Concentrix (CNXC) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: 2.41%
• Average Volume (3M): 513.85K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.02
• Revenue Growth: 21.67%
• EPS Growth: -17.91%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): 2.79
• Shares Outstanding: 63,883,476
• 10 Day Avg. Volume: 603,721
• 30 Day Avg. Volume: 513,846
• PEG Ratio: 2.01
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.64
• Enterprise Value/Market Cap: 2.29
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $67.20
• Price Target Upside: 21.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $64.00 ▲(15.69%Upside)

Concentrix's strong financial performance, positive technical indicators, and optimistic earnings call guidance contribute to a robust stock score. The company demonstrates effective debt management and growth in strategic areas like AI deployment. While valuation is reasonable, attention is needed for flat sector performance and upcoming debt maturities.

Positive Factors

Earnings Performance

Fiscal Q1/25 non-GAAP EPS of $2.79 exceeded both the forecast and the FactSet consensus.

Market Position

The company is targeting a large addressable market that includes the core Customer Experience BPO market and the digital IT services market.

Revenue Growth

The strong sales pipeline and new generative AI services are expected to generate sequential revenue growth.

Negative Factors

Earnings Shortfall

Fiscal Q4/24 adjusted EBITDA was 3% less than forecast, indicating a shortfall in expected earnings.

Operating Margin

Guidance for the next quarter implies a slight deceleration in operating margin from 13.6% to 13.4%.

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 shows strong revenue growth and effective debt management, positioning it well within the Information Technology Services industry. While profitability metrics indicate some pressure, the company's robust cash flow generation provides a buffer against potential risks. Continued focus on margin improvements and maintaining healthy cash reserves will be key to future financial stability.

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
9.59B	9.62B	7.11B	6.32B	5.59B	4.72B
	Gross Profit
3.27B	3.45B	2.58B	2.26B	1.97B	1.66B
	EBIT
648.38M	596.39M	661.33M	365.54M	301.57M	39.64M
	EBITDA
1.17B	596.39M	971.97M	981.09M	831.92M	579.22M
	Net Income Common Stockholders
269.37M	251.22M	313.84M	435.05M	405.58M	164.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
308.00M	240.57M	295.34M	145.38M	182.04M	152.66M
	Total Assets
11.90B	11.99B	12.49B	6.67B	5.05B	5.18B
	Total Debt
4.90B	4.74B	4.94B	2.22B	802.02M	1.15B
	Net Debt
4.59B	4.50B	4.65B	2.08B	619.98M	992.46M
	Total Liabilities
7.86B	7.95B	8.35B	3.97B	2.43B	2.88B
	Stockholders Equity
4.03B	4.04B	4.14B	2.70B	2.62B	2.30B
Cash Flow		Free Cash Flow
482.45M	428.73M	497.48M	460.70M	365.10M	336.28M
	Operating Cash Flow
715.77M	667.49M	678.01M	600.72M	514.18M	507.61M
	Investing Cash Flow
-234.99M	-244.27M	-2.11B	-1.84B	-78.65M	-109.22M
	Financing Cash Flow
-404.68M	-492.53M	1.80B	1.24B	-401.87M	-335.22M

Concentrix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 55.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 55.32 is below the 20-day moving average (MA) of 56.17, above the 50-day MA of 52.51, and above the 200-day MA of 49.79, indicating a neutral trend. The MACD of 0.97 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 65.94 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
CTSH	76 Outperform	$39.66B	16.62	16.61%	1.57%	4.09%	14.05%
CNXC	76 Outperform	$3.65B	13.85	6.34%	2.41%	21.67%	-17.91%
G	75 Outperform	$7.51B	14.61	22.21%	1.58%	7.31%	-15.86%
WNS	75 Outperform	$2.77B	15.37	21.21%	―	-0.64%	30.96%
ASGN	66 Neutral	$2.26B	14.71	8.65%	―	-8.05%	-18.60%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
DXC	46 Neutral	$2.89B	7.39	12.88%	―	-5.65%	78.20%

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.