📊 CNXC Key Takeaways
Is Concentrix Corp (CNXC) a Good Investment?
Concentrix faces severe profitability challenges with negative operating (-9.3%) and net margins (-13.0%), generating a $1.3B net loss despite $9.8B in revenue. While operating cash flow remains positive at $807M and liquidity is adequate, the company's inability to convert revenue to profit, combined with high leverage (1.67x debt-to-equity) and significant insider activity, indicates structural operational problems requiring urgent turnaround actions.
Concentrix shows weak fundamental quality despite modest revenue growth, with deeply negative operating and net margins overwhelming an otherwise solid gross margin profile. Positive operating cash flow and free cash flow provide some support, but elevated leverage and a large earnings collapse suggest the business currently has strained profitability and limited balance-sheet flexibility.
Why Buy Concentrix Corp Stock? CNXC Key Strengths
- Positive free cash flow generation of $572.5M provides financial flexibility
- Adequate liquidity with 1.40x current and quick ratios supporting near-term obligations
- Healthy gross margin of 35% demonstrates pricing power at the production level
- Stable revenue base of $9.8B with modest growth suggesting market demand presence
- Positive operating cash flow and free cash flow indicate the business still converts revenue into cash despite accounting losses
- Gross margin of 35.0% suggests the core service model retains underlying economic value before overhead, restructuring, or non-operating charges
- Liquidity appears adequate with a 1.40x current ratio and 1.40x quick ratio
CNXC Stock Risks: Concentrix Corp Investment Risks
- Severe operating loss of -$918.2M and net loss of -$1.3B indicating unsustainable cost structure
- Negative ROE (-46.6%) and ROA (-11.9%) demonstrate poor capital allocation and asset utilization
- High leverage ratio of 1.67x with $4.6B long-term debt limits financial flexibility during distress
- Unable to calculate interest coverage ratio, suggesting potential debt servicing concerns
- Deteriorating EPS performance (-648.8% YoY) signals worsening shareholder value destruction
- Operating income of -$918.18M and net income of -$1.28B point to severe profitability deterioration
- Debt/Equity of 1.67x with $4.57B of long-term debt raises balance-sheet risk if earnings do not recover
- Diluted EPS fell sharply and returns on equity/assets are deeply negative, signaling poor capital efficiency
Key Metrics to Watch
- Operating margin recovery trajectory and path to positive EBIT
- Debt reduction progress and debt-to-equity ratio improvement
- Net income return to profitability and net margin expansion
- Operating cash flow sustainability and FCF generation consistency
- Insider transaction patterns indicating management confidence in turnaround
- Operating margin recovery and whether losses were one-time or structural
- Free cash flow durability relative to debt reduction needs
Concentrix Corp (CNXC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Concentrix Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $1.6B | $77.6M | $1.49 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNXC's key strengths?
Claude: Positive free cash flow generation of $572.5M provides financial flexibility. Adequate liquidity with 1.40x current and quick ratios supporting near-term obligations. ChatGPT: Positive operating cash flow and free cash flow indicate the business still converts revenue into cash despite accounting losses. Gross margin of 35.0% suggests the core service model retains underlying economic value before overhead, restructuring, or non-operating charges.
What are the risks of investing in CNXC?
Claude: Severe operating loss of -$918.2M and net loss of -$1.3B indicating unsustainable cost structure. Negative ROE (-46.6%) and ROA (-11.9%) demonstrate poor capital allocation and asset utilization. ChatGPT: Operating income of -$918.18M and net income of -$1.28B point to severe profitability deterioration. Debt/Equity of 1.67x with $4.57B of long-term debt raises balance-sheet risk if earnings do not recover.
What is CNXC's revenue and growth?
Concentrix Corp reported revenue of $9.8B.
Does CNXC pay dividends?
Concentrix Corp pays dividends, with $89.6M 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 $-20.36.
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 rating reflects both perspectives for balanced insights.
Is CNXC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Concentrix Corp has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CNXC stock overvalued or undervalued?
Valuation metrics for CNXC: ROE of -46.6% (sector avg: 16%), net margin of -13.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CNXC stock in 2026?
Our dual AI analysis gives Concentrix Corp a combined SELL rating 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 $807.0M, with capital expenditures of $234.5M. FCF margin is 5.8%.
How does CNXC compare to other Services stocks?
Vs Services sector averages: Net margin -13.0% (avg: 10%), ROE -46.6% (avg: 16%), current ratio 1.40 (avg: 1.5).
Is Concentrix Corp carrying too much debt?
CNXC has a debt-to-equity ratio of 1.67x, which is above the Services sector average of 0.7x. However, the current ratio of 1.40 suggests adequate short-term liquidity.