Concentrix Corporation
Concentrix Corporation Fundamental Analysis
Concentrix Corporation (CNXC) shows moderate financial fundamentals with a PE ratio of -1.59, profit margin of -13.02%, and ROE of -33.22%. The company generates $9.9B in annual revenue with strong year-over-year growth of 35.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 1.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CNXC's fundamental strength across five key dimensions:
Efficiency Score
WeakCNXC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNXC trades at attractive valuation levels.
Growth Score
ModerateCNXC shows steady but slowing expansion.
Financial Health Score
ModerateCNXC shows balanced financial health with some risks.
Profitability Score
WeakCNXC struggles to sustain strong margins.
Key Financial Metrics
Is CNXC Expensive or Cheap?
P/E Ratio
CNXC trades at -1.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CNXC's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Concentrix Corporation at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.12 times EBITDA. This is generally considered low.
How Well Does CNXC Make Money?
Net Profit Margin
For every $100 in sales, Concentrix Corporation keeps $-13.02 as profit after all expenses.
Operating Margin
Core operations generate 6.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-33.22 in profit for every $100 of shareholder equity.
ROA
Concentrix Corporation generates $-11.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Concentrix Corporation generates limited operating cash flow of $809.39M, signaling weaker underlying cash strength.
Free Cash Flow
Concentrix Corporation produces free cash flow of $574.19M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.22 in free cash annually.
FCF Yield
CNXC converts 28.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.33
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CNXC Stacks Against Its Sector Peers
| Metric | CNXC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.59 | 35.19 | Better (Cheaper) |
| ROE | -33.22% | 1155.00% | Weak |
| Net Margin | -13.02% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.69 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.40 | 4.71 | Neutral |
| ROA | -11.88% | -314918.00% (disorted) | Weak |
CNXC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Concentrix Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.26%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
70.28%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
17.87%
Industry Style: Growth, Innovation, High Beta
High Growth