Concentrix (CNXC) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: 2.56%
• Average Volume (3M): 624.99K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.20
• Revenue Growth: 11.31%
• EPS Growth: -16.02%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 2.70
• Shares Outstanding: 63,025,120
• 10 Day Avg. Volume: 587,042
• 30 Day Avg. Volume: 624,992
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.81
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $63.60
• Price Target Upside: 22.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $58.00 ▲(11.39% Upside)

Concentrix's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by revenue growth and AI advancements. Technical indicators show mixed signals, and valuation metrics suggest reasonable pricing. Challenges such as tariff impacts and foreign exchange fluctuations slightly dampen the outlook.

Positive Factors

Future Growth Expectations

The company’s strong sales pipeline should generate sequential revenue growth over the balance of fiscal.

Generative AI and Synergies

The introduction of Concentrix's Generative AI-based tools and faster realization of synergies from the Webhelp acquisition help offset some concerns.

Revenue Performance

Concentrix reported fiscal Q2/25 total revenue of $2.42 billion, which exceeded forecasts and the FactSet consensus forecast by 2%.

Negative Factors

Earnings and EBITDA Shortfall

Concentrix reported fiscal Q2/25 non-GAAP EPS of $2.70, which was less than the forecast of $2.75 and the FactSet consensus forecast of $2.78.

Macroeconomic and AI Risks

Headwinds from weak macroeconomic conditions and potential risks from Generative AI impact remain a concern.

Operating Margin Concerns

Operating Margin missed guidance mid-point by 80 basis points despite the revenue beat, due to negative operating leverage and investments for future growth.

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 makes money primarily through its business process outsourcing (BPO) services, where it partners with companies to handle their customer interactions and back-office functions. The company generates revenue by providing outsourced customer support, technical support, sales, and marketing services, often on a contractual basis. Concentrix also offers consulting and analytics solutions, leveraging data to help clients improve their customer experience strategies. Key revenue streams include long-term service agreements with businesses across multiple industries, often tailored to meet the specific needs of each client. Significant partnerships with technology providers and industry leaders further enhance Concentrix's ability to deliver comprehensive solutions and drive its earnings.

Concentrix Financial Statement Overview

Summary

Concentrix demonstrates strong revenue growth and effective debt management, positioning it well within the Information Technology Services industry. However, profitability metrics indicate some pressure, which, coupled with strong cash flow generation, provides a buffer against potential risks.

Income Statement

Concentrix demonstrates strong revenue growth with a 51.86% increase from 2020 to 2023, indicating robust demand for its services. The gross profit margin and EBIT margin show stability, with a recent TTM gross profit margin of 34.12% and EBIT margin of 6.76%. However, the net profit margin has slightly decreased to 2.81% TTM, reflecting potential cost pressures or increased competition.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of 33.92% TTM. The debt-to-equity ratio has significantly improved to 0.11, suggesting effective debt management. However, the return on equity has declined from 16.15% in 2022 to 6.68% TTM, indicating a drop in profitability relative to shareholders' equity.

Cash Flow

Concentrix has maintained a healthy operating cash flow with a TTM operating cash flow to net income ratio of 2.66, indicating strong cash generation capabilities relative to net income. The free cash flow has grown from 2022 to TTM, demonstrating effective capital expenditure management. However, fluctuations in cash flow from financing activities suggest potential challenges in external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.63B	9.62B	7.11B	6.32B	5.59B	4.72B
Gross Profit	3.44B	3.45B	2.58B	2.26B	1.97B	1.66B
EBITDA	1.27B	1.33B	997.53M	984.62M	855.92M	592.77M
Net Income	244.63M	251.22M	313.84M	435.05M	405.58M	164.81M
Balance Sheet
Total Assets	12.40B	11.99B	12.49B	6.67B	5.05B	5.18B
Cash, Cash Equivalents and Short-Term Investments	342.76M	240.57M	295.34M	145.38M	182.04M	152.66M
Total Debt	4.89B	4.74B	4.94B	2.22B	802.02M	1.15B
Total Liabilities	8.12B	7.95B	8.35B	3.97B	2.43B	2.88B
Stockholders Equity	4.28B	4.04B	4.14B	2.70B	2.62B	2.30B
Cash Flow
Free Cash Flow	484.94M	428.73M	497.48M	460.70M	365.10M	336.28M
Operating Cash Flow	713.97M	667.49M	678.01M	600.72M	514.18M	507.61M
Investing Cash Flow	-230.69M	-244.27M	-2.11B	-1.84B	-78.65M	-109.22M
Financing Cash Flow	-355.86M	-492.53M	1.80B	1.24B	-401.87M	-335.22M

Concentrix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 52.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Neutral. The current price of 52.07 is above the 20-day moving average (MA) of 49.98, below the 50-day MA of 53.74, and above the 200-day MA of 48.91, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNXC.

Concentrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	79 Outperform	$7.81B	14.86	21.86%	1.42%	7.37%	-14.64%
WNS	78 Outperform	$3.22B	20.08	21.23%	―	1.94%	26.15%
CTSH	74 Outperform	$34.61B	14.39	16.69%	1.70%	6.34%	12.16%
ASGN	74 Outperform	$2.31B	16.38	7.71%	―	-6.31%	-23.56%
CNXC	71 Outperform	$3.13B	13.63	5.59%	2.56%	11.31%	-16.02%
DXC	68 Neutral	$2.45B	6.95	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%

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.