As of June 9, 2025, Concentrix Corp has a Discounted Cash Flow (DCF) derived fair value of $91.92 per share. With the current market price at $56.61, this represents a potential upside of 62.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $63.47 |
| DCF Fair Value (10-year) | $91.92 |
| Potential Upside (5-year) | 12.1% |
| Potential Upside (10-year) | 62.4% |
| Discount Rate (WACC) | 6.2% - 8.0% |
Revenue is projected to grow from $9619 million in 11-2024 to $15659 million by 11-2034, representing a compound annual growth rate of approximately 5.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 11-2024 | 9619 | 35% |
| 11-2025 | 9765 | 2% |
| 11-2026 | 10004 | 2% |
| 11-2027 | 10212 | 2% |
| 11-2028 | 10942 | 7% |
| 11-2029 | 11752 | 7% |
| 11-2030 | 12843 | 9% |
| 11-2031 | 13866 | 8% |
| 11-2032 | 14434 | 4% |
| 11-2033 | 14723 | 2% |
| 11-2034 | 15659 | 6% |
Net profit margin is expected to improve from 3% in 11-2024 to 2% by 11-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 11-2024 | 251 | 3% |
| 11-2025 | 222 | 2% |
| 11-2026 | 227 | 2% |
| 11-2027 | 232 | 2% |
| 11-2028 | 248 | 2% |
| 11-2029 | 267 | 2% |
| 11-2030 | 292 | 2% |
| 11-2031 | 315 | 2% |
| 11-2032 | 328 | 2% |
| 11-2033 | 334 | 2% |
| 11-2034 | 356 | 2% |
with a 5-year average of $176 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 11-2025 | 195 |
| 11-2026 | 219 |
| 11-2027 | 246 |
| 11-2028 | 269 |
| 11-2029 | 285 |
| 11-2030 | 302 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 83 |
| Days Inventory | 0 |
| Days Payables | 15 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 617 | 62 | 198 | 187 | 171 |
| 2026 | 863 | 84 | 271 | 71 | 437 |
| 2027 | 904 | 86 | 276 | (51) | 593 |
| 2028 | 974 | 92 | 296 | 200 | 385 |
| 2029 | 1042 | 99 | 318 | 156 | 469 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 63.47 | 12.1% |
| 10-Year DCF (Growth) | 91.92 | 62.4% |
| 5-Year DCF (EBITDA) | 166.07 | 193.4% |
| 10-Year DCF (EBITDA) | 187.62 | 231.4% |
Is Concentrix Corp (CNXC) a buy or a sell? Concentrix Corp is definitely a buy. Based on our DCF analysis, Concentrix Corp (CNXC) appears to be significantly undervalued with upside potential of 62.4%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $56.61.