Concentrix (CNXC) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: 3.32%
• Average Volume (3M): 923.29K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.26
• Revenue Growth: 3.40%
• EPS Growth: 53.13%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.78
• Shares Outstanding: 62,257,440
• 10 Day Avg. Volume: 598,506
• 30 Day Avg. Volume: 923,292
• PEG Ratio: -0.33
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 6.81
• Enterprise Value/Market Cap: 3.33
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: $64.60
• Price Target Upside: 57.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $47.00 ▲(14.75% Upside)

Concentrix's strong financial performance and attractive valuation are offset by technical weaknesses and mixed earnings call sentiment. The company's growth potential is promising, but operational challenges and high leverage pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

AI Integration

Successful AI integration enhances service offerings, providing a competitive edge and positioning the company well in the evolving tech landscape.

Cash Flow Management

Efficient cash flow management ensures financial flexibility and supports ongoing investments and operational needs, bolstering long-term resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting strategic options and impacting the company's ability to weather economic downturns.

Margin Challenges

Ongoing margin pressures from operational inefficiencies could hinder profitability, affecting financial performance and investor confidence.

Free Cash Flow Adjustment

Reduced free cash flow expectations may impact the company's ability to fund growth initiatives and return capital to shareholders, affecting long-term growth prospects.

Concentrix Business Overview & Revenue Model

Company Description

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; digital transformation; and voice of the customer and analytics solutions. The company's clients include consumer electronics, technology, e-commerce, and health insurance companies, as well as global IPOs, social brands, and banks. Concentrix Corporation was incorporated in 2009 and is based in Fremont, California.

How the Company Makes Money

Concentrix generates revenue primarily through its customer experience services, which encompass business process outsourcing (BPO), customer support, technical support, and digital marketing solutions. The company operates on a fee-for-service model, charging clients based on the volume of services rendered or through fixed contracts for specific projects. Key revenue streams include multi-channel customer engagement services, analytics services, and technology solutions that help clients optimize their customer interactions. Additionally, partnerships with technology providers and platforms can enhance service offerings and expand market reach, contributing to Concentrix's overall earnings.

Concentrix Financial Statement Overview

Summary

Concentrix shows strong revenue growth and stable profit margins. However, high leverage and low net profit margins indicate areas for improvement. Efficient cash flow management supports a positive outlook, but careful debt and cost management are crucial.

Income Statement

Concentrix demonstrates strong revenue growth with a TTM increase of 99.6%, indicating robust expansion. Gross profit margins are stable around 35%, and EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the net profit margin is relatively low at 3.25%, suggesting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio is high at 1.11, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is moderate at 7.57%, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is strong, with a healthy ratio to net income, indicating good cash generation capabilities. Free cash flow growth is positive, although the free cash flow to net income ratio suggests some reliance on external financing. Overall, cash flow management appears solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.72B	9.62B	7.11B	6.32B	5.59B	4.72B
Gross Profit	3.43B	3.45B	2.58B	2.26B	1.97B	1.66B
EBITDA	842.12M	1.33B	997.53M	984.62M	855.92M	592.77M
Net Income	316.11M	251.22M	313.84M	435.05M	405.58M	164.81M
Balance Sheet
Total Assets	12.41B	11.99B	12.49B	6.67B	5.05B	5.18B
Cash, Cash Equivalents and Short-Term Investments	350.26M	240.57M	295.34M	145.38M	182.04M	152.66M
Total Debt	4.83B	5.60B	4.94B	2.22B	802.02M	1.15B
Total Liabilities	8.07B	7.95B	8.35B	3.97B	2.43B	2.88B
Stockholders Equity	4.34B	4.04B	4.14B	2.70B	2.62B	2.30B
Cash Flow
Free Cash Flow	515.81M	428.73M	497.48M	460.70M	365.10M	336.28M
Operating Cash Flow	747.15M	667.49M	678.01M	600.72M	514.18M	507.61M
Investing Cash Flow	-233.00M	-244.27M	-2.11B	-1.84B	-78.65M	-109.22M
Financing Cash Flow	-435.90M	-492.53M	1.80B	1.24B	-401.87M	-335.22M

Concentrix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Negative. The current price of 40.96 is below the 20-day moving average (MA) of 45.59, below the 50-day MA of 49.39, and below the 200-day MA of 50.36, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 27.82 is Positive, neither overbought nor oversold. The STOCH value of 14.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNXC.

Concentrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	―	$34.84B	16.63	14.50%	1.72%	7.44%	-4.57%
WNS	―	―	―	21.23%	―	1.94%	26.15%
INFY	―	$70.02B	21.39	29.15%	3.12%	4.62%	1.06%
G	―	$6.64B	12.57	21.86%	1.74%	7.37%	-14.64%
CNXC	―	$2.55B	9.01	7.08%	3.32%	3.40%	53.13%
EPAM	―	$8.86B	22.69	11.36%	―	9.73%	-0.29%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Concentrix Corporate Events

Concentrix Earnings Call: Mixed Sentiment Amid Growth and Challenges

Concentrix Corporation’s recent earnings call revealed a mixed sentiment, characterized by strong revenue growth and strategic achievements in AI integration and vertical markets like banking and media. However, these positive developments were counterbalanced by challenges in margin performance due to excess capacity, tariff impacts, and increased investments, leading to an adjusted free cash flow outlook. While there is optimism for future growth, it is tempered by current operational challenges.

Concentrix Corporation Reports Strong Q3 2025 Performance

Concentrix Corporation, a global leader in technology and services, specializes in providing integrated, end-to-end solutions across various industries, helping over 2,000 clients solve complex business challenges worldwide. In its third quarter of fiscal 2025, Concentrix reported a revenue increase of 4% year-on-year, surpassing its guidance, and raised its full-year growth outlook. The company highlighted strong demand for its integrated solutions and is on track to return over $240 million to shareholders through dividends and share repurchases.