NasdaqGS:CORE

Stock Analysis Report

Core-Mark Holding Company

Executive Summary

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry.

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Core-Mark Holding Company's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

CORE

3.3%

US Retail Distributors

0.4%

US Market


1 Year Return

-23.6%

CORE

14.2%

US Retail Distributors

6.9%

US Market

Return vs Industry: CORE underperformed the US Retail Distributors industry which returned 14.2% over the past year.

Return vs Market: CORE underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

COREIndustryMarket
7 Day0%3.3%0.4%
30 Day-7.2%3.7%-1.1%
90 Day-23.4%8.1%-0.5%
1 Year-22.6%-23.6%16.1%14.2%9.3%6.9%
3 Year-12.0%-15.5%6.9%2.9%45.8%36.4%
5 Year10.6%4.5%43.0%31.9%62.9%45.1%

Price Volatility Vs. Market

How volatile is Core-Mark Holding Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Core-Mark Holding Company undervalued compared to its fair value and its price relative to the market?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CORE ($28.85) is trading below our estimate of fair value ($41.52)

Significantly Below Fair Value: CORE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CORE is poor value based on its PE Ratio (24.2x) compared to the Retail Distributors industry average (23.7x).

PE vs Market: CORE is poor value based on its PE Ratio (24.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CORE is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CORE is good value based on its PB Ratio (2.3x) compared to the US Retail Distributors industry average (2.6x).


Next Steps

Future Growth

How is Core-Mark Holding Company forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CORE's forecast earnings growth (12.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CORE's earnings (12.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CORE's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CORE's revenue (4.4% 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 CORE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Core-Mark Holding Company performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CORE's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: CORE's earnings growth over the past year (60.2%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: CORE earnings growth over the past year (60.2%) exceeded the Retail Distributors industry 7%.


Return on Equity

High ROE: CORE's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: CORE's Return on Assets is below or equal to the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: CORE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Core-Mark Holding Company's financial position?


Financial Position Analysis

Short Term Liabilities: CORE's short term assets ($1.3B) exceeds its short term liabilities ($751.3M)

Long Term Liabilities: CORE's short term assets (1.3B) exceeds its long term liabilities (605.7M)


Debt to Equity History and Analysis

Debt Level: CORE's debt to equity ratio (63.8%) is considered high

Reducing Debt: CORE's debt to equity ratio has increased from 6.4% to 63.8% over the past 5 years.

Debt Coverage: CORE's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: CORE's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: CORE's debt is covered by short term assets (assets are 3.614740x debt).


Next Steps

Dividend

What is Core-Mark Holding Company's current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CORE's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CORE's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, CORE has been paying a dividend for less than 10 years.

Growing Dividend: CORE has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), CORE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CORE's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

What is the CEO of Core-Mark Holding Company's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Scott McPherson (49yo)

1.3yrs

Tenure

US$2,371,227

Compensation

Mr. McPherson has been President and Chief Operating Officer at Core-Mark International Inc since October 1, 2017. Mr. McPherson served as Senior Vice President of Business Operations & Development at Core ...


CEO Compensation Analysis

Compensation vs. Market: Scott has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.2yrs

Average Tenure

49yo

Average Age

Experienced Management: CORE's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

14.2yrs

Average Tenure

62yo

Average Age

Experienced Board: CORE's board of directors are seasoned and experienced ( 14.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$337,91510 May 19
Harvey Tepner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,601
Max PriceUS$40.00
SellUS$38,25004 Apr 19
Harvey Tepner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$38.25
SellUS$324,90020 Mar 19
Eric Rolheiser
EntityIndividual
Role
Unit President
Senior VP of Northern Divisions & President of Canada
Shares8,550
Max PriceUS$38.00
SellUS$287,02520 Mar 19
William Stein
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Enterprise Growth
Shares7,500
Max PriceUS$38.27
SellUS$109,95019 Mar 19
Matthew Tachouet
EntityIndividual
Shares3,000
Max PriceUS$36.65
SellUS$93,93119 Mar 19
Christopher Miller
EntityIndividual
Role
Chief Financial Officer
Principal Accounting Officer
Shares2,500
Max PriceUS$37.57
SellUS$66,25408 Mar 19
Christopher Miller
EntityIndividual
Role
Chief Financial Officer
Principal Accounting Officer
Shares2,678
Max PriceUS$24.74
SellUS$178,61208 Nov 18
Christopher Hobson
EntityIndividual
Role
Senior Key Executive
Senior Vice President - Eastern Divisions
Shares5,812
Max PriceUS$30.73

Ownership Breakdown


Management Team

  • Gerald Bolduc (73yo)

    Chief Information Officer and Vice President of Information Technology

    • Tenure: 0yrs
  • Scott McPherson (49yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$2.37m
  • Chris Miller (58yo)

    Principal Accounting Officer

    • Tenure: 3.4yrs
    • Compensation: US$1.36m
  • Chris Murray (53yo)

    Senior Vice President of Marketing

    • Tenure: 0.4yrs
    • Compensation: US$598.90k
  • Eric Rolheiser (48yo)

    Senior VP of Northern Divisions & President of Canada

    • Tenure: 10.8yrs
  • Chris Hobson (50yo)

    Senior Vice President - Eastern Divisions

    • Tenure: 2yrs
    • Compensation: US$1.47m
  • Bill Stein (49yo)

    Senior Vice President of Enterprise Growth

    • Tenure: 6.8yrs
    • Compensation: US$1.16m
  • Jordana Kammerud (42yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.06m
  • Alan Thomas (43yo)

    Senior Vice President - Western Divisions

    • Tenure: 0.8yrs
  • David Lawrence

    Vice President of Treasury & Investor Relations

    • Tenure: 0yrs

Board Members

  • Rob Gross (60yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$174.98k
  • Stu Booth (67yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: US$189.98k
  • Rob Allen (69yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$167.48k
  • Randy Thornton (72yo)

    Chairman of the Board

    • Tenure: 15.2yrs
    • Compensation: US$219.98k
  • Gary Colter (73yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$167.48k
  • Harvey Tepner (62yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$159.98k
  • Rocky Dewbre (54yo)

    Director

    • Tenure: 0.8yrs
  • Scott McPherson (49yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$2.37m
  • Laura Flanagan (51yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$159.98k

Company Information

Core-Mark Holding Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Core-Mark Holding Company, Inc.
  • Ticker: CORE
  • Exchange: NasdaqGS
  • Founded: 1888
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$1.324b
  • Shares outstanding: 45.88m
  • Website: https://www.core-mark.com

Number of Employees


Location

  • Core-Mark Holding Company, Inc.
  • 1500 Solana Boulevard
  • Suite 3400
  • Westlake
  • Texas
  • 76262
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CORENasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDApr 2005
C6MDB (Deutsche Boerse AG)YesNew Common StockDEEURApr 2005

Biography

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes food products, including fast food, candies, snacks, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.