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Core & Main: Accelerating Earnings And Attractive Valuation, But Don't Get Overly Excited

Apr. 01, 2022 7:46 AM ETCore & Main, Inc. (CNM)FERG3 Comments
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Beersheba Research


  • Core & Main announced very strong 2021 fourth-quarter and full-year results, and its valuation appears attractive.
  • The high PVC commodity prices, supply chain issues, and product shortages that drove strong earnings may be moderating, creating risk of a short-term pullback that is difficult to model.
  • My original thesis for investing in Core & Main continues to hold, and the long-term outlook continues to be attractive.
  • I would refrain from aggressively adding to my position until commodity prices stabilize, and the company's normalized earnings power becomes clearer.

Tunnel worker examines pipeline in underground tunnel

Vladimir Zapletin/iStock via Getty Images

My original thesis

The investment thesis for Core & Main (NYSE:CNM) continues to hold up (figure 1). Instead of re-hashing the thesis in this article, I encourage you to refer to my original

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Beersheba Research profile picture
I strive to unearth less obvious, overlooked, or under-appreciated but intriguing and potentially profitable data-driven insights into companies of service to society.   I write to understand, identify deficiencies in, and share my thinking, and would be most appreciative if you call out blind spots, flaws, or gaps in my observations or reasoning. Hope you enjoy my contributions, but please do not take them as investment advice!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (3)

High debt load, weak cash position, bear market.
Great article.
Nice comprehensive article
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