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1. Company Snapshot

1.a. Company Description

Concentrix Corporation provides technology-infused customer experience (CX) solutions worldwide.The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services.It also offers customer lifecycle management; customer experience/user experience strategy and design; digital transformation; and voice of the customer and analytics solutions.


The company's clients include consumer electronics, technology, e-commerce, and health insurance companies, as well as global IPOs, social brands, and banks.Concentrix Corporation was incorporated in 2009 and is based in Fremont, California.

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1.b. Last Insights on CNXC

Breaking News: Concentrix Corporation has been identified as an undervalued pick with solid growth potential heading into 2026, alongside IVZ, HRMY, PAX, and GPN, based on a low price-to-book screen. The company's financials are being compared to Brookfield Business Partners, with factors such as analyst recommendations, earnings, risk, valuation, profitability, institutional ownership, and dividends being considered. Concentrix's recent financial standing has garnered attention, with some analysts viewing it as a viable option. Analysts at various firms have given recommendations on the stock.

1.c. Company Highlights

2. Concentrix Corporation's FY 2025 Earnings: A Strong Performance

Concentrix Corporation reported a robust financial performance for its fourth quarter and fiscal year 2025. The company delivered revenue of $2.55 billion in Q4, representing 3.1% constant currency growth, and 2.1% growth for the full year, driven by high-complexity work, wallet share gains, and leveraging its own IP investments. For the full year, the company achieved breakeven profitability with its IXSuite AI platform, generating over $60 million in annualized AI revenue. The actual EPS for the quarter came out at $2.95, slightly beating estimates of $2.93.

Publication Date: Jan -14

📋 Highlights
  • Revenue Growth and Drivers:: Q4 revenue reached $2.55 billion (3.1% constant currency growth), with full-year growth of 2.1%, driven by high-complexity work, wallet share gains, and IP investments.
  • AI Platform Breakthrough:: IXSuite AI achieved breakeven profitability in 2025, contributing $60 million in annualized revenue, while adjusted free cash flow surged 32% to $626 million.
  • 2026 Guidance:: Revenue expected to rise 1.5–3% to $10.035–10.18 billion, with non-GAAP operating income projected at $1.24–1.29 billion and adjusted free cash flow of $630–650 million.
  • Margin Improvements:: Anticipated margin expansion in H2 2026 from automation, capacity optimization, and transformational deals, including $95 million invested in new capabilities and facilities.
  • Strategic Priorities:: Focus on high-margin verticals (data annotation, compliance) and client consolidation, with a 3% growth headwind from low-complexity work offset by long-term quality-driven revenue growth.

Revenue Growth and Profitability

The company's revenue growth was driven by its focus on high-complexity work and investments in its own IP. The IXSuite AI platform achieved breakeven profitability, with annualized AI revenue exceeding $60 million. The company's adjusted free cash flow reached a record $626 million, up 32% from the prior year, and returned $258 million to shareholders through dividend and share repurchases.

Guidance and Outlook

For 2026, Concentrix expects reported revenue of $10.035 billion to $10.18 billion, implying constant currency revenue growth of 1.5% to 3%. Non-GAAP operating income is expected to be $1.24 billion to $1.29 billion, and non-GAAP EPS is expected to be $11.48 to $12.07. The company guides for low single-digit revenue growth in fiscal 2026 on a constant currency basis, with the traditional CX market being flat, while other services grow at mid-single digits, and some services grow at high single digits.

Valuation and Metrics

Using the current valuation metrics, the company's P/E Ratio stands at -1.9, P/B Ratio at 0.89, and P/S Ratio at 0.25. The Dividend Yield is 3.47%, and the Free Cash Flow Yield is 20.71%. Analysts estimate next year's revenue growth at 3.6%. The company's focus on driving quality revenue and its global footprint providing access to a robust talent pool should help it be seen as a valued partner to its clients. Christopher A. Caldwell mentioned that the company has been selective in the types of work it takes on, prioritizing complex projects that drive value for clients and create sticky relationships.

Future Prospects

The company expects margin improvement in the back half of the year as it completes working through overcapacity issues, implements transformational deals, and drives automation efforts. It guides conservatively, focused on each quarter and the full year. With its pure AI platform growing and a run rate of $60 million exiting fiscal 2025, the company is well-positioned for future growth. The company's capital allocation priority remains balanced, with expectations to spend similar to fiscal year 2025 on share repurchases.

3. NewsRoom

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5 Low Price-to-Book Stocks That Are Worth Watching in February

Feb -02

Source: zacks.com

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Financial Comparison: Brookfield Business Partners (NYSE:BBU) & Concentrix (NASDAQ:CNXC)

Feb -02

Source: defenseworld.net

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4 Value Stocks to Consider as Tech Volatility Weighs on Wall Street

Jan -30

Source: zacks.com

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Wall Street's Favorite Under-the-Radar AI Stock for 2026

Jan -29

Source: fool.com

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Concentrix: Deeply Undervalued With Improving Profitability

Jan -20

Source: seekingalpha.com

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Concentrix - Webhelp Write Off Sinks 2025, Where To Now?

