Cornerstone Building Brands (NYSE:CNR) - Share price, News & Analysis

CNR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	1/6
Dividends	0/6

CNR Stock Overview

Rewards

Price-To-Earnings ratio (4.1x) is below the US market (14.7x)

Earnings grew by 1368.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 67.4% per year for the next 3 years

Interest payments are not well covered by earnings

High level of non-cash earnings

Cornerstone Building Brands Competitors

Hayward Holdings

NYSE:HAYW

US$3.3b

AAON

NasdaqGS:AAON

US$3.0b

Zurn Water Solutions

NYSE:ZWS

US$3.5b

Resideo Technologies

NYSE:REZI

US$2.8b

Price History & Performance

Summary of all time highs, changes and price drops for Cornerstone Building Brands
Historical stock prices
Current Share Price	US$24.61
52 Week High	US$24.61
52 Week Low	US$13.51
Beta	1.73
1 Month Change	0.33%
3 Month Change	1.07%
1 Year Change	38.57%
3 Year Change	318.54%
5 Year Change	44.77%
Change since IPO	49.53%

Shareholder Returns

	CNR	US Building	US Market
7D	0.7%	0.3%	-2.5%
1Y	38.6%	-25.5%	-21.2%

Return vs Industry: CNR exceeded the US Building industry which returned -25.5% over the past year.

Return vs Market: CNR exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is CNR's price volatile compared to industry and market?
CNR volatility
CNR Average Weekly Movement	0.7%
Building Industry Average Movement	6.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: CNR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: CNR's weekly volatility has decreased from 7% to 1% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	22,000	Rose Lee	https://www.cornerstonebuildingbrands.com

Cornerstone Building Brands, Inc., together with its subsidiaries, designs, engineers, manufactures, markets, and installs external building products for the commercial, residential, and repair and remodel markets in the United States, Canada, Mexico, and internationally. The company operates through three segments: Windows, Siding, and Commercial. Its Windows segment provides vinyl, aluminum, wood, and aluminum clad-wood windows and patio doors; and steel, wood, and fiberglass entry doors under the Ply Gem, Simonton, Atrium, American Craftsman, Silver Line, Great Lakes Window, and North Star brands.

Cornerstone Building Brands Fundamentals Summary

How do Cornerstone Building Brands's earnings and revenue compare to its market cap?
CNR fundamental statistics
Market Cap	US$3.13b
Earnings (TTM)	US$761.23m
Revenue (TTM)	US$5.88b

4.1x

P/E Ratio

0.5x

P/S Ratio

Is CNR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNR income statement (TTM)
Revenue	US$5.88b
Cost of Revenue	US$4.61b
Gross Profit	US$1.27b
Other Expenses	US$512.03m
Earnings	US$761.23m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.98
Gross Margin	21.64%
Net Profit Margin	12.94%
Debt/Equity Ratio	227.0%

How did CNR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CNR 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 CNR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CNR. This is calculated by dividing CNR's market cap by their current preferred multiple.
What is CNR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.13b

CNR 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/Revenue	1x
Enterprise Value/EBITDA	8.5x
PEG Ratio	-0.06x

Price to Earnings Ratio vs Peers

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

CNR PE Ratio vs Peers

The above table shows the PE ratio for CNR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	31x
HAYW Hayward Holdings	14.9x	7.3%	US$3.3b
AAON AAON	49x	35.2%	US$3.0b
ZWS Zurn Water Solutions	50.1x	29.6%	US$3.5b
REZI Resideo Technologies	10x	13.4%	US$2.8b
CNR Cornerstone Building Brands	4.1x	-67.4%	US$3.1b

Forward PE

Price-To-Earnings vs Peers: CNR is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (31x).

Price to Earnings Ratio vs Industry

How does CNR's PE Ratio compare vs other companies in the US Building Industry?

Price-To-Earnings vs Industry: CNR is good value based on its Price-To-Earnings Ratio (4.1x) compared to the US Building industry average (16.1x)

Price to Earnings Ratio vs Fair Ratio

What is CNR'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.

CNR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.1x
Fair PE Ratio	3.8x

Price-To-Earnings vs Fair Ratio: CNR is expensive based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (3.8x).

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate CNR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CNR's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: CNR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Cornerstone Building Brands forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-67.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNR's earnings are forecast to decline over the next 3 years (-67.4% per year).

Earnings vs Market: CNR's earnings are forecast to decline over the next 3 years (-67.4% per year).

High Growth Earnings: CNR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CNR's revenue (3.7% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: CNR's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CNR's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Cornerstone Building Brands performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNR has a high level of non-cash earnings.

Growing Profit Margin: CNR's current net profit margins (12.9%) are higher than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: CNR's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: CNR's earnings growth over the past year (1368.7%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: CNR earnings growth over the past year (1368.7%) exceeded the Building industry 27.3%.

Return on Equity

High ROE: Whilst CNR's Return on Equity (56.64%) is outstanding, this metric is skewed due to their high level of debt.

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Financial Health

How is Cornerstone Building Brands's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNR's short term assets ($2.2B) exceed its short term liabilities ($895.3M).

Long Term Liabilities: CNR's short term assets ($2.2B) do not cover its long term liabilities ($3.8B).

Debt to Equity History and Analysis

Debt Level: CNR's net debt to equity ratio (187.1%) is considered high.

Reducing Debt: CNR's debt to equity ratio has increased from 130.5% to 227% over the past 5 years.

Debt Coverage: CNR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CNR's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

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Dividend

What is Cornerstone Building Brands's 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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNR'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 CNR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNR'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 CNR has not reported any payouts.

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Management

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

1.5yrs

Average management tenure

CEO

Rose Lee (56 yo)

0.83

Tenure

US$13,602,909

Compensation

Ms. Rose Lee has been an Independent Director of Honeywell International Inc. since January 2022. She serves as Chief Executive Officer, President and Director at Cornerstone Building Brands, Inc. since Se...

CEO Compensation Analysis

Compensation vs Market: Rose's total compensation ($USD13.60M) is above average for companies of similar size in the US market ($USD6.91M).

Compensation vs Earnings: Insufficient data to compare Rose's compensation with company performance.

Leadership Team

Experienced Management: CNR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: CNR's board of directors are considered experienced (6 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: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/04/02
Annual Earnings	2021/12/31