Concentrix Corporation (CNXC) DCF Valuation & Fundamental Primer
Concentrix Corporation (CNXC) currently trades at — with an enterprise value of $11.63B. Our proprietary institutional model rates Concentrix Corporation at 63/100 (Grade: B · Mixed Fundamental Profile).
Institutional fundamental teardown of Concentrix Corporation (CNXC) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Concentrix Corporation (CNXC) 3-Scenario DCF Valuation Range
Stress-test CNXC's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: —).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $386.87 N/M | $416.10 N/M | $450.21 N/M | $490.52 N/M | $538.90 N/M |
| 9.3% | $339.37 N/M | $362.40 N/M | $388.85 N/M | $419.52 N/M | $455.53 N/M |
| 10.0% | $300.34 N/M | $318.85 N/M | $339.84 N/M | $363.83 N/M | $391.50 N/M |
| 10.8% | $267.71 N/M | $282.85 N/M | $299.82 N/M | $318.99 N/M | $340.80 N/M |
| 11.5% | $240.03 N/M | $252.59 N/M | $266.54 N/M | $282.13 N/M | $299.67 N/M |
Institutional Software Quality Scorecard (63/100 · Grade B)
Viable recurring software business but carries notable dilution, lower margins, or higher leverage.
Solid cash generation with minor working capital absorption
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- Low dilution friction: SBC is only 1.0% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (35.9%), indicating higher hosting or service delivery drag
Concentrix Corporation (CNXC) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $9.62B | $9.62B | $11.49B | $13.73B | $16.41B | $19.60B | $23.42B |
| Gross Profit | $3.45B | $3.45B | $4.12B | $4.92B | $5.88B | $7.03B | $8.40B |
| Operating Income (EBIT) | $596.4M | $596.4M | $712.5M | $851.3M | $1.02B | $1.22B | $1.45B |
| Stock-Based Compensation (SBC) | $96.1M | $96.2M | $114.9M | $137.3M | $164.1M | $196.0M | $234.2M |
| Unlevered Free Cash Flow (FCF) | $428.7M | $429.0M | $512.6M | $612.4M | $731.7M | $874.3M | $1.04B |
| SBC-Adjusted True Cash Flow | $332.7M | $332.8M | $397.6M | $475.1M | $567.7M | $678.2M | $810.4M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -30.2 + 0.82 × (Rule of 40) · R² = 79%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Concentrix Corporation | CNXC | — | $9.62B | 35.9% | 4.5% | 23.9% | 1.0% | — |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 0.6× | $6.08B | $1.59B | $25.00 | 0.0% |
| -20% Multiple Compression | 0.5× | $4.87B | $372.5M | $5.86 | -20.0% |
| -35% Multiple Compression | 0.4× | $3.95B | $0 | $0.00 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $48.09B | $43.60B | $685.81 | +690.5% |
Frequently Asked Questions: Concentrix Corporation (CNXC) Valuation
What is Concentrix Corporation (CNXC)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Concentrix Corporation (CNXC) has a Base Case implied value of N/A per share (with a Bear Case of N/A and a Bull Case of N/A), compared to its current price of market price. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Concentrix Corporation (CNXC)'s Rule of 40 score and Free Cash Flow margin?
Concentrix Corporation achieves a Rule of 40 score of 23.9%, combining a 19.5% revenue growth run-rate with a 4.5% TTM free cash flow margin on $9.62B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into CNXC stock according to Reverse-DCF analysis?
At market price per share (Enterprise Value of N/A), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 19.5%, compared to Concentrix Corporation's historical CAGR of 19.5%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does Concentrix Corporation compare to Software & Cloud Services software peers?
Concentrix Corporation (CNXC) earns an institutional Software Quality Score of 63/100 (Grade B — Mixed Fundamental Profile). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Concentrix Corporation (CNXC)'s valuation?
Concentrix Corporation recorded $96.1M in TTM stock-based compensation (1.0% of revenue). When treating SBC as a cash-equivalent compensation expense, Concentrix Corporation's SBC-adjusted free cash flow yield is evaluated directly in our 3-statement model, scoring 25/25 on our Shareholder Dilution Friction pillar.