Concentrix Corp

CNXC

Services-Business Services, NEC

Mkt Cap

$4.086B

PE

15.04

Debt

$5.087B

Cash

$418M

EV

$8.756B

FCF

$330.3M

Market Cap

$4.086B

P/E Ratio

15.04

Debt

$5.087B

Cash

$418M

EV

$8.756B

FCF

$330.3M

Charts data: {"Earnings":[{"time":"2019-11-29","value":117164000},{"time":"2020-11-29","value":164811000},{"time":"2021-11-29","value":399792000},{"time":"2022-11-29","value":428418000},{"time":"2023-11-29","value":307841000}],"Sales":[{"time":"2019-11-29","value":4707912000},{"time":"2020-11-29","value":4719534000},{"time":"2021-11-29","value":5587015000},{"time":"2022-11-29","value":6324473000},{"time":"2023-11-29","value":7114706000}],"Net Margins":[{"time":"2019-11-29","value":0.024886616402345667},{"time":"2020-11-29","value":0.03492103245786554},{"time":"2021-11-29","value":0.07155735218180012},{"time":"2022-11-29","value":0.06773971523002786},{"time":"2023-11-29","value":0.04326826716381534}],"Assets":[{"time":"2020-11-29","value":5177556000},{"time":"2021-11-29","value":5046367000},{"time":"2022-11-29","value":6669768000},{"time":"2023-11-29","value":12491827000}],"Stockholders Equity":[{"time":"2019-11-29","value":1469841000},{"time":"2020-11-29","value":2302085000},{"time":"2021-11-29","value":2620255000},{"time":"2022-11-29","value":2695904000},{"time":"2023-11-29","value":4143294000}],"ROE":[{"time":"2019-11-29","value":0.07971202327326561},{"time":"2020-11-29","value":0.07159205676593175},{"time":"2021-11-29","value":0.15257751631043542},{"time":"2022-11-29","value":0.15891441238263676},{"time":"2023-11-29","value":0.07429861361515741}],"ROA":[{"time":"2020-11-29","value":0.05963450709176299},{"time":"2021-11-29","value":0.11342754104091121},{"time":"2022-11-29","value":0.09598414817426933},{"time":"2023-11-29","value":0.05294077479619274}]}

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; analytics and actionable insights; digital transformation; and voice of the customer and analytics solutions. The company's clients include technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, healthcare, and others, as well as global IPOs, social brands, and banks. Concentrix Corporation was incorporated in 2009 and is based in Newark, California.

Sector

10-Q
8/31/23
10-Q
5/31/23
10-Q
2/28/23
10-K
11/30/22
10-Q
8/31/22
10-Q
5/31/22
10-Q
2/28/22
10-K
11/30/21
10-Q
8/31/21
10-Q
5/31/21
10-Q
2/28/21
10-K
11/30/20

DCF

Discounted Cash Flow Valuation of Concentrix Corp

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	$330.3M	$383.9M	$441.4M	$502.1M	$564.8M	$628.3M	$691.1M	$751.5M	$807.9M	$858.3M	$901.3M	$9.013B
DCF		$333.8M	$333.8M	$330.1M	$322.9M	$312.4M	$298.8M	$282.5M	$264.1M	$244M	$222.8M	$2.228B
Value	$5.173B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 13%

Earnings Stability -63%

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.

Data are missing

Years	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Net Margin	2.5%	3.5%	7.2%	6.8%	4.3%	3.4%
ROA	-	6%	11%	9.6%	5.3%	5.3%
ROE	8%	7.2%	15%	16%	7.4%	6.6%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.33%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.29%.

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

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

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +7.43%.

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

The trend of ROE over the past 5 years is -.

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.

The company has high debt with respect to the cashflow it generates.

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

Years	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Debt FCF	-	3.42	2.20	4.84	10.05	15.40
Debt Equity	-	0.50	0.31	0.83	1.21	1.24
MIN
Graham Stability	-	-	-	100%	93%	93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 15.40.

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 0.93.

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	11-2020	11-2022	Trend
Revenue	15%	12%	3.2%
Net Income	23%	-28%	-34%
Stockholders Equity	22%	54%	-2%
FCF	14%	8%	4.4%

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 +3.16%.

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 -34.19%.

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 -1.97%.

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 +4.36%.