📊 CNXC Key Takeaways
Is Concentrix Corp (CNXC) a Good Investment?
Concentrix demonstrates stable operational cash generation and maintains profitability, but faces significant headwinds with razor-thin 1.5% net margins, stagnant growth at 2.2% revenue YoY, and deteriorating returns (ROE 2.8%, ROA 0.7%). High leverage at 1.46x debt-to-equity combined with weak profitability creates material downside risk if business conditions worsen.
Concentrix remains profitable and is generating positive free cash flow, but revenue and net income growth are nearly flat while operating, net, and free-cash-flow margins are weak. High debt relative to equity, limited cash, and only modest liquidity reduce financial flexibility and make the quality of current growth unattractive.
Concentrix Corp Key Strengths (CNXC)
- Positive free cash flow generation of $72.6M despite low margins provides financial flexibility
- Reasonable gross margins of 33.7% indicate acceptable underlying business unit economics
- Adequate liquidity position with 1.18x current ratio and $255.6M cash to service debt obligations
- Revenue increased 2.2% year over year
- Gross margin remains meaningful at 33.7%
- Operations generated $174.67 million of cash flow and $72.59 million of free cash flow
CNXC Stock Risks: Concentrix Corp Investment Risks
- Critically thin net margin of 1.5% leaves minimal buffer for operational disruptions or margin compression
- High leverage of 1.46x debt-to-equity alongside declining profitability constrains financial flexibility and refinancing options
- Stagnant growth trajectory (2.2% revenue, 0.3% net income) indicates mature market saturation with limited organic expansion potential
- Operating margin of 4.3% and net margin of 1.5% indicate thin profitability
- Long-term debt of $3.93 billion is substantial relative to $2.70 billion of equity and $255.57 million of cash
- Low ROE, low ROA, weak free-cash-flow conversion, and anomalous reported EPS growth signal poor earnings quality
Key Metrics to Watch
- Operating margin trend—must demonstrate improvement from current 4.3% level to justify leverage
- Free cash flow sustainability and conversion ratio—any deterioration in cash generation signals deteriorating business quality
- Debt reduction progress relative to EBITDA—leverage must decrease as growth remains constrained
- Free cash flow margin and debt reduction
- Operating margin and interest coverage
Concentrix Corp (CNXC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility.
CNXC Profit Margin, ROE & Profitability Analysis
CNXC vs Services Sector: How Concentrix Corp Compares
How Concentrix Corp compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Concentrix Corp Stock Overvalued? CNXC Valuation Analysis 2026
Based on fundamental analysis, Concentrix Corp shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Concentrix Corp Balance Sheet: CNXC Debt, Cash & Liquidity
CNXC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Concentrix Corp's revenue has grown significantly by 76% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.70 reflects profitable operations.
CNXC Revenue Growth, EPS Growth & YoY Performance
CNXC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.4B | $42.1M | $0.63 |
| Q1 2026 | $2.4B | $21.6M | $0.33 |
| Q3 2025 | $2.4B | $16.6M | $0.25 |
| Q2 2025 | $2.4B | $42.1M | $0.63 |
| Q1 2025 | $2.4B | $52.1M | $0.76 |
| Q3 2024 | $1.6B | $16.6M | $0.25 |
| Q2 2024 | $1.6B | $66.8M | $0.98 |
| Q1 2024 | $1.6B | $52.1M | $0.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Concentrix Corp Dividends, Buybacks & Capital Allocation
CNXC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Concentrix Corp (CIK: 0001803599)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CNXC
What is the AI rating for CNXC?
Concentrix Corp (CNXC) has a Combined AI Grade of C from Claude (B) and ChatGPT (C) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNXC's key strengths?
Claude: Positive free cash flow generation of $72.6M despite low margins provides financial flexibility. Reasonable gross margins of 33.7% indicate acceptable underlying business unit economics. ChatGPT: Revenue increased 2.2% year over year. Gross margin remains meaningful at 33.7%.
What are the risks of investing in CNXC?
Claude: Critically thin net margin of 1.5% leaves minimal buffer for operational disruptions or margin compression. High leverage of 1.46x debt-to-equity alongside declining profitability constrains financial flexibility and refinancing options. ChatGPT: Operating margin of 4.3% and net margin of 1.5% indicate thin profitability. Long-term debt of $3.93 billion is substantial relative to $2.70 billion of equity and $255.57 million of cash.
What is CNXC's revenue and growth?
Concentrix Corp reported revenue of $5.0B.
Does CNXC pay dividends?
Concentrix Corp pays dividends, with $46.2M distributed to shareholders in the trailing twelve months.
Where can I find CNXC SEC filings?
Official SEC filings for Concentrix Corp (CIK: 0001803599) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CNXC's EPS?
Concentrix Corp has a diluted EPS of $1.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CNXC's fundamental grade?
Based on our AI fundamental analysis in August 2026, Concentrix Corp has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CNXC stock overvalued or undervalued?
Valuation metrics for CNXC: ROE of 2.8% (sector avg: 16%), net margin of 1.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CNXC's AI grade for 2026?
Our dual AI analysis gives Concentrix Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CNXC's free cash flow?
Concentrix Corp's operating cash flow is $174.7M, with capital expenditures of $102.1M. FCF margin is 1.5%.
How does CNXC compare to other Services stocks?
Vs Services sector averages: Net margin 1.5% (avg: 10%), ROE 2.8% (avg: 16%), current ratio 1.18 (avg: 1.5).