Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Concentrix Corporation (CNXC)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$44.85 - $68.86$56.04
Multi-Stage$97.06 - $106.90$101.88
Blended Fair Value$78.96
Current Price$52.76
Upside49.67%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS0.00%0.00%1.310.990.840.200.000.000.000.000.000.00
YoY Growth--31.99%18.84%308.42%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.90%1.37%0.61%0.10%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)316.11
(-) Cash Dividends Paid (M)89.03
(=) Cash Retained (M)227.08
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)63.2239.5123.71
Cash Retained (M)227.08227.08227.08
(-) Cash Required (M)-63.22-39.51-23.71
(=) Excess Retained (M)163.86187.57203.37
(/) Shares Outstanding (M)63.9863.9863.98
(=) Excess Retained per Share2.562.933.18
LTM Dividend per Share1.391.391.39
(+) Excess Retained per Share2.562.933.18
(=) Adjusted Dividend3.954.324.57
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-2.00%-1.00%0.00%
Fair Value$44.85$56.04$68.86
Upside / Downside-14.99%6.23%30.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)316.11312.95309.82306.72303.65300.62309.64
Payout Ratio28.16%40.53%52.90%65.27%77.63%90.00%92.50%
Projected Dividends (M)89.03126.84163.89200.18235.73270.56286.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)117.74118.95120.15
Year 2 PV (M)141.23144.12147.05
Year 3 PV (M)160.13165.09170.14
Year 4 PV (M)175.05182.31189.78
Year 5 PV (M)186.50196.21206.32
PV of Terminal Value (M)5,429.145,711.856,006.22
Equity Value (M)6,209.806,518.526,839.66
Shares Outstanding (M)63.9863.9863.98
Fair Value$97.06$101.88$106.90
Upside / Downside83.96%93.11%102.62%

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