company background image
CNM

Core & MainNYSE:CNM Stock Report

Last Price

US$23.89

Market Cap

US$6.1b

7D

-2.3%

1Y

n/a

Updated

22 Jan, 2022

Data

Company Financials +
CNM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Core & Main
Historical stock prices
Current Share PriceUS$23.89
52 Week HighUS$32.54
52 Week LowUS$21.45
Beta0
1 Month Change-19.04%
3 Month Change-2.65%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO0.80%

Recent News & Updates

Dec 22

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.

Dec 14
We Think Core & Main's (NYSE:CNM) Healthy Earnings Might Be Conservative

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...

Nov 06

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.

Shareholder Returns

CNMUS Trade DistributorsUS Market
7D-2.3%-6.1%-6.1%
1Yn/a22.1%4.2%

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.

Price Volatility

Is CNM's price volatile compared to industry and market?
CNM volatility
CNM Average Weekly Movement7.3%
Trade Distributors Industry Average Movement5.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
18743,700Steve LeClair https://www.coreandmain.com

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

How do Core & Main's earnings and revenue compare to its market cap?
CNM fundamental statistics
Market CapUS$6.05b
Earnings (TTM)US$51.10m
Revenue (TTM)US$4.59b

118.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNM income statement (TTM)
RevenueUS$4.59b
Cost of RevenueUS$3.43b
Gross ProfitUS$1.16b
ExpensesUS$1.11b
EarningsUS$51.10m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin25.21%
Net Profit Margin1.11%
Debt/Equity Ratio83.8%

How did CNM perform over the long term?

See historical performance and comparison

Valuation

Is Core & Main undervalued compared to its fair value and its price relative to the market?

2.4%

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).


Future Growth

How is Core & Main forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

33.6%

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%).


Past Performance

How has Core & Main performed over the past 5 years?

17.0%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Core & Main current dividend yield, its reliability and sustainability?

1.48%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Steve LeClair (52 yo)

4.33yrs

Tenure

US$1,462,342

Compensation

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.


Leadership Team

Experienced Management: CNM's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: CNM's board of directors are considered experienced (4.4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: CNM only recently listed within the past 12 months.


Top Shareholders

Company Information

Core & Main, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Core & Main, Inc.
  • 1830 Craig Park Court
  • Saint Louis
  • Missouri
  • 63146
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:08
End of Day Share Price2022/01/21 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


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.