CONCENTRIX CORP (CNXC) Stock Fundamental Analysis
NASDAQ:CNXC - Nasdaq - US20602D1019 - Common Stock - Currency: USD
Taking everything into account, CNXC scores 5 out of 10 in our fundamental rating. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
CNXC had positive earnings in the past year.
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
CNXC's Return On Assets of 2.43% is in line compared to the rest of the industry. CNXC outperforms 56.41% of its industry peers.
The Return On Equity of CNXC (7.22%) is better than 61.54% of its industry peers.
The Return On Invested Capital of CNXC (7.50%) is better than 67.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNXC is below the industry average of 10.27%.
The last Return On Invested Capital (7.50%) for CNXC is above the 3 year average (7.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 7.22% | ||
| ROIC | 7.5% |
ROA(3y)3.63%
ROA(5y)4.4%
ROE(3y)9.77%
ROE(5y)10.34%
ROIC(3y)7.17%
ROIC(5y)7.81%
1.3 Margins
Looking at the Profit Margin, with a value of 2.43%, CNXC is in line with its industry, outperforming 56.41% of the companies in the same industry.
In the last couple of years the Profit Margin of CNXC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.75%, CNXC is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
In the last couple of years the Operating Margin of CNXC has remained more or less at the same level.
CNXC's Gross Margin of 35.81% is in line compared to the rest of the industry. CNXC outperforms 56.41% of its industry peers.
CNXC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.75% | ||
| PM (TTM) | 2.43% | ||
| GM | 35.81% |
OM growth 3Y-7.9%
OM growth 5Y0.21%
PM growth 3Y-29.45%
PM growth 5Y0.19%
GM growth 3Y0.57%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXC is destroying value.
Compared to 1 year ago, CNXC has less shares outstanding
CNXC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CNXC has remained at the same level compared to a year ago.
2.2 Solvency
CNXC has an Altman-Z score of 1.70. This is a bad value and indicates that CNXC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CNXC (1.70) is worse than 64.10% of its industry peers.
CNXC has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as CNXC would need 11.05 years to pay back of all of its debts.
CNXC's Debt to FCF ratio of 11.05 is on the low side compared to the rest of the industry. CNXC is outperformed by 62.82% of its industry peers.
CNXC has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
CNXC's Debt to Equity ratio of 1.17 is on the low side compared to the rest of the industry. CNXC is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.84
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.42 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC has a Current ratio of 1.42. This is comparable to the rest of the industry: CNXC outperforms 43.59% of its industry peers.
A Quick Ratio of 1.42 indicates that CNXC should not have too much problems paying its short term obligations.
CNXC has a Quick ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.62% over the past year.
Measured over the past years, CNXC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.35% on average per year.
Looking at the last year, CNXC shows a very strong growth in Revenue. The Revenue has grown by 68.97%.
The Revenue has been growing by 15.36% on average over the past years. This is quite good.
EPS 1Y (TTM)0.62%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-2.98%
Revenue 1Y (TTM)68.97%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%9.74%
3.2 Future
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
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 Y2%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y0.69%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
CNXC is valuated cheaply with a Price/Earnings ratio of 3.99.
Compared to the rest of the industry, the Price/Earnings ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 98.72% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.36. CNXC is valued rather cheaply when compared to this.
CNXC is valuated cheaply with a Price/Forward Earnings ratio of 3.92.
Based on the Price/Forward Earnings ratio, CNXC is valued cheaply inside the industry as 98.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, CNXC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.99 | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNXC is valued cheaper than 94.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNXC indicates a rather cheap valuation: CNXC is cheaper than 94.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 4.53 |
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.
The decent profitability rating of CNXC may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)0.39
EPS Next 2Y5.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNXC has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.94, CNXC pays a better dividend. On top of this CNXC pays more dividend than 96.15% of the companies listed in the same industry.
