* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $8 M
Debt : $2,529 M
EBITDA : $918 M
Net Debt (Debt - Cash): $2,521 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Real estate and rental and leasing
Industry: General rental centers
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 25.26
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $309 M
Average Revenue: $4,504 M
Revenue Converted To Free Cash Flow (%): 6.9%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $7,441 M
Revenue 4 Years Ago (2021-01-31): $3,642 M
Last 5 Years Average Revenue Growth: 21%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $201 M
Share Count 5 Years Ago (2021-01-31): $241 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.76
Trailing 12-Month Earnings Per Share (EPS): $2.40
Average Earnings Per Share (EPS): $2.58
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: 15.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $65
52-Week Low: $37
Threshold Price (15% Above 52-Week Low): $43
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $12,636 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Core & Main Inc (CNM) stock.
Last 3 Years Avg PE 18.35, Fair Value PE 12, Industry Based PE 15, Growth Based PE 20, RCFC Based PE 15.5, ROE Based PE 22.46, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.20. Value-Trades has assined P/E value 17.20. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.58.
The fair value of Core & Main Inc (CNM) stock should be (17.20 x $2.58) = $44.37.
