Cash Rich, Low Price – Concentrix Stock to Break Out?

We think Concentrix (CNXC) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.

What Is Happening With CNXC

CNXC is down 15% so far this year and is now available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to a Q3 non-GAAP EPS miss, operating margin contraction due to excess capacity, and subsequently lowered full-year non-GAAP EPS guidance. Concerns also persist regarding its debt-to-equity ratio of approximately 1.10 and interest coverage.

The stock may not reflect it yet, but here is what’s going well for the company. Concentrix exceeded Q3 2025 revenue guidance, growing 4.0% year-over-year, and raised its full-year revenue outlook. This growth stems from strong demand for integrated solutions, with nearly 40% of new client wins incorporating AI technology. The company maintains a healthy adjusted free cash flow target of $585 million to $610 million for FY2025 and increased its quarterly dividend. While its debt-to-equity is around 1.10, management plans to prioritize debt repayment in 2026, contributing to financial momentum.

CNXC Has Strong Fundamentals

• Cash Yield: Concentrix offers an impressive cash flow yield of 23.1%.
• Growing: Revenue growth of 3.4% over the last twelve months is not that great, but your cash pile is likely to grow.
• Valuation Discount: CNXC stock is currently trading at 37% below its 3-month high, 44% below its 1-year high, and 64% below its 2-year high.

Below is a quick comparison of CNXC fundamentals with S&P medians.

*LTM: Last Twelve Months

But What About The Risk Involved?

While CNXC stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. CNXC fell about 18% during the Covid pandemic and took a much bigger hit of nearly 65% in the inflation shock. Even with solid fundamentals, this stock isn’t immune to big sell-offs when the market turns sour. It’s a reminder that no matter how strong the setup, risk can still hit hard in turbulent times. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read CNXC Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell CNXC Stock.

Other Stocks Like CNXC

Not ready to act on CNXC? You could consider these alternatives:

1. DuPont de Nemours (DD)
2. Enphase Energy (ENPH)
3. Stride (LRN)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. Positive revenue growth
3. High free cash flow yield
4. Meaningful discount to 3M, 1Y, and 2Y highs

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
• Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods

A Multi Asset Portfolio Beats Picking Stocks Alone

Stocks can jump or crash but other assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices