CNM Stock Overview
Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.89|
|52 Week High||US$32.54|
|52 Week Low||US$21.45|
|1 Month Change||-19.04%|
|3 Month Change||-2.65%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||0.80%|
Recent News & Updates
Core & Main: Strong Quarter But Pullback Over Commodity Price Concerns May Be Buy Opportunity
My original investment thesis continues to hold up well due to strong fundamentals in the infrastructure and construction market as well as management's sound strategy and execution. Core & Main reported very strong 3Q2021 earnings which were driven by unsustainable PVC commodity price inflation. Stock price has drifted down, suggesting the risk may be factored into stock price. Valuation based on "normalized" commodity prices is still not cheap, but the strong volume growth momentum and pullback in stock price may create an opportunity to add to positions.
We Think Core & Main's (NYSE:CNM) Healthy Earnings Might Be Conservative
Core & Main, Inc.'s ( NYSE:CNM ) recent earnings report didn't offer any surprises, with the shares unchanged over the...
Core & Main: Investing In Growing Industry Consolidator Alongside Proven Private Equity Firm
Core & Main is one of two national players in the waterworks and fire protection product distribution oligopoly. Investing alongside CD&R, a leading private equity firm with extensive experience in building materials and distribution businesses. Drivers of shareholder value include the tailwinds of infrastructure spend, strategy to consolidate a fragmented sector, and implementation of operational best practices. Core & Main is a lesser-known brand name and relatively under followed by investors, which creates the opportunity to accumulate shares before others jump on the bandwagon. Main concerns are the current volatility in input prices and full valuation. I may initiate a toehold position and add to my position as the company demonstrates more progress.
|CNM||US Trade Distributors||US Market|
Return vs Industry: Insufficient data to determine how CNM performed against the US Trade Distributors industry.
Return vs Market: Insufficient data to determine how CNM performed against the US Market.
|CNM Average Weekly Movement||7.3%|
|Trade Distributors Industry Average Movement||5.9%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: CNM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CNM's weekly volatility (7%) has been stable over the past year.
About the Company
Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products include castings, clamps, couplings and tapping sleeves, drainage products, fittings, meters, pipe and pipe accessories, pumps and parts, restraints, safety and paint, service materials, tools, and valves and hydrants, as well as irrigation and other products; and fire protection solutions comprising fire protection pipes, sprinkler heads, and other devices, as well as fabrication services. The company also provides metering and technology solutions, which cover system analysis, design and installation, project financing, automatic meter reading/advancing metering infrastructure system maintenance and services, and others; treatment plants related solutions, such as design build, project management, and building information modeling; storm drain solutions comprising structures, specialty products, and underground detention/retention; fusible piping solutions, such as fittings and fabrication, equipment rental and sales, and services and repairs; and pumping equipment.
Core & Main Fundamentals Summary
|CNM fundamental statistics|
Is CNM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CNM income statement (TTM)|
|Cost of Revenue||US$3.43b|
Last Reported Earnings
Oct 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.20|
|Net Profit Margin||1.11%|
How did CNM perform over the long term?See historical performance and comparison
Is Core & Main undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNM ($23.89) is trading below our estimate of fair value ($24.47)
Significantly Below Fair Value: CNM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CNM is poor value based on its PE Ratio (118.5x) compared to the US Trade Distributors industry average (19.3x).
PE vs Market: CNM is poor value based on its PE Ratio (118.5x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: CNM is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: CNM is overvalued based on its PB Ratio (4.9x) compared to the US Trade Distributors industry average (2.3x).
How is Core & Main forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNM's forecast earnings growth (33.6% per year) is above the savings rate (2%).
Earnings vs Market: CNM's earnings (33.6% per year) are forecast to grow faster than the US market (12.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CNM's revenue (4.8% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: CNM's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNM's Return on Equity is forecast to be low in 3 years time (17.3%).
How has Core & Main performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: CNM has a large one-off loss of $56.8M impacting its October 31 2021 financial results.
Growing Profit Margin: CNM's current net profit margins (1.1%) are lower than last year (1.2%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if CNM's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare CNM's past year earnings growth to its 5-year average.
Earnings vs Industry: CNM earnings growth over the past year (17%) underperformed the Trade Distributors industry 82.1%.
Return on Equity
High ROE: CNM's Return on Equity (8.8%) is considered low.
How is Core & Main's financial position?
Financial Position Analysis
Short Term Liabilities: CNM's short term assets ($1.7B) exceed its short term liabilities ($842.6M).
Long Term Liabilities: CNM's short term assets ($1.7B) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: CNM's net debt to equity ratio (83.5%) is considered high.
Reducing Debt: Insufficient data to determine if CNM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CNM's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: CNM's interest payments on its debt are not well covered by EBIT (2.9x coverage).
What is Core & Main current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CNM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CNM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CNM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CNM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CNM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve LeClair (52 yo)
Mr. Stephen O. LeClair, also known as Steve, has been the Chief Executive Officer and Director of Core & Main, Inc. since September 2017. Mr. LeClair served as the President of Core & Main LP since August...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD1.46M) is below average for companies of similar size in the US market ($USD6.48M).
Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.
Experienced Management: CNM's management team is considered experienced (4 years average tenure).
Experienced Board: CNM's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: CNM only recently listed within the past 12 months.
Core & Main, Inc.'s employee growth, exchange listings and data sources
- Name: Core & Main, Inc.
- Ticker: CNM
- Exchange: NYSE
- Founded: 1874
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Implied Market Cap: US$6.053b
- Market Cap: US$4.002b
- Shares outstanding: 253.38m
- Website: https://www.coreandmain.com
Number of Employees
- Core & Main, Inc.
- 1830 Craig Park Court
- Saint Louis
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/22 23:08|
|End of Day Share Price||2022/01/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.