CONCENTRIX CORP (CNXC)
US20602D1019 - Common Stock
Overall CNXC gets a fundamental rating of 5 out of 10. We evaluated CNXC against 83 industry peers in the IT Services industry. There are concerns on the financial health of CNXC while its profitability can be described as average. An interesting combination arises when we look at growth and value: CNXC is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year CNXC was profitable.
CNXC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.04%, CNXC is in line with its industry, outperforming 55.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.96%, CNXC is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.79%, CNXC is doing good in the industry, outperforming 65.43% 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 9.40%.
| 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
The Profit Margin of CNXC (2.10%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNXC has grown nicely.
Looking at the Operating Margin, with a value of 8.03%, CNXC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CNXC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 36.07%, CNXC perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXC is destroying value.
The number of shares outstanding for CNXC has been increased compared to 1 year ago.
Compared to 5 years ago, CNXC has more shares outstanding
CNXC has a worse debt/assets ratio than last year.
2.2 Solvency
CNXC has an Altman-Z score of 1.65. This is a bad value and indicates that CNXC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.65, CNXC is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
CNXC has a debt to FCF ratio of 13.32. This is a negative value and a sign of low solvency as CNXC would need 13.32 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.32, CNXC is not doing good in the industry: 60.49% of the companies in the same industry are doing better.
CNXC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CNXC (1.18) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 13.32 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.79
WACC8.55%
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.
With a Current ratio value of 1.57, CNXC perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that CNXC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.57, CNXC perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
| 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%.
Measured over the past years, CNXC shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.40% on average per year.
The Revenue has grown by 80.92% in the past year. This is a very strong growth!
The Revenue has been growing by 23.63% on average over the past years. This is a very strong growth!
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.
CNXC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.77% yearly.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.52, the valuation of CNXC can be described as very cheap.
Based on the Price/Earnings ratio, CNXC is valued cheaper than 98.77% of the companies in the same industry.
CNXC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 3.22, the valuation of CNXC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 100.00% of the companies listed in the same industry.
CNXC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.52 | ||
| Fwd PE | 3.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaply inside the industry as 91.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNXC is valued cheaply inside the industry as 95.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNXC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)0.08
EPS Next 2Y5.3%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
The stock price of CNXC dropped by -36.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CNXC's Dividend Yield is rather good when compared to the industry average which is at 2.74. CNXC pays more dividend than 95.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CNXC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
5.3 Sustainability
CNXC pays out 32.91% of its income as dividend. This is a sustainable payout ratio.
DP32.91%
EPS Next 2Y5.3%
EPS Next 3Y7.01%
CONCENTRIX CORP
NASDAQ:CNXC (12/20/2024, 8:03:29 PM)
After market: 40.42 -0.06 (-0.15%)40.48
+0.1 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.02%
Inst Owner Change2.63%
Ins Owners22.91%
Ins Owner Change-0.04%
Market Cap2.62B
Analysts81.67
Price Target78.37 (93.6%)
Short Float %11.52%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Dividend Growth(5Y)N/A
DP32.91%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0%
PT rev (3m)-12.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.52 | ||
| Fwd PE | 3.22 | ||
| P/S | 0.22 | ||
| P/FCF | 7.12 | ||
| P/OCF | 4.28 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.44 |
EPS(TTM)11.49
EY28.38%
EPS(NY)12.55
Fwd EY31.01%
FCF(TTM)5.69
FCFY14.05%
OCF(TTM)9.45
OCFY23.34%
SpS182.11
BVpS64.31
TBVpS-52.43
PEG (NY)4.59
PEG (5Y)0.08
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.65 |
F-Score7
WACC8.55%
ROIC/WACC0.79
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)4.74%
EPS 3Y21.35%
EPS 5Y43.4%
EPS Q2Q%5.9%
EPS Next Y0.77%
EPS Next 2Y5.3%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue 1Y (TTM)80.92%
Revenue growth 3Y14.66%
Revenue growth 5Y23.63%
Sales Q2Q%46.21%
Revenue Next Year35.65%
Revenue Next 2Y17.78%
Revenue Next 3Y12.77%
Revenue Next 5YN/A
EBIT growth 1Y33.72%
EBIT growth 3Y29.57%
EBIT growth 5Y32.08%
EBIT Next Year71.63%
EBIT Next 3Y24.02%
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%