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Cornerstone Building Brands Q3 Earnings: Is NYSE:CNR Expensive at 338.1x Forward P/E?

in EARNINGS/INVESTING IDEAS by

Cornerstone Building Brands, Inc. (NYSE:CNR) is scheduled to report Q3 earnings results after markets close for trading on November 10, 2020.

The company is expected to report earnings of $0.30/share on revenue of $1.201 billion. The consensus earnings per share (EPS) of $0.30/share is based on a poll of 4 analysts and represents a growth in eps of 0.8% over the same quarter last year, when the company reported earnings of $0.30/share.

The revenue forecast of $1.201 billion based on a poll of 3 analysts implies a year-over-year (YoY) decline in revenue of −6.6%. Last year the company reported $1.285 billion in revenue for the quarter.

Expected to report EPS growth of 0.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,200.53 $1,285.04 −6.6%
EPS $0.30 $0.30 0.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Cornerstone Building Brands, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.10 $0.34 448.7% Beat
Q1, 2020 -$0.27 -$1.20 -352.8% Missed
Q4, 2019 $0.06 $0.11 70.0% Beat
Q3, 2019 $0.26 $0.30 13.9% Beat
Q2, 2019 $0.28 $0.26 −8.7% Missed
Q1, 2019 -$0.07 -$0.28 -285.7% Missed
Q4, 2018 $0.53 $0.55 3.4% Beat
Q3, 2018 $0.48 $0.51 7.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 4, 2020, the stock price reacted by increasing 18.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 11, 2020 $7.24 $8.57 18.4% Increase
May 12, 2020 $4.77 $3.97 −16.8% Decline
March 3, 2020 $7.49 $8.13 8.5% Increase
November 6, 2019 $6.87 $6.35 −7.6% Decline

Fundamentals And Technical Analysis

Cornerstone Building Brands, Inc. is currently trading at $8.24/share, up 2.0% for the day. The company is trading at approximately 80.2% of its 52-week high of $10.20/share. The company’s stock price is down −3.9% since the last earnings report and up 1.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CNR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −2.11 and a forward P/E multiple of 338.06.

Cornerstone Building Brands, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.72. The following table summarizes some other key fundamental ratios:

Data as of November 9, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date July 4, 2020
Stock Price (Current) $8.24
P/E Ratio −2.1x
P/E Ratio (Fwd) 338.1x
Price To Sales 0.2x
Total Debt / Total Capital 79.8%
Levered Free Cash Flow $215 million
EV / EBITDA 7.8x

Finbox

Cornerstone Building Brands, Inc. is a small-cap stock with a market capitalization of $1.011 billion and a total enterprise value of $4.514 billion. The company operates in the Industrials sector and the Building Products industry.

Cornerstone Building Brands, Inc., together with its subsidiaries, designs, engineers, manufactures, and markets external building products for the commercial, residential, and repair and remodel construction markets in North America. The company operates through three segments: Commercial, Siding, and Windows. The Commercial segment manufactures and distributes various metal products for the nonresidential construction markets under various brand names through a network of plants and distribution centers. It also provides metal coil coating services for commercial and construction applications. The Siding segment offers vinyl siding and skirting products, steel siding products, vinyl and aluminum soffit products, aluminum trim coils, aluminum gutter coils, aluminum gutters, aluminum and steel roofing accessories, cellular PVC trims and moldings, J-channels, wide crown moldings, window and door trims, F-channels, H-molds, fascia, undersill trims, outside/inside corner posts, rain removal systems, and injection molded designer accents, such as shakes; shingles; scallops; shutters; vents and mounts; vinyl fence; vinyl railing; and stone veneer. The Windows segment provides vinyl, aluminum-clad vinyl, aluminum, wood, and clad-wood windows and patio doors; and steel, wood, and fiberglass entry doors. The company was formerly known as NCI Building Systems, Inc. and changed its name to Cornerstone Building Brands, Inc. in May 2019. Cornerstone Building Brands, Inc. was founded in 1984 and is headquartered in Cary, North Carolina.

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