Wholesale-Durable Goods, NEC
Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products portfolio include pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, erosion control, and other related products; fire protection products, including fire protection pipes, and sprinkler heads and devices, as well as fabrication services; and meter products, such as smart meter products, meter accessories, installation, software, and other services. The company's specialty products and services are used in the maintenance, repair, replacement, and construction of water, wastewater, storm drainage, and fire protection infrastructure. Core & Main, Inc. was founded in 1874 and is headquartered in St. Louis, Missouri.
Sector
Discounted Cash Flow Valuation of Core & Main, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $1.03B | $1.339B | $1.704B | $2.12B | $2.579B | $3.066B | $3.56B | $4.035B | $4.461B | $4.808B | $5.049B | $50.49B |
DCF | $1.164B | $1.288B | $1.394B | $1.475B | $1.525B | $1.539B | $1.517B | $1.458B | $1.367B | $1.248B | $12.48B | |
Value | $26.45B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 02-2020 | 01-2021 | 01-2023 | 01-2024 | TTM |
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Net Margin | 1.1% | 1% | 5.5% | 5.5% | 5.5% |
ROA | - | 4.7% | 16% | 15% | 15% |
ROE | 4.7% | 4.6% | 15% | 24% | 24% |
The average Net Margin over the past 5 years is +5.52%.
The trend of Net Margin over the past 5 years is +0.03%.
The average ROA over the past 5 years is +15.19%.
The trend of ROA over the past 5 years is -1.19%.
The average ROE over the past 5 years is +19.77%.
The trend of ROE over the past 5 years is +9.16%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 02-2020 | 01-2021 | 01-2023 | 01-2024 | TTM | |||||
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Debt FCF | - | 11.50 | - | 1.85 | 1.85 | |||||
Debt Equity | - | 2.90 | 0.62 | 1.25 | 1.25 | |||||
MIN | ||||||||||
Graham Stability | - | - | - | 100% | 100% |
The Debt/FCF trailing twelve month is 1.85.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 1.00.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 02-2020 | 01-2023 | Trend |
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Revenue | 26% | 0.77% | -3.3% |
Net Income | 120% | 1.4% | -0.71% |
Stockholders Equity | 26% | -37% | -20% |
FCF | 79% | 170% | 81% |
The Revenue CAGR over the past 5 years is -.
The trend of Revenue growth rate over the past 5 years is -3.35%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -0.71%.
The Equity CAGR over the past 5 years is -.
The trend of Equity growth rate over the past 5 years is -20.34%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +80.86%.