.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.28 | ||
| EV/EBITDA | 4.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNXC does not grow enough to justify the current Price/Earnings ratio.
CNXC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.7
PEG (5Y)0.08
EPS Next 2Y5.3%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, CNXC has a reasonable but not impressive dividend return.
In the last 3 months the price of CNXC has falen by -36.01%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNXC's Dividend Yield is rather good when compared to the industry average which is at 2.73. CNXC pays more dividend than 95.18% of the companies in the same industry.
CNXC's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
CNXC has been paying a dividend for over 5 years, so it has already some track record.
CNXC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
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 2Y5.3%
EPS Next 3Y7.01%
CONCENTRIX CORP
NASDAQ:CNXC (11/4/2024, 8:01:07 PM)
After market: 41.41 0 (0%)41.41
-0.1 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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 | 3.6 | ||
| Fwd PE | 3.3 | ||
| 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)4.7
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.03% | ||
| PM (TTM) | 2.1% | ||
| GM | 36.07% | ||
| 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| 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)4.74%
EPS 3Y21.35%
EPS 5Y
EPS Q2Q%
EPS Next Y0.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)80.92%
Revenue growth 3Y14.66%
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