* Note: Prices are in Million (M) USD.
Description:
Concentrix Corporation offers global technology customer experience solutions. The company is headquartered in Fremont, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $241 M
Debt : $4,736 M
EBITDA : $1,411 M
Net Debt (Debt - Cash): $4,495 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Administrative and Support and Waste Management and Remediation Services
Industry: All Other Business Support Services
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: 4.04
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $330 M
Average Revenue: $5,316 M
Revenue Converted To Free Cash Flow (%): 6%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 5.65%
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 (2024-11-30): $9,619 M
Revenue 4 Years Ago (2020-11-30): $4,720 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 (2024-11-30): $65 M
Share Count 5 Years Ago (2020-11-30): $52 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $12.16
Trailing 12-Month Earnings Per Share (EPS): $11.70
Average Earnings Per Share (EPS): $11.93
Dividend Per Share (DPS): $1
Payout Ratio: 11%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $48
52-Week Low: $36
Threshold Price (15% Above 52-Week Low): $41
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: $2,923 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Concentrix Corporation (CNXC) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 15.56, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 15. Based on these all values average assigned is 15.14.
Value-Trades has assined P/E value 15.14. Since an average (Current Year EPS + Next Year EPS) earning per share is $11.93.
The fair value of Concentrix Corporation (CNXC) stock should be (15.14 x $11.93) = $180.62
