Core & Main Inc. Class A Common Stock (CNM)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $464 million in annual free cash flow (4.8% yield on market cap)
• High return on equity of 24.0% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($23) with negative 109% margin of safety—limited downside protection
• Revenue declining at 6.9% year-over-year signals potential demand weakness or market share loss

AI Analysis

Core & Main Inc. Class A Common Stock is a small-cap industrials company valued at $9.6 billion. The business generates $7.6 billion in annual revenue with a 0.9% net margin and $464 million in free cash flow. From a quality standpoint, Core shows Altman Z-Score of 2.2 in the grey zone and strong 24% ROE. On valuation, the stock is reasonably priced at 21.2x earnings, with trades far above its Graham Number ($23) with no margin of safety. Growth dynamics show revenue growing at -6.9% and profit growth of 9.4%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $464 million in annual free cash flow (4.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer