Core & Main (CNM) AI Stock Analysis

• Market Cap: $10.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.37
• Revenue Growth: 11.02%
• EPS Growth: 7.08%
• Country: US
• Employees: 5,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.87
• Shares Outstanding: 189,654,480
• 10 Day Avg. Volume: 1,788,433
• 30 Day Avg. Volume: 2,309,303
• PEG Ratio: -1.07
• Price to Book (P/B): 6.30
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 18.25
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 16.21
• 1Y Price Target: $60.00
• Price Target Upside: 17.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $59.00 ▲(15.46% Upside)

Core & Main's overall stock score reflects strong financial performance and strategic growth initiatives. However, technical indicators suggest potential bearish momentum, and valuation is moderate. The mixed earnings call outlook, with revised guidance and elevated costs, also impacts the score.

Positive Factors

Revenue Growth

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

Market Share Gains

Gaining market share in key projects enhances competitive positioning and supports sustained revenue and profit growth.

Canadian Expansion

Expanding into Canada opens new revenue streams and diversifies market exposure, strengthening long-term growth prospects.

Negative Factors

Residential Market Decline

A decline in the residential market could reduce sales and impact revenue, challenging the company's growth in this segment.

Elevated Operating Costs

Rising operating costs can pressure margins and profitability, potentially limiting financial flexibility and investment capacity.

Revised Downward Guidance

Lowered financial guidance indicates potential revenue and profit challenges, affecting investor confidence and strategic planning.

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 primarily through the distribution of its core products, including waterworks and plumbing supplies. The company's revenue model is centered on a combination of product sales, value-added services, and rental solutions. Key revenue streams include direct sales to contractors and municipalities, which account for a significant portion of its income. Additionally, Core & Main benefits from strategic partnerships with leading manufacturers, allowing it to offer a wide range of quality products and stay competitive in pricing. The company also leverages its extensive distribution network and logistics capabilities to enhance efficiency and manage costs, contributing to its overall profitability.

Core & Main Financial Statement Overview

Summary

Core & Main demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable with a reasonable level of leverage and strong return on equity. Cash flow generation remains robust, despite a slight decline in free cash flow growth.

Income Statement

Core & Main has demonstrated strong revenue growth, with a TTM revenue growth rate of 1.7%. The company maintains healthy profitability metrics, with a gross profit margin of 26.6% and a net profit margin of 5.5% in the TTM period. EBIT and EBITDA margins are also robust at 9.5% and 12.1%, respectively. These figures indicate a solid operational performance, although there is a slight decline in margins compared to previous periods.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.45, indicating a balanced approach to leveraging. The return on equity is strong at 24.6%, reflecting efficient use of equity capital. However, the equity ratio is not explicitly provided, which could provide further insights into asset financing. Overall, the balance sheet reflects a stable financial position with manageable leverage.

Cash Flow

Cash flow metrics reveal a slight decline in free cash flow growth, with a negative growth rate of -2.6% in the TTM period. The operating cash flow to net income ratio is 0.50, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is high at 93.4%, indicating strong cash conversion. Despite the decline in free cash flow growth, the company maintains solid cash flow generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.74B	7.44B	6.70B	6.65B	5.00B	3.64B
Gross Profit	2.06B	1.98B	1.82B	1.79B	1.28B	878.00M
EBITDA	926.00M	913.00M	894.00M	924.00M	524.00M	338.00M
Net Income	431.00M	411.00M	371.00M	366.00M	166.00M	37.00M
Balance Sheet
Total Assets	6.31B	5.87B	5.07B	4.91B	4.43B	3.59B
Cash, Cash Equivalents and Short-Term Investments	25.00M	8.00M	1.00M	177.00M	1.00M	380.90M
Total Debt	2.53B	2.51B	2.07B	1.63B	1.62B	2.39B
Total Liabilities	4.34B	4.10B	3.54B	2.50B	2.60B	2.92B
Stockholders Equity	1.89B	1.70B	1.45B	1.75B	1.32B	801.00M
Cash Flow
Free Cash Flow	564.00M	586.00M	1.03B	376.00M	-51.00M	202.00M
Operating Cash Flow	606.00M	621.00M	1.07B	401.00M	-31.00M	214.00M
Investing Cash Flow	-198.00M	-788.00M	-270.00M	-152.00M	-203.00M	-228.90M
Financing Cash Flow	-396.00M	174.00M	-975.00M	-73.00M	-146.00M	215.00M

Core & Main Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 51.1 is below the 20-day moving average (MA) of 52.23, below the 50-day MA of 53.52, and below the 200-day MA of 55.09, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNM.

Core & Main Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	74 Outperform	$12.26B	19.78	13.06%	0.69%	5.28%	1.97%
AIT	74 Outperform	$9.73B	24.80	22.10%	0.68%	4.03%	5.93%
GWW	73 Outperform	$45.76B	26.86	48.98%	0.90%	4.83%	-3.60%
CNM	69 Neutral	$10.10B	22.75	24.42%	―	11.02%	7.08%
FERG	69 Neutral	£48.03B	26.28	32.29%	1.35%	3.80%	9.26%
MSM	64 Neutral	$4.84B	24.31	14.34%	3.97%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Core & Main Corporate Events

Core & Main Reports Strong Q2 2025 Performance

Core & Main, Inc., based in St. Louis, is a leading specialty distributor focused on water, wastewater, storm drainage, and fire protection products, serving municipalities, private water companies, and professional contractors across the U.S. with over 370 locations.

Core & Main’s Earnings Call: Mixed Outlook Amid Growth

Core & Main, Inc. Class A’s recent earnings call painted a mixed picture for investors. While the company celebrated significant net sales growth and strategic expansion into the Canadian market, these positive developments were tempered by challenges such as a decline in the residential market, elevated operating costs, and a downward revision in financial guidance for fiscal 2025.