Présentation de l'entreprise
Core & Main, Inc. operates within the industrial distribution sector, specifically focusing on the United States market for water, wastewater, storm drainage, and fire protection products along with related services. Its extensive portfolio encompasses pipes, valves, hydrants, and fittings essential for service, repair, and replacement applications. The company is a significant entity within the Industrials sector, classified under Industrial Distribution, reflecting its specialized role in supplying critical infrastructure components. With a market capitalization of $10.05 billion and annual revenue reaching $7.65 billion, Core & Main, Inc. employs a workforce of 5,600 individuals. These financial figures indicate a substantial operational scale, positioning the firm as a major player capable of leveraging its distribution network to serve a wide array of municipal and industrial clients while maintaining a robust presence in the capital markets.
Santé financière
The company reported a total revenue of $7.65 billion over the trailing twelve months, generating a net income of $441.00 million and an EBITDA of $914.00 million. The substantial gap between revenue and net income, where $441 million in profit is derived from $7.65 billion in sales, reveals a cost structure characterized by significant operating expenses and a compressed profit margin relative to total sales volume. The firm generated free cash flow of $464.25 million, which provides a critical buffer for financial flexibility, allowing the management to fund capital expenditures, manage working capital cycles, or pursue strategic acquisitions without immediate reliance on external financing. Analysis of the three key margins shows a gross margin of 26.9%, an operating margin of 7.5%, and a profit margin of 5.8%, indicating that while the company maintains healthy gross profitability on its sales, operating leverage and other costs significantly impact the final bottom line. Regarding liquidity and leverage, the company holds $230.00 million in cash against $2.46 billion in debt, resulting in a debt-to-equity ratio of 118.47, which suggests a highly leveraged balance sheet typical for capital-intensive distribution businesses. The current ratio stands at 2.63, indicating that the company possesses sufficient current assets to cover its short-term liabilities more than twice over, thereby ensuring strong short-term liquidity despite its high debt levels. Furthermore, the return on equity is 24.0% while the return on assets is 7.5%, revealing that management generates high returns on shareholder capital, partly due to the leveraged structure, but produces lower returns on the total asset base when considering the full capital employed.
Évaluation de la valorisation
Core & Main, Inc. trades with a trailing twelve-month P/E ratio of 22.25 and a forward P/E of 17.22, implying that the market expects earnings growth that would allow the stock to re-rate from its current multiple to a lower multiple in the future. The price-to-book ratio is 4.86, indicating that the market values the company at nearly five times its tangible book value, reflecting a premium assigned to its distribution network, brand, and recurring revenue streams. Alternative valuation metrics such as a price-to-sales ratio of 1.31 and an EV/EBITDA of 13.10 suggest that investors are willing to pay a moderate premium for revenue and earnings power relative to peers in the industrial distribution space. The stock has exhibited a trading range between a 52-week low of $43.50 and a 52-week high of $67.18, and without the current share price explicitly listed in the provided facts, the valuation context relies on these historical bounds to gauge relative positioning within the recent trading cycle. The beta value is recorded at 1.00, which signifies that the stock's price volatility generally moves in tandem with the broader market, offering investors a risk profile that mirrors the systematic risk of the overall equity index.
Growth & Income
The company experienced a revenue growth rate of -6.9% year-over-year while simultaneously posting earnings growth of 9.1% year-over-year. This divergence indicates that earnings are growing significantly faster than revenue, a phenomenon often driven by margin expansion, cost efficiencies, or a shift in the product mix toward higher-margin items rather than sheer volume growth. As a non-dividend payer, the company maintains a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm currently reinvests all of its earnings back into the business to fund growth initiatives, debt reduction, or share buybacks rather than distributing cash to shareholders. Consequently, the overall growth and income profile for Core & Main, Inc. is defined by capital appreciation potential driven by internal growth strategies and operational leverage rather than current income generation through dividends, with the negative revenue growth offset by strong profitability improvements.