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Core & Main
(NYSE:CNM)
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Rating:61Neutral
Price Target:
$43.00
▼(-0.85% Downside)
Action:Reiterated
Date:10/09/26
CNM’s score is supported primarily by solid underlying financial performance (healthy margins, strong free cash flow conversion, and strong returns on equity), but is held back by elevated leverage and a notably weak technical setup (below major moving averages with negative MACD). Valuation is reasonable at ~16.5x earnings, providing some support but not enough to offset the bearish trend.
Positive Factors
Solid distributor profitability
Healthy gross and operating margins indicate that Core & Main captures meaningful value beyond simple product resale. Profitability provides room to support branch operations, acquisitions, and customer service while helping preserve earnings power through normal changes in product mix and demand.
Negative Factors
Elevated leverage
Debt above equity reduces financial flexibility if demand softens or interest rates remain high. Greater leverage can constrain acquisition capacity, increase financing costs, and leave less balance-sheet room to absorb weaker working capital or an infrastructure spending slowdown.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid distributor profitability
Healthy gross and operating margins indicate that Core & Main captures meaningful value beyond simple product resale. Profitability provides room to support branch operations, acquisitions, and customer service while helping preserve earnings power through normal changes in product mix and demand.
Read all positive factors
Core & Main (CNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.69B
Dividend YieldN/A
Average Volume (3M)2.61M
Price to Earnings (P/E)16.6
Beta (1Y)0.91
Revenue Growth-0.54%
EPS Growth7.59%
CountryUS
Employees5,600
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.44
Shares Outstanding184,192,700
10 Day Avg. Volume2,106,748
30 Day Avg. Volume2,613,520
Financial Highlights & Ratios
PEG Ratio2.80
Price to Book (P/B)5.20
Price to Sales (P/S)1.36
P/FCF Ratio17.19
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit5.29
Enterprise Value/Ebitda11.45
Forecast
1Y Price Target
$53.64Price Target Upside23.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)3.11
Revenue Forecast (FY)$7.84B
Core & Main Business Overview & Revenue Model
Company Description
Core & Main, Inc. (CNM) is a leading supplier of vital infrastructure products and services across the United States. The company specializes in providing comprehensive solutions for water, wastewater, storm drainage, and fire protection systems. ...
How the Company Makes Money
Core & Main makes money primarily by purchasing water and infrastructure-related products from manufacturers and reselling them to end customers at a markup, generating revenue through product sales across its core end markets: waterworks (drinkin...
Core & Main Earnings Call Summary
Earnings Call Date:Jun 10, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call presents a fundamentally positive picture driven by municipal strength, margin improvement, robust cash generation, active share repurchases, accelerating secular growth in smart utility and treatment plant solutions, and an improving M&A pipeline. Offsetting items include soft residential demand, modest organic volume declines, PVC-related headwinds, and some near-term timing and macro uncertainty. On balance, the highlights (margin expansion, cash returns, strategic growth initiatives and reaffirmed guidance) outweigh the lowlights.Positive Updates
Strong Top-line and Profitability Metrics
Net sales of $1.9 billion in Q1 FY2026, adjusted EBITDA of $226 million (up ~1% YoY) and adjusted diluted EPS of $0.72 (up ~6% YoY from $0.68), demonstrating resilient demand and execution.
Negative Updates
Organic Volumes Decline and Soft End-Market Mix
Organic volumes were down ~1% year-over-year in Q1 and management estimates end-market demand down low single digits, reflecting weakness primarily in residential lot development.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-line and Profitability Metrics
Net sales of $1.9 billion in Q1 FY2026, adjusted EBITDA of $226 million (up ~1% YoY) and adjusted diluted EPS of $0.72 (up ~6% YoY from $0.68), demonstrating resilient demand and execution.
