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CNXC

Concentrix NasdaqGS:CNXC Stock Report

Last Price

US$134.99

Market Cap

US$6.9b

7D

-3.3%

1Y

-16.3%

Updated

05 Jul, 2022

Data

Company Financials +
CNXC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends0/6

CNXC Stock Overview

Concentrix Corporation provides technology-infused customer experience (CX) solutions worldwide.

Concentrix Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Concentrix
Historical stock prices
Current Share PriceUS$134.99
52 Week HighUS$208.48
52 Week LowUS$131.01
Beta0
1 Month Change-15.62%
3 Month Change-16.34%
1 Year Change-16.34%
3 Year Changen/a
5 Year Changen/a
Change since IPO68.74%

Recent News & Updates

Jun 17
A Look At The Intrinsic Value Of Concentrix Corporation (NASDAQ:CNXC)

A Look At The Intrinsic 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-3.3%0.5%0.3%
1Y-16.3%-34.8%-18.4%

Return vs Industry: CNXC exceeded the US IT industry which returned -35.2% over the past year.

Return vs Market: CNXC exceeded the US Market which returned -19.1% over the past year.

Price Volatility

Is CNXC's price volatile compared to industry and market?
CNXC volatility
CNXC Average Weekly Movement5.9%
IT Industry Average Movement9.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

Stable Share Price: CNXC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CNXC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009290,000Chris Caldwellhttps://www.concentrix.com

Concentrix Corporation provides technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services. It 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$6.93b
Earnings (TTM)US$450.56m
Revenue (TTM)US$5.97b

15.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNXC income statement (TTM)
RevenueUS$5.97b
Cost of RevenueUS$3.87b
Gross ProfitUS$2.10b
Other ExpensesUS$1.65b
EarningsUS$450.56m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.78
Gross Margin35.15%
Net Profit Margin7.55%
Debt/Equity Ratio84.5%

How did CNXC perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

6%

Payout Ratio

Does CNXC pay a reliable dividends?

See CNXC dividend history and benchmarks
When do you need to buy CNXC by to receive an upcoming dividend?
Concentrix dividend dates
Ex Dividend DateJul 28 2022
Dividend Pay DateAug 09 2022
Days until Ex dividend22 days
Days until Dividend pay date34 days

Does CNXC pay a reliable dividends?

See CNXC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 CNXC?

Other financial metrics that can be useful for relative valuation.

CNXC 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/Revenue1.5x
Enterprise Value/EBITDA10.3x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

CNXC PE Ratio vs Peers
The above table shows the PE ratio for CNXC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average55.6x
WEX WEX
55.9x20.0%US$7.0b
TIXT TELUS International (Cda)
62.4x31.3%US$6.8b
WU Western Union
7.1x-5.2%US$6.5b
DLO DLocal
97x38.6%US$8.5b
CNXC Concentrix
15.4x7.1%US$6.9b

Price-To-Earnings vs Peers: CNXC is good value based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (55.6x).


Price to Earnings Ratio vs Industry

How does CNXC's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: CNXC is good value based on its Price-To-Earnings Ratio (15.4x) compared to the US IT industry average (29.2x)


Price to Earnings Ratio vs Fair Ratio

What is CNXC'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.

CNXC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.4x
Fair PE Ratio30x

Price-To-Earnings vs Fair Ratio: CNXC is good value based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (30x).


Share Price vs Fair Value

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

Below Fair Value: CNXC ($134.99) is trading below our estimate of fair value ($176.75)

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


Price to Earnings Growth Ratio

PEG Ratio: CNXC is poor value based on its PEG Ratio (2.2x)


Discover undervalued companies

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNXC's forecast earnings growth (7.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CNXC's earnings (7.1% per year) are forecast to grow slower than the US market (12.8% per year).

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

Revenue vs Market: CNXC's revenue (10.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CNXC's revenue (10.7% 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 CNXC's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Concentrix 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


43.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNXC has high quality earnings.

Growing Profit Margin: CNXC's current net profit margins (7.5%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CNXC's earnings have grown significantly by 43% per year over the past 5 years.

Accelerating Growth: CNXC's earnings growth over the past year (61.3%) exceeds its 5-year average (43% per year).

Earnings vs Industry: CNXC earnings growth over the past year (61.3%) exceeded the IT industry 20.6%.


Return on Equity

High ROE: CNXC's Return on Equity (16.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Concentrix'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: CNXC's short term assets ($1.6B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: CNXC's short term assets ($1.6B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: CNXC's net debt to equity ratio (78.5%) is considered high.

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 (22.7%).

Interest Coverage: CNXC's interest payments on its debt are well covered by EBIT (19.7x coverage).


Balance Sheet


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Dividend

What is Concentrix 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

  • Cash Flow Coverage


0.74%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 06 2022Ex Dividend DateJul 28 2022Dividend Pay DateAug 09 202212 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CNXC's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: CNXC's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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.


Earnings Payout to Shareholders

Earnings Coverage: CNXC is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: CNXC is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure


CEO

Chris Caldwell (49 yo)

10.08yrs

Tenure

US$15,087,737

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 ($USD15.09M) is above average for companies of similar size in the US market ($USD8.36M).

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


Leadership Team

Experienced Management: CNXC's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: CNXC's board of directors are not considered experienced ( 1.6 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 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.


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
  • Implied Market Cap: US$6.931b
  • Shares outstanding: 51.34m
  • 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 Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/05/31
Annual Earnings2021/11/30


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.