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CNXC

ConcentrixNasdaqGS:CNXC Stock Report

Market Cap

US$9.2b

7D

-4.0%

1Y

n/a

Updated

27 Oct, 2021

Data

Company Financials +
CNXC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends0/6

CNXC Overview

Concentrix Corporation provides technology-infused customer experience solutions worldwide.

Concentrix Competitors

Fiserv

NasdaqGS:FISV

US$65.4b

TELUS International (Cda)

NYSE:TIXT

US$10.1b

Genpact

NYSE:G

US$9.3b

TaskUs

NasdaqGS:TASK

US$5.6b

Price History & Performance

Summary of all time highs, changes and price drops for Concentrix
Historical stock prices
Current Share PriceUS$176.86
52 Week HighUS$80.00
52 Week LowUS$187.22
Beta0
1 Month Change5.66%
3 Month Change9.97%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO121.08%

Recent News & Updates

Sep 29
A Look At The Fair Value Of Concentrix Corporation (NASDAQ:CNXC)

A Look At The Fair Value Of Concentrix Corporation (NASDAQ:CNXC)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Concentrix Corporation...

Shareholder Returns

CNXCUS ITUS Market
7D-4.0%-1.9%0.9%
1Yn/a25.3%33.4%

Return vs Industry: Insufficient data to determine how CNXC performed against the US IT industry.

Return vs Market: Insufficient data to determine how CNXC performed against the US Market.

Price Volatility

Is CNXC's price volatile compared to industry and market?
CNXC volatility
CNXC Beta0
Industry Beta1.18
Market Beta1

Stable Share Price: CNXC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CNXC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009270,000Chris Caldwellhttps://www.concentrix.com

Concentrix Corporation provides technology-infused customer experience solutions worldwide. It provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services. The company also offers customer lifecycle management; customer experience/user experience strategy and design; digital transformation; and voice of the customer and analytics solutions.

Concentrix Fundamentals Summary

How do Concentrix's earnings and revenue compare to its market cap?
CNXC fundamental statistics
Market CapUS$9.24b
Earnings (TTM)US$342.10m
Revenue (TTM)US$5.42b

27.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNXC income statement (TTM)
RevenueUS$5.42b
Cost of RevenueUS$3.44b
Gross ProfitUS$1.98b
ExpensesUS$1.64b
EarningsUS$342.10m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.55
Gross Margin36.61%
Net Profit Margin6.31%
Debt/Equity Ratio33.7%

How did CNXC perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Concentrix undervalued compared to its fair value and its price relative to the market?

27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNXC ($176.86) is trading above our estimate of fair value ($50.84)

Significantly Below Fair Value: CNXC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CNXC is good value based on its PE Ratio (27x) compared to the US IT industry average (35.2x).

PE vs Market: CNXC is poor value based on its PE Ratio (27x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CNXC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CNXC is good value based on its PB Ratio (3.6x) compared to the US IT industry average (5.3x).


Future Growth

How is Concentrix forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNXC's forecast earnings growth (13.2% per year) is above the savings rate (2%).

Earnings vs Market: CNXC's earnings (13.2% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: CNXC's revenue (7.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CNXC's revenue (7.5% 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 CNXC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Concentrix performed over the past 5 years?

40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNXC has high quality earnings.

Growing Profit Margin: CNXC's current net profit margins (6.3%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: CNXC's earnings have grown significantly by 40.3% per year over the past 5 years.

Accelerating Growth: CNXC's earnings growth over the past year (159.1%) exceeds its 5-year average (40.3% per year).

Earnings vs Industry: CNXC earnings growth over the past year (159.1%) exceeded the IT industry 35.6%.


Return on Equity

High ROE: CNXC's Return on Equity (13.5%) is considered low.


Financial Health

How is Concentrix's financial position?


Financial Position Analysis

Short Term Liabilities: CNXC's short term assets ($1.5B) exceed its short term liabilities ($888.8M).

Long Term Liabilities: CNXC's short term assets ($1.5B) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: CNXC's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CNXC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CNXC's debt is well covered by operating cash flow (52.1%).

Interest Coverage: CNXC's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet


Dividend

What is Concentrix current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNXC's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: CNXC's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: CNXC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CNXC is not paying a notable dividend for the US market, therefore no need to check if payments are 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 CNXC'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?

1.8yrs

Average management tenure


CEO

Chris Caldwell (48 yo)

0.83

Tenure

US$1,731,997

Compensation

Mr. Christopher A. Caldwell, also known as Chris, serves as the President & Chief Executive Officer of Concentrix Corporation since December 2020 and also serves as its Director since December 2020. He ser...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.73M) is below average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CNXC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNXC's board of directors are not considered experienced ( 0.8 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: CNXC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Concentrix Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Concentrix Corporation
  • Ticker: CNXC
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$9.237b
  • Shares outstanding: 52.23m
  • Website: https://www.concentrix.com

Number of Employees


Location

  • Concentrix Corporation
  • 44111 Nobel Drive
  • Fremont
  • California
  • 94538
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 23:05
End of Day Share Price2021/10/27 00:00
Earnings2021/08/31
Annual Earnings2020/11/30


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.