Concentrix (CNXC) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: 2.78%
• Average Volume (3M): 929.14K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.23
• Revenue Growth: 3.40%
• EPS Growth: 53.14%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.78
• Shares Outstanding: 63,025,120
• 10 Day Avg. Volume: 1,492,399
• 30 Day Avg. Volume: 929,138
• 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: 2.58
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 9.25
• 1Y Price Target: $64.60
• Price Target Upside: 35.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $52.00 ▲(8.70% Upside)

Concentrix's overall stock score reflects strong financial performance and strategic growth initiatives, particularly in AI integration. However, technical indicators show bearish trends, and margin challenges pose risks. The stock is reasonably valued, providing a balanced investment opportunity.

Positive Factors

AI Integration Success

The integration of AI into 40% of new projects underscores Concentrix's strategic focus on innovation, enhancing its competitive edge and positioning it well for sustained growth in tech-driven markets.

Strong Revenue Growth

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

Cash Flow Management

Effective cash flow management ensures liquidity and financial flexibility, enabling Concentrix to invest in growth opportunities and manage debt efficiently.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns, impacting long-term sustainability.

Margin Challenges

Challenges in maintaining margins due to excess capacity and tariff impacts can strain profitability, requiring strategic adjustments to sustain long-term financial health.

Low Net Profit Margin

A low net profit margin suggests inefficiencies in cost management, which could hinder profitability and limit the company's ability to reinvest in its business for future growth.

Concentrix Business Overview & Revenue Model

Company Description

Concentrix (CNXC) is a global leader in customer experience solutions, providing a wide array of services including customer engagement, digital transformation, and technology solutions. Operating across various sectors such as technology, healthcare, automotive, and retail, Concentrix focuses on enhancing customer interactions through innovative strategies and analytics-driven insights. The company aims to improve customer satisfaction and drive operational efficiencies for businesses worldwide.

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: 47.84
• 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 CNXC, the sentiment is Negative. The current price of 47.84 is below the 20-day moving average (MA) of 52.54, below the 50-day MA of 51.35, and below the 200-day MA of 50.47, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 is Neutral, 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
INFY	77 Outperform	$67.68B	20.89	28.18%	3.13%	4.52%	-0.22%
WNS	77 Outperform	$3.27B	20.35	20.43%	―	1.94%	26.15%
G	76 Outperform	$7.21B	13.74	20.81%	1.61%	7.37%	-14.64%
CTSH	74 Outperform	$32.72B	13.61	15.93%	1.82%	6.34%	12.16%
EPAM	68 Neutral	$8.51B	21.98	10.94%	―	9.73%	-0.29%
CNXC	67 Neutral	$3.02B	10.19	7.08%	2.78%	3.40%	53.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Concentrix Corporate Events

Olivier Duha Resigns from Concentrix Board of Directors

On June 3, 2025, Olivier Duha resigned from the Board of Directors of Concentrix Corporation, effective immediately. His resignation was due to personal reasons and not because of any disagreements with the company’s operations, policies, or practices.