CNXC's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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
28.72% of the earnings are spent on dividend by CNXC. This is a low number and sustainable payout ratio.
DP28.72%
EPS Next 2Y5.56%
EPS Next 3YN/A
NASDAQ:CNXC (2/27/2025, 3:25:09 PM)
45.5
+0.06 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change5.47%
Ins Owners2.95%
Ins Owner Change0.77%
Market Cap2.93B
Analysts81.67
Price Target68.17 (49.82%)
Short Float %14.51%
Short Ratio10.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.29
Dividend Growth(5Y)N/A
DP28.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.18%
Min EPS beat(2)-3.89%
Max EPS beat(2)6.25%
EPS beat(4)2
Avg EPS beat(4)0.12%
Min EPS beat(4)-3.89%
Max EPS beat(4)6.25%
EPS beat(8)3
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)-1.31%
EPS beat(16)9
Avg EPS beat(16)0.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-1.75%
Max Revenue beat(4)-0.6%
Revenue beat(8)0
Avg Revenue beat(8)-1.76%
Revenue beat(12)0
Avg Revenue beat(12)-2.1%
Revenue beat(16)1
Avg Revenue beat(16)-1.67%
PT rev (1m)-9.07%
PT rev (3m)-13.02%
EPS NQ rev (1m)-13.36%
EPS NQ rev (3m)-15.15%
EPS NY rev (1m)-5.42%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)-4.06%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.99 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.24 | ||
| P/FCF | 6.83 | ||
| P/OCF | 4.39 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.53 |
EPS(TTM)11.39
EY25.03%
EPS(NY)11.62
Fwd EY25.53%
FCF(TTM)6.66
FCFY14.63%
OCF(TTM)10.36
OCFY22.78%
SpS186.67
BVpS62.73
TBVpS-50.22
PEG (NY)2
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 7.22% | ||
| ROCE | 9.32% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 30.2% | ||
| OM | 7.75% | ||
| PM (TTM) | 2.43% | ||
| GM | 35.81% | ||
| FCFM | 3.57% |
ROA(3y)3.63%
ROA(5y)4.4%
ROE(3y)9.77%
ROE(5y)10.34%
ROIC(3y)7.17%
ROIC(5y)7.81%
ROICexc(3y)7.36%
ROICexc(5y)8.08%
ROICexgc(3y)28.93%
ROICexgc(5y)27.59%
ROCE(3y)8.91%
ROCE(5y)9.71%
ROICexcg growth 3Y-8.2%
ROICexcg growth 5Y-1.87%
ROICexc growth 3Y-18.71%
ROICexc growth 5Y-3.98%
OM growth 3Y-7.9%
OM growth 5Y0.21%
PM growth 3Y-29.45%
PM growth 5Y0.19%
GM growth 3Y0.57%
GM growth 5Y-0.7%
F-Score7
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 11.05 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 33.83% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 3.3 | ||
| Cash Conversion | 40.76% | ||
| Profit Quality | 146.92% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.7 |
F-Score7
WACC8.91%
ROIC/WACC0.84
Cap/Depr(3y)41.85%
Cap/Depr(5y)48.26%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.71%
Profit Quality(3y)148.84%
Profit Quality(5y)148.38%
High Growth Momentum
Growth
EPS 1Y (TTM)0.62%
EPS 3Y3.95%
EPS 5Y10.35%
EPS Q2Q%-2.98%
EPS Next Y2%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)68.97%
Revenue growth 3Y19.85%
Revenue growth 5Y15.36%
Sales Q2Q%9.74%
Revenue Next Year-0.65%
Revenue Next 2Y0.69%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
EBIT growth 1Y27.18%
EBIT growth 3Y10.38%
EBIT growth 5Y15.6%
EBIT Next Year30.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.82%
FCF growth 3Y5.5%
FCF growth 5Y4.83%
OCF growth 1Y-1.55%
OCF growth 3Y9.09%
OCF growth 5Y8.22%