Core & Main (CNM)
NYSE:CNM
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Core & Main
(NYSE:CNM)
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Rating:60Neutral
Price Target:
$51.00
▲(0.41% Upside)
Action:ReiteratedDate:04/24/26
The score is primarily supported by solid profitability and ongoing free cash flow, but is held back by cooling growth, leverage-related balance sheet risk, and notably bearish technical signals (price below key moving averages with negative MACD). Valuation appears moderate-to-elevated at ~23.6x earnings, while recent corporate actions modestly improve financial flexibility and governance.
Positive Factors
Free cash flow generation
Core & Main generates strong, recurring free cash flow (~$604M TTM, ~5% growth) with FCF closely tracking net income (~0.93x). This cash conversion supports reinvestment, working capital needs, and deleveraging capacity, underpinning durable financial flexibility.
Negative Factors
Cooling revenue growth
Revenue contraction (~-1.5% TTM) marks a reversal from prior multi-year expansion and suggests weaker end-market demand or pricing pressure. For a distributor tied to public infrastructure and construction cycles, stalled top-line growth raises risk to sustained earnings expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Core & Main generates strong, recurring free cash flow (~$604M TTM, ~5% growth) with FCF closely tracking net income (~0.93x). This cash conversion supports reinvestment, working capital needs, and deleveraging capacity, underpinning durable financial flexibility.
Read all positive factors
Core & Main (CNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.43B
Dividend YieldN/A
Average Volume (3M)2.77M
Price to Earnings (P/E)23.6
Beta (1Y)1.18
Revenue Growth2.77%
EPS Growth8.42%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.37
Shares Outstanding188,072,310
10 Day Avg. Volume2,684,439
30 Day Avg. Volume2,770,480
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 Cap1.20
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda12.42
Forecast
1Y Price Target
$59.17Price Target Upside16.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.54
Revenue Forecast (FY)$7.88B
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 mark...
How the Company Makes Money
Core & Main primarily makes money by purchasing water infrastructure products from manufacturers and reselling them to customers at a margin through its distribution network (branch locations, salesforce, and logistics operations). Its key revenue...
Core & Main Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 09, 2026
Earnings Call Sentiment Neutral
The earnings call reveals a mixed sentiment with positive aspects such as net sales growth, gross margin improvement, and strategic investments being balanced by challenges like softness in the residential market, declining PVC pipe prices, and increased SG&A expenses due to inflation.Positive Updates
Net Sales Growth
Net sales increased by 1% to $2.1 billion, with acquisitions contributing approximately 1 point of growth.
Negative Updates
Residential Market Softness
Residential lot development softened, particularly in Sun Belt markets like Florida, Texas, Arizona, and Georgia.
Read all updates
Q3-2025 Updates
Positive
Negative
Net Sales Growth
Net sales increased by 1% to $2.1 billion, with acquisitions contributing approximately 1 point of growth.
Read all positive updates
Company Guidance
During the Core & Main Q3 2025 Earnings Call, the company provided guidance underscoring its strategic focus and market dynamics. Core & Main reported a 1% increase in net sales to $2.1 billion, driven by acquisitions and strong performance across sales initiatives, despite a decline in residential lot development. Municipal projects, which account for over 40% of sales, showcased robust growth amid a favorable funding environment, with state and local sources providing 95% of project funding. Data centers emerged as a growth driver within the nonresidential sector, contributing to a diversified project mix. The company highlighted its strategic initiatives, including geographic expansion and product diversification in areas like smart meters and fusible HDPE, resulting in gross margin expansion by 60 basis points to 27.2%. Additionally, Core & Main announced a $500 million increase to its share repurchase authorization, reflecting confidence in its growth prospects and cash flow generation. The company reaffirmed its full-year guidance with expectations of net sales between $7.6 billion and $7.7 billion, adjusted EBITDA of $920 million to $940 million, and operating cash flow of $550 million to $610 million.Core & Main Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.65B | 7.44B | 6.70B | 6.65B | 5.00B |
| Gross Profit | 2.06B | 1.98B | 1.82B | 1.79B | 1.28B |
| EBITDA | 914.00M | 913.00M | 894.00M | 924.00M | 524.00M |
| Net Income | 441.00M | 411.00M | 371.00M | 366.00M | 166.00M |
Balance Sheet | |||||
| Total Assets | 6.08B | 5.87B | 5.07B | 4.91B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 220.00M | 8.00M | 1.00M | 177.00M | 1.00M |
| Total Debt | 2.44B | 2.51B | 2.07B | 1.63B | 1.62B |
| Total Liabilities | 4.01B | 4.10B | 3.54B | 2.50B | 2.60B |
| Stockholders Equity | 2.00B | 1.70B | 1.45B | 1.75B | 1.32B |
Cash Flow | |||||
| Free Cash Flow | 604.00M | 586.00M | 1.03B | 376.00M | -51.00M |
| Operating Cash Flow | 650.00M | 621.00M | 1.07B | 401.00M | -31.00M |
| Investing Cash Flow | -145.00M | -788.00M | -270.00M | -152.00M | -203.00M |
| Financing Cash Flow | -293.00M | 174.00M | -975.00M | -73.00M | -146.00M |
Core & Main Technical Analysis
Negative
50.79
Price Trends
52.33
Negative
53.03
Negative
55.01
Negative
Market Momentum
0.31
Negative
47.63
Neutral
44.12
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 50.79 is above the 20-day moving average (MA) of 50.66, below the 50-day MA of 52.33, and below the 200-day MA of 55.01, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.12 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 47 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.96B | 24.95 | 18.80% | 0.70% | 7.54% | 6.04% | |
77 Outperform | $54.18B | 28.33 | 45.93% | 0.86% | 4.51% | -8.75% | |
68 Neutral | $14.88B | 18.89 | 13.02% | 0.72% | 7.76% | -0.29% | |
66 Neutral | $49.80B | 28.00 | 35.56% | 1.35% | 0.42% | -9.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.63B | 31.30 | 15.00% | 3.96% | 2.16% | -2.18% | |
60 Neutral | $9.43B | 23.55 | 23.20% | ― | 2.77% | 8.42% |
* Industrials Sector Average
CNM
Core & Main
48.44
-4.24
-8.05%
AIT
Applied Industrial Technologies
296.57
55.07
22.81%
MSM
MSC Industrial
100.75
27.21
37.01%
GWW
WW Grainger
1,144.81
129.50
12.75%
WCC
Wesco International
305.27
143.64
88.87%
FERG
Ferguson PLC
256.16
89.08
53.31%
Core & Main Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Core & Main Extends ABL Credit Facility and Maturity
Positive
Apr 10, 2026
On April 9, 2026, Core Main LP amended its existing ABL Credit Agreement to extend the maturity date of $1.25 billion in aggregate commitments to April 9, 2031, subject to an earlier maturity if certain other indebtedness remains outstanding 91 d...
Business Operations and StrategyExecutive/Board Changes
Core & Main refreshes board leadership and governance structure
Positive
Mar 27, 2026
On March 27, 2026, Core Main Inc. announced that, effective April 1, 2026, its board expanded and appointed former American Water Works CEO and CFO M. Susan Hardwick as a Class III director and member of the talent and compensation committee, wit...
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.