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CNM

Core & Main NYSE:CNM Stock Report

Last Price

US$22.10

Market Cap

US$5.4b

7D

-0.5%

1Y

n/a

Updated

03 Jul, 2022

Data

Company Financials +
CNM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
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.

Core & Main Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Core & Main
Historical stock prices
Current Share PriceUS$22.10
52 Week HighUS$32.54
52 Week LowUS$20.00
Beta0
1 Month Change-9.57%
3 Month Change-10.85%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-6.75%

Recent News & Updates

Jun 20
Core & Main, Inc.'s (NYSE:CNM) Intrinsic Value Is Potentially 68% Above Its Share Price

Core & Main, Inc.'s (NYSE:CNM) Intrinsic Value Is Potentially 68% Above Its Share Price

In this article we are going to estimate the intrinsic value of Core & Main, Inc. ( NYSE:CNM ) by taking the forecast...

Shareholder Returns

CNMUS Trade DistributorsUS Market
7D-0.5%-1.1%-2.5%
1Yn/a-10.0%-21.2%

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 Movement6.8%
Trade Distributors Industry Average Movement7.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

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
18744,100Steve 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 pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, and other related products; fire protection products, including fire protection pipes, sprinkler heads and other devices, fire suppression systems, and related accessories, as well as fabrication services; and meter products, such as smart meter products, installation, software and other services. The company’s specialty products and services are used in the maintenance, repair, replacement, and construction of water and fire protection infrastructure.

Core & Main Fundamentals Summary

How do Core & Main's earnings and revenue compare to its market cap?
CNM fundamental statistics
Market CapUS$5.43b
Earnings (TTM)US$149.00m
Revenue (TTM)US$5.55b

24.9x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNM income statement (TTM)
RevenueUS$5.55b
Cost of RevenueUS$4.10b
Gross ProfitUS$1.44b
Other ExpensesUS$1.30b
EarningsUS$149.00m

Last Reported Earnings

May 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.89
Gross Margin26.03%
Net Profit Margin2.69%
Debt/Equity Ratio76.0%

How did CNM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CNM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNM?

Other financial metrics that can be useful for relative valuation.

CNM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA8.6x
PEG Ratio6.8x

Price to Earnings Ratio vs Peers

How does CNM's PE Ratio compare to its peers?

CNM PE Ratio vs Peers
The above table shows the PE ratio for CNM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.9x
SITE SiteOne Landscape Supply
20.5x9.0%US$5.4b
WCC WESCO International
10.1x9.2%US$5.4b
UNVR Univar Solutions
7.3x-3.8%US$4.2b
MSM MSC Industrial Direct
13.9x7.5%US$4.2b
CNM Core & Main
24.9x3.7%US$5.4b

Price-To-Earnings vs Peers: CNM is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (12.9x).


Price to Earnings Ratio vs Industry

How does CNM's PE Ratio compare vs other companies in the US Trade Distributors Industry?

Price-To-Earnings vs Industry: CNM is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the US Trade Distributors industry average (12.1x)


Price to Earnings Ratio vs Fair Ratio

What is CNM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.9x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: CNM is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (19x).


Share Price vs Fair Value

What is the Fair Price of CNM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNM ($22.1) is trading below our estimate of fair value ($36.89)

Significantly Below Fair Value: CNM is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: CNM is poor value based on its PEG Ratio (6.8x)


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Future Growth

How is Core & Main forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNM's forecast earnings growth (3.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CNM's earnings (3.7% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: CNM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNM's revenue (2.4% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: CNM's revenue (2.4% 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 (16.1%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


37.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNM has high quality earnings.

Growing Profit Margin: CNM's current net profit margins (2.7%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: CNM's earnings have grown significantly by 37.8% per year over the past 5 years.

Accelerating Growth: CNM's earnings growth over the past year (122.8%) exceeds its 5-year average (37.8% per year).

Earnings vs Industry: CNM earnings growth over the past year (122.8%) exceeded the Trade Distributors industry 80.4%.


Return on Equity

High ROE: CNM's Return on Equity (16.7%) is considered low.


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Financial Health

How is Core & Main's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNM's short term assets ($2.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: CNM's short term assets ($2.2B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: CNM's net debt to equity ratio (76%) 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 well covered by EBIT (7.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.76%

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CNM has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure


CEO

Steve LeClair (53 yo)

1

Tenure

US$2,292,431

Compensation

Mr. Stephen O. LeClair, also known as Steve, has been the Chief Executive Officer and Director of Core & Main, Inc. since July 2021. He served as a Director of Core & Main Holdings, LP since September 2017...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.29M) is below average for companies of similar size in the US market ($USD8.35M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CNM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNM's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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$5.434b
  • Market Cap: US$3.711b
  • Shares outstanding: 245.89m
  • 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 Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/05/01
Annual Earnings2022/01/30


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.