Read all positive updates
Company Guidance
Core & Main reaffirmed its fiscal 2026 guidance calling for net sales of $7.8–$7.9 billion, adjusted EBITDA of $950–$980 million and operating cash‑flow conversion of 60%–70% of adjusted EBITDA, while expecting overall end‑market volumes to be roughly flat for the year. In Q1 the company reported net sales of $1.9 billion, adjusted EBITDA $226 million, adjusted diluted EPS $0.72, gross margin 27.2% (up ~50 bps), adjusted EBITDA margin 11.8% (up 10 bps), organic volumes down ~1% with acquisitions contributing ~+1 point, and operating cash flow of $82 million. Balance‑sheet and capital metrics included net debt $2.0 billion (2.2x leverage), liquidity ≈$1.4 billion (including $150 million cash), LTM free cash‑flow yield 6.4% of market cap, $125 million of repurchases fiscal‑to‑date (≈$88M in Q1) and ~2.5 million shares repurchased YTD; the company opened 5 greenfields in Q1 and targets 8–10 in FY26. Treatment‑plant and smart‑utility grew double‑digit and high single‑digit in the quarter (25% and 15% 5‑yr CAGRs), and management expects further margin expansion from gross‑margin initiatives, cost actions and operating leverage, with PVC supplier price increases a potential modest tailwind later in the year.Core & Main Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.70B | 7.65B | 7.44B | 6.70B | 6.65B | 5.00B |
| Gross Profit | 2.08B | 2.06B | 1.98B | 1.82B | 1.79B | 1.28B |
| EBITDA | 962.00M | 920.00M | 913.00M | 894.00M | 924.00M | 524.00M |
| Net Income | 459.00M | 441.00M | 411.00M | 371.00M | 366.00M | 166.00M |
Balance Sheet | ||||||
| Total Assets | 6.71B | 6.08B | 5.87B | 5.07B | 4.91B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 312.00M | 220.00M | 8.00M | 1.00M | 177.00M | 1.00M |
| Total Debt | 2.75B | 2.44B | 2.51B | 2.07B | 1.63B | 1.62B |
| Total Liabilities | 4.61B | 4.01B | 4.10B | 3.54B | 2.50B | 2.60B |
| Stockholders Equity | 2.03B | 2.00B | 1.70B | 1.45B | 1.75B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 628.00M | 604.00M | 586.00M | 1.03B | 376.00M | -51.00M |
| Operating Cash Flow | 683.00M | 650.00M | 621.00M | 1.07B | 401.00M | -31.00M |
| Investing Cash Flow | -173.00M | -145.00M | -788.00M | -270.00M | -152.00M | -203.00M |
| Financing Cash Flow | -223.00M | -293.00M | 174.00M | -975.00M | -73.00M | -146.00M |
Core & Main Technical Analysis
Negative
43.37
Price Trends
43.42
Negative
45.23
Negative
48.88
Negative
Market Momentum
-0.68
Positive
36.42
Neutral
31.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNM, the sentiment is Negative. The current price of 43.37 is above the 20-day moving average (MA) of 41.85, below the 50-day MA of 43.42, and below the 200-day MA of 48.88, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNM.
Core & Main Risk Analysis
Core & Main disclosed 48 risk factors in its most recent earnings report. Core & Main reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Core & Main Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $17.82B | 24.92 | 14.06% | 0.53% | 12.51% | 13.23% | |
67 Neutral | $42.57B | 21.02 | 34.00% | 1.62% | 8.17% | 37.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $7.69B | 16.57 | 22.82% | ― | -0.54% | 7.59% | |
61 Neutral | $3.81B | 23.76 | 9.76% | ― | 3.28% | 32.49% | |
52 Neutral | $556.19M | -308.13 | -0.31% | ― | 2.13% | -107.14% | |
48 Neutral | $11.22B | -13.04 | -5.11% | 21.30% | 408.19% | -307.71% |
* Industrials Sector Average
CNM
Core & Main
40.35
-9.15
-18.48%
BXC
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WCC
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365.69
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SITE
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QXO
QXO Inc
10.81
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FERG
Ferguson Enterprises
220.04
-11.39
-4.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.