Concentrix (CNXC) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: 2.35%
• Average Volume (3M): 734.08K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.08
• Revenue Growth: 11.31%
• EPS Growth: -16.02%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.70
• Shares Outstanding: 63,025,120
• 10 Day Avg. Volume: 1,130,335
• 30 Day Avg. Volume: 734,080
• PEG Ratio: -0.12
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $65.00
• Price Target Upside: 14.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $68.00 ▲(19.97%Upside)

Concentrix's strong technical indicators and robust earnings outlook are the primary drivers of its positive stock score. The company's financial performance is solid, though net profit margins and high debt levels are areas to watch. Valuation is fair, and the dividend yield is appealing for income investors.

Positive Factors

Market Positioning

Management expects the decision to maintain labor will result in market share gains from peers and higher volumes from impacted clients.

Revenue Performance

Concentrix reported total revenue of $2.42 billion, exceeding both analyst forecasts and the FactSet consensus by 2%.

Strategic Investments

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

Negative Factors

Earnings Performance

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

Macroeconomic Conditions

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

Operating Margin

Despite the revenue beat, the operating margin missed guidance due to negative operating leverage from holding labor intact for paused client programs and investments for future growth.

Concentrix Business Overview & Revenue Model

Company Description

Concentrix Corporation (CNXC) is a global leader in providing customer experience solutions and technology. The company operates across various sectors including automotive, banking and financial services, healthcare, technology, and consumer electronics. Concentrix offers a broad range of services such as customer engagement, business process optimization, and digital transformation solutions, helping businesses enhance their operational efficiency and customer satisfaction.

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: Positive
• Last Price: 56.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Positive. The current price of 56.68 is above the 20-day moving average (MA) of 55.31, above the 50-day MA of 54.60, and above the 200-day MA of 48.68, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNXC.

Concentrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	78 Outperform	$3.47B	19.24	21.21%	―	-0.64%	30.96%
CTSH	78 Outperform	$39.66B	16.94	16.61%	1.54%	4.09%	14.05%
G	76 Outperform	$8.05B	15.67	22.21%	1.48%	7.31%	-15.86%
CNXC	76 Outperform	$3.57B	15.56	5.59%	2.35%	11.31%	-16.02%
DXC	70 Outperform	$2.84B	7.61	12.88%	―	-5.82%	469.88%
ASGN	66 Neutral	$2.17B	14.13	8.65%	―	-8.05%	-18.60%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%

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.

The most recent analyst rating on (CNXC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Concentrix stock, see the CNXC Stock Forecast page.