Jan -14

Source: seekingalpha.com

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Concentrix Q4 Earnings Call Highlights

Jan -14

Source: defenseworld.net

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Concentrix Corporation (CNXC) Q4 2025 Earnings Call Transcript

Jan -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.38%)

6. Segments

Technology and Consumer Electronics

Expected Growth: 12%

Concentrix Corporation's Technology and Consumer Electronics segment growth of 12% is driven by increasing demand for digital transformation, cloud adoption, and IoT integration. Additionally, the rise of e-commerce, social media, and online marketplaces fuels growth in consumer electronics. Furthermore, the need for efficient supply chain management and customer experience enhancement also contributes to this growth.

Retail, Travel and Ecommerce

Expected Growth: 8%

Concentrix Corporation's 8% growth in Retail, Travel, and Ecommerce is driven by increasing online shopping adoption, rising demand for digital customer experience, and growing need for omnichannel support. Additionally, the shift towards cloud-based solutions, investments in AI-powered chatbots, and expansion into new markets also contribute to this growth.

Communications and Media

Expected Growth: 9%

Concentrix Corporation's Communications and Media segment growth of 9% is driven by increasing demand for digital transformation, cloud-based services, and cybersecurity solutions. Additionally, the rise of 5G networks, IoT devices, and streaming services fuels growth in this segment. Furthermore, the company's strategic acquisitions and partnerships have expanded its capabilities, enabling it to capitalize on emerging trends and opportunities.

Banking, Financial Services and Insurance

Expected Growth: 7%

Concentrix Corporation's 7% growth in Banking, Financial Services and Insurance is driven by increasing demand for digital transformation, regulatory compliance, and customer experience enhancement. Additionally, the need for cost reduction, process automation, and risk management are key factors contributing to this growth.

Healthcare

Expected Growth: 11%

Concentrix Corporation's 11% growth in Healthcare is driven by increasing demand for outsourcing services, expansion into new markets, and strategic acquisitions. The company's expertise in claims processing, benefits administration, and patient engagement has enabled it to capitalize on the growing need for cost-effective and efficient healthcare management solutions.

Other

Expected Growth: 6%

Concentrix Corporation's 6% growth is driven by increasing demand for digital transformation services, expansion into high-growth industries, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and investments in emerging technologies such as AI and cloud computing are contributing to its growth momentum.

7. Detailed Products

Customer Experience (CX) Solutions

Concentrix provides customer experience solutions that help businesses deliver exceptional customer service through various channels such as voice, email, chat, and social media.

Business Process Outsourcing (BPO) Services

Concentrix offers BPO services that help businesses outsource non-core functions such as finance and accounting, human resources, and procurement.

Digital Transformation Services

Concentrix provides digital transformation services that help businesses adopt digital technologies such as artificial intelligence, blockchain, and cloud computing.

Analytics and Insights

Concentrix offers analytics and insights services that help businesses make data-driven decisions through advanced analytics and reporting.

Automation and Robotics

Concentrix provides automation and robotics services that help businesses automate repetitive tasks and improve efficiency.

Cloud and Infrastructure Services

Concentrix offers cloud and infrastructure services that help businesses migrate to the cloud and manage their infrastructure.

8. Concentrix Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Concentrix Corporation operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Concentrix Corporation's customers have a high bargaining power due to the availability of substitutes and the company's dependence on a few large clients. This gives customers the power to negotiate prices and terms.

Bargaining Power Of Suppliers

Concentrix Corporation has a diverse supplier base, and no single supplier has a significant impact on the company's operations. This reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the industry is moderate, as there are barriers to entry such as high capital requirements and regulatory hurdles. However, the industry is attractive, and new entrants may still pose a threat to Concentrix Corporation.

Intensity Of Rivalry

The industry in which Concentrix Corporation operates is highly competitive, with many players competing for market share. This leads to a high intensity of rivalry, which can affect the company's pricing power and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.40%
Debt Cost 5.29%
Equity Weight 45.60%
Equity Cost 7.05%
WACC 6.09%
Leverage 119.28%

11. Quality Control: Concentrix Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dolby Laboratories

A-Score: 5.1/10

Value: 3.5

Growth: 3.3

Quality: 8.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

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ExlService

A-Score: 4.9/10

Value: 2.5

Growth: 7.9

Quality: 6.9

Yield: 0.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Concentrix

A-Score: 4.7/10

Value: 9.2

Growth: 6.0

Quality: 4.2

Yield: 4.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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N-able

A-Score: 4.3/10

Value: 5.3

Growth: 8.4

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Kyndryl

A-Score: 3.8/10

Value: 6.3

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Paymentus

A-Score: 3.7/10

Value: 1.4

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.93$

Current Price

39.93$

Potential

-0.00%

Expected Cash-Flows