NYSE:CNR

Stock Analysis Report

Cornerstone Building Brands

Executive Summary

Cornerstone Building Brands, Inc., together with its subsidiaries, designs, engineers, manufactures, and markets external building products for the commercial, residential, and repair and remodel construction markets in North America.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Cornerstone Building Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CNR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.1%

CNR

-6.1%

US Building

-2.0%

US Market


1 Year Return

-37.2%

CNR

-24.6%

US Building

-15.1%

US Market

Return vs Industry: CNR underperformed the US Building industry which returned -24.6% over the past year.

Return vs Market: CNR underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

CNRIndustryMarket
7 Day-20.1%-6.1%-2.0%
30 Day-46.1%-35.1%-19.7%
90 Day-48.3%-35.0%-23.2%
1 Year-37.2%-37.2%-23.4%-24.6%-13.4%-15.1%
3 Year-74.9%-74.9%-21.0%-24.6%10.9%3.7%
5 Year-75.0%-75.0%-6.6%-18.6%28.4%14.4%

Price Volatility Vs. Market

How volatile is Cornerstone Building Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cornerstone Building Brands undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNR ($4.17) is trading below our estimate of fair value ($10.23)

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


Price To Earnings Ratio

PE vs Industry: CNR is unprofitable, so we can't compare its PE Ratio to the Building industry average.

PE vs Market: CNR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CNR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CNR is good value based on its PB Ratio (0.6x) compared to the US Building industry average (1.1x).


Next Steps

Future Growth

How is Cornerstone Building Brands forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

93.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CNR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CNR's is expected to become profitable in the next 3 years.

Revenue vs Market: CNR's revenue is expected to decline over the next 3 years (-0.08% per year).

High Growth Revenue: CNR's revenue is forecast to decline over the next 3 years (-0.08% 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


Next Steps

Past Performance

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

-36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNR is currently unprofitable.

Growing Profit Margin: CNR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CNR is unprofitable, and losses have increased over the past 5 years at a rate of -36.9% per year.

Accelerating Growth: Unable to compare CNR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNR is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (-15.9%).


Return on Equity

High ROE: CNR has a negative Return on Equity (-1.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cornerstone Building Brands's financial position?


Financial Position Analysis

Short Term Liabilities: CNR's short term assets ($1.2B) exceed its short term liabilities ($648.5M).

Long Term Liabilities: CNR's short term assets ($1.2B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: CNR's debt to equity ratio (343.5%) is considered high.

Reducing Debt: CNR's debt to equity ratio has increased from 161.6% to 343.5% over the past 5 years.


Balance Sheet

Inventory Level: CNR has a high level of physical assets or inventory.

Debt Coverage by Assets: CNR's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CNR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CNR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Cornerstone Building Brands's current dividend yield, its reliability and sustainability?


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 payouts.

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


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 CNR'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?

1.4yrs

Average management tenure


CEO

Jim Metcalf (61yo)

1.42s

Tenure

US$5,628,524

Compensation

Mr. James Shane Metcalf, also known as Jim, serves as Chairman of the Board of Cornerstone Building Brands, Inc. (Formerly known as NCI Building Systems, Inc.) since January 1, 2018 and has been its Chief  ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD5.63M) is above average for companies of similar size in the US market ($USD2.25M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Metcalf
Chairman of the Board & CEO1.42yrsUS$5.63m0.56% $2.9m
Todd Moore
General Counsel2.92yrsUS$1.23m0.10% $523.7k
Katy Theroux
Executive VP & Chief Human Resources Officer5.58yrsUS$2.13m0.21% $1.1m
John Buckley
President of Siding Business Unit - Residential1.42yrsUS$3.48m0.058% $304.3k
Arthur Steinhafel
President of U.S. Windows Business Unit - Residential1.42yrsUS$3.48m0.050% $262.7k
Jeffery Lee
Executive VP & CFO0.83yrno data0.29% $1.5m
Brian Boyle
Senior VP1.42yrsno data0.047% $245.5k
K. Matthews
Vice President of Investor Relationsno datano datano data
Susan Selle
Chief Marketing Officer1.42yrsno datano data
Preston Bowen
President of Building Envelope Solutions3.58yrsno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: CNR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Metcalf
Chairman of the Board & CEO1.42yrsUS$5.63m0.56% $2.9m
Kathleen Affeldt
Independent Director10.42yrsUS$81.77k0.030% $159.8k
George Martinez
Independent Director17.08yrsUS$79.86k0.062% $324.4k
Gary Forbes
Independent Director28.33yrsUS$81.77k0.10% $541.1k
Nathan Sleeper
Independent Director10.5yrsUS$79.44kno data
John Krenicki
Lead Director1.42yrsUS$10.83kno data
John Holland
Independent Director10.42yrsUS$80.69k0.023% $123.1k
Jonathan Zrebiec
Director10.42yrsUS$77.69kno data
George Ball
Independent Director6.17yrsUS$81.61k0.22% $1.2m
Timothy O'Brien
Independent Director1.42yrsUS$101.19kno data

10.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CNR's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.5%.


Top Shareholders

Company Information

Cornerstone Building Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cornerstone Building Brands, Inc.
  • Ticker: CNR
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$525.725m
  • Shares outstanding: 126.07m
  • Website: https://www.cornerstonebuildingbrands.com

Number of Employees


Location

  • Cornerstone Building Brands, Inc.
  • 5020 Weston Parkway
  • Suite 400
  • Cary
  • North Carolina
  • 27513
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNRNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1992
NCUNDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1992

Biography

Cornerstone Building Brands, Inc., together with its subsidiaries, designs, engineers, manufactures, and markets external building products for the commercial, residential, and repair and remodel construction markets in North America. The company operates through three segments: Commercial, Siding, and Windows. The Commercial segment manufactures and distributes various metal products for the nonresidential construction markets under various brand names through a network of plants and distribution centers. It also provides metal coil coating services for commercial and construction applications. The Siding segment offers vinyl siding and skirting products, steel siding products, vinyl and aluminum soffit products, aluminum trim coils, aluminum gutter coils, aluminum gutters, aluminum and steel roofing accessories, cellular PVC trims and moldings, J-channels, wide crown moldings, window and door trims, F-channels, H-molds, fascia, undersill trims, outside/inside corner posts, rain removal systems, and injection molded designer accents, such as shakes; shingles; scallops; shutters; vents and mounts; vinyl fence; vinyl railing; and stone veneer. The Windows segment provides vinyl, aluminum-clad vinyl, aluminum, wood, and clad-wood windows and patio doors; and steel, wood, and fiberglass entry doors. The company was formerly known as NCI Building Systems, Inc. and changed its name to Cornerstone Building Brands, Inc. in May 2019. Cornerstone Building Brands, Inc. was founded in 1984 and is headquartered in Cary, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 05:00
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.