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Concentrix Corporation (CNXC)
:CNXC
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Concentrix
(NASDAQ:CNXC)
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Rating:67Neutral
Price Target:
$52.00
▲(9.89% 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 (CNXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.95B
Dividend Yield2.87%
Average Volume (3M)941.45K
Price to Earnings (P/E)10.1
Beta (1Y)1.26
Revenue Growth3.40%
EPS Growth53.13%
CountryUS
Employees450,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.78
Shares Outstanding62,257,440
10 Day Avg. Volume624,862
30 Day Avg. Volume941,449
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.72
Price to Sales (P/S)0.30
P/FCF Ratio6.81
Enterprise Value/Market Cap2.88
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda10.08
Forecast
1Y Price Target
$64.60Price Target Upside36.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Concentrix Business Overview & Revenue Model
Company DescriptionConcentrix (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 MoneyConcentrix 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 Earnings Call Summary
Earnings Call Date:Sep 25, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 21, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and strategic successes in AI integration and vertical markets such as banking and media. However, these positive aspects were offset by significant challenges in margin performance due to excess capacity, tariff impacts, and increased investments, leading to an adjusted free cash flow outlook. The sentiment is mixed, with optimism for future growth tempered by current operational challenges.Q3-2025 Updates
Positive Updates
Exceeding Revenue Guidance
Concentrix exceeded its revenue guidance once again, demonstrating solid year-on-year growth with a revenue increase of 4% year-on-year as reported and 2.6% on a constant currency basis.
Strong Performance in Banking, Financial Services, and Insurance
Revenue from banking, financial services, and insurance clients grew by 8% year-on-year, leading the growth in the quarter.
Media and Communications Growth
Media and communications clients grew by 7% year-on-year, primarily driven by clients outside of the US and global entertainment/media companies.
Retail, Travel, and E-commerce Growth
Revenue from retail, travel, and e-commerce clients grew by 3%, largely driven by strong performance in the travel sector.
AI Integration Success
40% of new wins this year include AI technology platforms, with increased success rates in AI projects when externally sourced, showing a strong market position in AI integration.
Dividend Increase
The Board authorized an increase to the quarterly dividend to $0.36 per share.
Negative Updates
Below Plan Margins
Non-GAAP operating income was $105 million, below the guidance range due to excess capacity and slow client volume consolidation.
Impact of Excess Capacity and Tariffs
Margins were negatively impacted by excess capacity due to slower than expected client volume return and tariff-related headwinds.
Additional Investments in Cybersecurity
Year-on-year non-GAAP operating income was impacted by $8 million in additional investments in cybersecurity for generative AI.
Negative Currency Impact
There was a $4 million negative currency impact on non-GAAP operating income.
Free Cash Flow Guidance Adjustment
Free cash flow guidance was adjusted due to margin pressures and a drop in profitability expectations for the full year.
Company Guidance
During the Concentrix Third Quarter 2025 Earnings Call, the company provided detailed financial guidance and insights into its operational performance. Concentrix reported a revenue of approximately $2.48 billion, marking a 2.6% year-on-year increase on a constant currency basis and a 4% increase as reported. The company also discussed non-GAAP measures, with a non-GAAP operating income of $105 million and an adjusted EBITDA of $359 million, resulting in a margin of 14.5%. Non-GAAP diluted earnings per share were $2.78, slightly below the guidance range. The company emphasized its strong revenue momentum, driven by its integrated AI, CX, and IT solutions, with 40% of new wins incorporating its AI technology platforms. Concentrix also highlighted its strategic focus on higher-margin, complex solutions and its ongoing efforts to improve margins sequentially. Looking forward, the company projected Q4 revenue between $2.525 billion to $2.55 billion and full-year revenue for 2025 between $9.798 billion to $9.823 billion. Concentrix also updated its full-year adjusted free cash flow expectations to between $585 million to $610 million, an increase from the previous year.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.85
Very Positive
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.70
Positive
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.78
Positive
| 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
Neutral
47.32
Price Trends
50.16
Negative
52.35
Negative
50.75
Negative
Market Momentum
-1.36
Negative
47.81
Neutral
77.35
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 47.32 is above the 20-day moving average (MA) of 46.64, below the 50-day MA of 50.16, and below the 200-day MA of 50.75, indicating a neutral trend. The MACD of -1.36 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNXC.
Concentrix Risk Analysis
Concentrix disclosed 27 risk factors in its most recent earnings report. Concentrix 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
Concentrix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ― | ― | 21.23% | ― | 1.94% | 26.15% | |
76 Outperform | $33.38B | 13.81 | 16.69% | 1.81% | 6.34% | 12.16% | |
76 Outperform | $6.93B | 13.20 | 21.86% | 1.67% | 7.37% | -14.64% | |
74 Outperform | $69.62B | 22.06 | 29.15% | 2.90% | 4.62% | 1.06% | |
68 Neutral | $8.71B | 22.35 | 11.36% | ― | 9.73% | -0.29% | |
67 Neutral | $2.95B | 10.06 | 7.08% | 2.87% | 3.40% | 53.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CNXC
Concentrix
47.59
3.88
8.88%
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INFY
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WNS
WNS
76.48
29.27
62.00%
Concentrix Corporate Events
Executive/Board Changes
Olivier Duha Resigns from Concentrix Board of Directors
Neutral
Jun 5, 2025
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.
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.