Core & Main, Inc.

CNM

Wholesale-Durable Goods, NEC

Mkt Cap

$10.11B

PE

27.24

Debt

$1.908B

Cash

$1M

EV

$12.01B

FCF

$1.03B

Market Cap

$10.11B

P/E Ratio

27.24

Debt

$1.908B

Cash

$1M

EV

$12.01B

FCF

$1.03B

Charts data: {"Earnings":[{"time":"2020-02-01","value":36000000},{"time":"2021-01-30","value":37000000},{"time":"2023-01-28","value":366000000},{"time":"2024-01-27","value":371000000}],"Sales":[{"time":"2020-02-01","value":3389000000},{"time":"2021-01-30","value":3642000000},{"time":"2023-01-28","value":6651000000},{"time":"2024-01-27","value":6702000000}],"Net Margins":[{"time":"2020-02-01","value":0.010622602537621718},{"time":"2021-01-30","value":0.010159253157605712},{"time":"2023-01-28","value":0.05502931889941362},{"time":"2024-01-27","value":0.05535660996717398}],"Assets":[{"time":"2021-01-30","value":3923700000},{"time":"2023-01-28","value":4909000000},{"time":"2024-01-27","value":5069000000}],"Stockholders Equity":[{"time":"2020-02-01","value":770500000},{"time":"2021-01-30","value":800700000},{"time":"2023-01-28","value":2410000000},{"time":"2024-01-27","value":1524000000}],"ROE":[{"time":"2020-02-01","value":0.04672290720311486},{"time":"2021-01-30","value":0.04620956662919945},{"time":"2023-01-28","value":0.15186721991701244},{"time":"2024-01-27","value":0.24343832020997375}],"ROA":[{"time":"2021-01-30","value":0.047149374315059764},{"time":"2023-01-28","value":0.15787329394988797},{"time":"2024-01-27","value":0.145985401459854}]}

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

10-Q
10/29/23
10-Q
7/30/23
10-Q
4/30/23
10-K
1/29/23
10-Q
10/30/22
10-Q
7/31/22
10-Q
5/1/22
10-K
1/30/22
10-Q
10/31/21
10-Q
8/1/21

DCF

Discounted Cash Flow Valuation of Core & Main, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 92%

Earnings Stability 1.5%

Competitiveness and MOAT

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	02-2020	01-2021	01-2023	01-2024	TTM
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%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.52%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +15.19%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.19%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.77%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +9.16%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	02-2020	01-2021	01-2023	01-2024	TTM
Debt FCF	-	11.50	-	1.85	1.85
Debt Equity	-	2.90	0.62	1.25	1.25
MIN
Graham Stability	-	-	-	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.85.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

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.

Earnings growth has not been increasing in the past years.

Years	02-2020	01-2023	Trend
Revenue	26%	0.77%	-3.3%
Net Income	120%	1.4%	-0.71%
Stockholders Equity	26%	-37%	-20%
FCF	79%	170%	81%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -3.35%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.71%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -20.34%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +80.86%.