Core & Main (CNM) AI Stock Analysis

• Market Cap: $10.41B
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.34
• Revenue Growth: 8.09%
• EPS Growth: 6.33%
• Country: US
• Employees: 5,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.72
• Shares Outstanding: 188,802,670
• 10 Day Avg. Volume: 1,122,496
• 30 Day Avg. Volume: 2,258,666
• PEG Ratio: -1.08
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 18.46
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.13
• Enterprise Value/Ebitda: 2.54
• 1Y Price Target: $58.88
• Price Target Upside: 6.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $61.00 ▲(10.71% Upside)

Core & Main's strong financial performance and strategic initiatives are the primary drivers of its stock score. However, technical indicators suggest caution due to overbought conditions, and valuation metrics indicate potential overvaluation. The company's confidence in its growth prospects, as reflected in its earnings call, supports a positive outlook despite market challenges.

Positive Factors

Strong Revenue Growth

The company's robust revenue growth indicates effective market penetration and product demand, supporting long-term business sustainability.

Municipal Market Strength

Strong performance in municipal projects, backed by state funding, ensures stable revenue streams and growth opportunities.

Strategic Growth Initiatives

Successful product diversification and geographic expansion enhance market position and drive sustainable growth.

Negative Factors

Reliance on Debt

Dependence on debt can increase financial risk, especially in volatile markets, potentially impacting long-term financial health.

Residential Market Softness

Weakness in the residential market may limit growth prospects and affect revenue diversification.

SG&A Expense Increase

Rising SG&A expenses due to inflation and strategic investments could pressure margins and reduce profitability.

Core & Main Business Overview & Revenue Model

Company Description

Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets in the United States. Its products include pipes, valves, hydrants, fittings, and other products and services; storm drainage products, such as corrugated piping systems, retention basins, inline drains, manholes, grates, geosynthetics, and other related products; fire protection products, including fire protection pipes, sprinkler heads and other devices, fire suppression systems, and related accessories, as well as fabrication services; and meter products, such as smart meter products, installation, software and other services. The company's specialty products and services are used in the maintenance, repair, replacement, and construction of water and fire protection infrastructure. Core & Main, Inc. was founded in 1874 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Core & Main generates revenue through the sale of its extensive product offerings to contractors, municipalities, and utilities. The company primarily earns money by distributing essential materials used in the construction and maintenance of water and sewer systems. Key revenue streams include direct sales of products, as well as service contracts that provide inventory management and logistical support to clients. Additionally, Core & Main may benefit from partnerships with manufacturers and suppliers, allowing for a diverse product range and competitive pricing strategies that enhance its market position and profitability.

Core & Main Financial Statement Overview

Summary

Core & Main exhibits strong financial health with robust revenue growth and profitability. The company effectively manages its leverage, although reliance on debt remains a concern. Cash flow generation is solid, but historical volatility suggests a need for cautious cash management.

Income Statement

Core & Main has demonstrated strong revenue growth with a 31% increase in TTM, supported by solid gross and net profit margins. The company maintains a healthy EBIT and EBITDA margin, indicating efficient operations and profitability. However, the slight decline in EBIT margin over the years suggests potential cost pressures.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, which has improved over time, indicating better financial leverage management. The return on equity remains robust, reflecting effective use of equity capital. However, the equity ratio suggests a reliance on debt financing, which could pose risks in volatile markets.

Cash Flow

Core & Main's cash flow performance is strong, with significant free cash flow growth in the TTM period. The operating cash flow to net income ratio indicates good cash conversion efficiency. However, fluctuations in free cash flow growth in previous years highlight potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.76B	7.44B	6.70B	6.65B	5.00B	3.64B
Gross Profit	2.08B	1.98B	1.82B	1.79B	1.28B	878.00M
EBITDA	922.00M	913.00M	894.00M	924.00M	524.00M	338.00M
Net Income	435.00M	411.00M	371.00M	366.00M	166.00M	37.00M
Balance Sheet
Total Assets	6.30B	5.87B	5.07B	4.91B	4.43B	3.92B
Cash, Cash Equivalents and Short-Term Investments	89.00M	8.00M	1.00M	177.00M	1.00M	380.90M
Total Debt	2.43B	2.51B	2.07B	1.63B	1.62B	2.39B
Total Liabilities	4.25B	4.10B	3.54B	2.50B	2.60B	3.12B
Stockholders Equity	1.98B	1.70B	1.45B	1.75B	1.32B	801.00M
Cash Flow
Free Cash Flow	575.00M	586.00M	1.03B	376.00M	-51.00M	202.00M
Operating Cash Flow	617.00M	621.00M	1.07B	401.00M	-31.00M	214.00M
Investing Cash Flow	-102.00M	-788.00M	-270.00M	-152.00M	-203.00M	-228.90M
Financing Cash Flow	-436.00M	174.00M	-975.00M	-73.00M	-146.00M	215.00M

Core & Main Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNM, the sentiment is Positive. The current price of 55.1 is above the 20-day moving average (MA) of 54.33, above the 50-day MA of 51.26, and above the 200-day MA of 54.97, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNM.

Core & Main Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	75 Outperform	$12.80B	20.99	13.06%	0.72%	5.28%	1.97%
AIT	74 Outperform	$9.84B	25.45	22.10%	0.70%	4.03%	5.93%
GWW	73 Outperform	$47.77B	28.84	48.98%	0.86%	4.83%	-3.60%
CNM	71 Outperform	$10.41B	24.19	23.85%	―	8.09%	6.33%
FERG	65 Neutral	$43.39B	23.19	32.90%	1.35%	4.92%	18.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MSM	62 Neutral	$4.52B	22.93	14.84%	3.96%	-1.35%	-22.24%

Core & Main Corporate Events

Core & Main Expands Share Repurchase Program by $500M

On December 9, 2025, Core & Main announced a $500 million increase to its share repurchase program, raising the total authorization to $1 billion. As of December 8, 2025, the company had repurchased $316 million in shares, leaving $684 million available for future buybacks. The company also reported its fiscal 2025 third-quarter results, showing a 1.2% increase in net sales to $2,062 million, driven by acquisitions and strong sales initiatives. Despite challenges in residential demand, Core & Main achieved growth in several product categories and expanded geographically by opening new locations in Houston, Texas, and Denver, Colorado. The company continues to focus on strategic priorities, including cost savings and geographic expansion, to maintain its industry-leading position and create long-term shareholder value.

The most recent analyst rating on (CNM) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Core & Main stock, see the CNM Stock Forecast page.