Concentrix Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bright Horizons Family Solutions, Inc.

Remitly Global, Inc.

Genpact Ltd.

Concentrix Corp.

TriNet Group, Inc.

MAXIMUS, Inc.

ADT, Inc.

FTI Consulting, Inc.

Clarivate Plc

R1 RCM, Inc.

WeWork, Inc.

Why is Concentrix Corp. ?

Healthy long term growth as Net Sales has grown by an annual rate of 22.39% and Operating profit at 25.52%

Flat results in May 25

ROCE(HY) Lowest at 5.59%
OPERATING PROFIT(Q) Lowest at USD 329.91 MM
OPERATING PROFIT MARGIN(Q) Lowest at 13.65 %

With ROCE of 8.88%, it has a fair valuation with a 0.95 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.17%, its profits have fallen by -10.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.17% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Concentrix Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Concentrix Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Concentrix Corp.

-18.72%

-0.65

63.72%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.39%

EBIT Growth (5y)

25.52%

EBIT to Interest (avg)

8.89

Debt to EBITDA (avg)

2.54

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.01

Tax Ratio

16.17%

Dividend Payout Ratio

33.39%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.33%

ROE (avg)

11.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.90

EV to EBIT

10.74

EV to EBITDA

5.71

EV to Capital Employed

0.95

EV to Sales

0.87

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

8.88%

ROE (Latest)

8.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 713.97 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 52.67%

DIVIDEND PER SHARE(HY)

Highest at USD 4.89

RAW MATERIAL COST(Y)

Fallen by 1.38% (YoY

-4What is not working for the Company

ROCE(HY)

Lowest at 5.59%

OPERATING PROFIT(Q)

Lowest at USD 329.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.65 %

Here's what is working for Concentrix Corp.

Operating Cash Flow

Highest at USD 713.97 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 4.89 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 52.67% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Concentrix Corp.

Operating Profit

Lowest at USD 329.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 13.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales