Core & Main, Inc.
Core & Main, Inc. Fundamental Analysis
Core & Main, Inc. (CNM) shows moderate financial fundamentals with a PE ratio of 20.61, profit margin of 5.60%, and ROE of 23.82%. The company generates $7.7B in annual revenue with strong year-over-year growth of 11.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CNM's fundamental strength across five key dimensions:
Efficiency Score
WeakCNM struggles to generate sufficient returns from assets.
Valuation Score
ModerateCNM shows balanced valuation metrics.
Growth Score
ModerateCNM shows steady but slowing expansion.
Financial Health Score
ModerateCNM shows balanced financial health with some risks.
Profitability Score
ModerateCNM maintains healthy but balanced margins.
Key Financial Metrics
Is CNM Expensive or Cheap?
P/E Ratio
CNM trades at 20.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CNM's PEG of 47.81 indicates potential overvaluation.
Price to Book
The market values Core & Main, Inc. at 4.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.11 times EBITDA. This is generally considered low.
How Well Does CNM Make Money?
Net Profit Margin
For every $100 in sales, Core & Main, Inc. keeps $5.60 as profit after all expenses.
Operating Margin
Core operations generate 9.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.82 in profit for every $100 of shareholder equity.
ROA
Core & Main, Inc. generates $6.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Core & Main, Inc. generates limited operating cash flow of $612.42M, signaling weaker underlying cash strength.
Free Cash Flow
Core & Main, Inc. produces free cash flow of $570.73M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.02 in free cash annually.
FCF Yield
CNM converts 6.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
47.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How CNM Stacks Against Its Sector Peers
| Metric | CNM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.61 | 24.98 | Better (Cheaper) |
| ROE | 23.82% | 1284.00% | Weak |
| Net Margin | 5.60% | -45683.00% (disorted) | Weak |
| Debt/Equity | 1.23 | 0.79 | Weak (High Leverage) |
| Current Ratio | 2.26 | 10.67 | Strong Liquidity |
| ROA | 6.90% | -1542352.00% (disorted) | Weak |
CNM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Core & Main, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
175.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1334.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
302.08%
Industry Style: Cyclical, Value, Infrastructure
High Growth