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CNM Stock Analysis - Core & Main, Inc. AI Rating

CNM NYSE Wholesale-Durable Goods, NEC DE CIK: 0001856525
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-11-02
AI Rating
BUY
72% Confidence

📊 CNM Key Takeaways

Revenue: $6.1B
Net Margin: 6.1%
Free Cash Flow: $351.0M
Current Ratio: 2.26x
Debt/Equity: 1.08x
EPS: $1.94
AI Rating: BUY with 72% confidence

Investment Thesis

CNM demonstrates solid fundamental health with strong revenue growth of 11% YoY and healthy profitability margins across the board. The company generates robust free cash flow ($351M) with a FCF margin of 5.8%, supported by excellent liquidity (2.26x current ratio) and manageable leverage (1.08x debt/equity with 6.6x interest coverage). However, the lack of net income growth and slight EPS decline warrant monitoring to ensure operational leverage improves alongside top-line expansion.

CNM Strengths

  • + Strong revenue growth of 11% YoY indicating market demand and competitive positioning
  • + Solid profitability with consistent margins: 26.9% gross margin, 10% operating margin, 6.1% net margin
  • + Excellent cash generation with $351M free cash flow and healthy 5.8% FCF margin relative to revenue
  • + Strong balance sheet with 2.26x current ratio and 1.35x quick ratio indicating strong liquidity position
  • + Manageable leverage with 1.08x debt/equity and comfortable 6.6x interest coverage ratio
  • + Healthy returns on capital: 18.8% ROE and 5.9% ROA demonstrate efficient use of shareholder capital

CNM Risks

  • ! Net income flat YoY and diluted EPS declined 0.9% despite 11% revenue growth suggests margin compression or expense control issues
  • ! High debt load of $2.1B (1.08x debt/equity) requires continued strong cash generation to service obligations
  • ! Low cash position of $89M relative to $6.3B total assets and $2.1B long-term debt limits financial flexibility
  • ! Wholesale durable goods sector is cyclical and sensitive to economic slowdowns and capital spending trends
  • ! 18 Form 4 insider filings in last 90 days warrant scrutiny to understand insider transaction patterns and sentiment

Key Metrics to Watch

CNM Financial Metrics

Revenue
$6.1B
Net Income
$371.0M
EPS (Diluted)
$1.94
Free Cash Flow
$351.0M
Total Assets
$6.3B
Cash Position
$89.0M

💡 AI Analyst Insight

Strong liquidity with a 2.26x current ratio provides a solid financial cushion.

CNM Profitability Ratios

Gross Margin 26.9%
Operating Margin 10.0%
Net Margin 6.1%
ROE 18.8%
ROA 5.9%
FCF Margin 5.8%

CNM vs Default Sector

How Core & Main, Inc. compares to Default sector averages

Net Margin
CNM 6.1%
vs
Sector Avg 12.0%
CNM Sector
ROE
CNM 18.8%
vs
Sector Avg 15.0%
CNM Sector
Current Ratio
CNM 2.3x
vs
Sector Avg 1.8x
CNM Sector
Debt/Equity
CNM 1.1x
vs
Sector Avg 0.7x
CNM Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CNM Balance Sheet & Liquidity

Current Ratio
2.26x
Quick Ratio
1.35x
Debt/Equity
1.08x
Debt/Assets
67.4%
Interest Coverage
6.64x
Long-term Debt
$2.1B

CNM 5-Year Financial Trend

CNM 5-year financial data: Year 2021: Revenue $5.0B, Net Income $36.0M, EPS $0.55. Year 2022: Revenue $6.7B, Net Income $37.0M, EPS $0.55. Year 2023: Revenue $7.4B, Net Income $74.0M, EPS $0.55.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Core & Main, Inc.'s revenue has grown significantly by 49% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.55 reflects profitable operations.

CNM Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.8%
Free cash flow / Revenue

CNM Quarterly Performance

Quarterly financial performance data for Core & Main, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $2.0B $133.0M $0.69
Q2 2025 $2.0B $119.0M $0.61
Q1 2025 $1.7B $95.0M $0.49
Q3 2024 $1.8B $112.0M $0.65
Q2 2024 $1.9B $110.0M $0.61
Q1 2024 $1.6B $86.0M $0.49
Q3 2023 $1.8B $111.0M $0.65
Q2 2023 $1.9B $110.0M $0.66

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CNM Capital Allocation

Operating Cash Flow
$382.0M
Cash generated from operations
Stock Buybacks
$97.0M
Shares repurchased (TTM)
Capital Expenditures
$31.0M
Investment in assets
Dividends
None
No dividend program

CNM SEC Filings

Access official SEC EDGAR filings for Core & Main, Inc. (CIK: 0001856525)

📋 Recent SEC Filings

Date Form Document Action
Mar 13, 2026 4 xslF345X05/wk-form4_1773444261.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773444255.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773444249.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773444243.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773444237.xml View →

Frequently Asked Questions about CNM

What is the AI rating for CNM?

Core & Main, Inc. (CNM) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CNM's key strengths?

Strong revenue growth of 11% YoY indicating market demand and competitive positioning. Solid profitability with consistent margins: 26.9% gross margin, 10% operating margin, 6.1% net margin.

What are the risks of investing in CNM?

Net income flat YoY and diluted EPS declined 0.9% despite 11% revenue growth suggests margin compression or expense control issues. High debt load of $2.1B (1.08x debt/equity) requires continued strong cash generation to service obligations.

What is CNM's revenue and growth?

Core & Main, Inc. reported revenue of $6.1B.

Does CNM pay dividends?

Core & Main, Inc. does not currently pay dividends.

Where can I find CNM SEC filings?

Official SEC filings for Core & Main, Inc. (CIK: 0001856525) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CNM's EPS?

Core & Main, Inc. has a diluted EPS of $1.94.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-11-02 | Powered by Claude AI