Latest post - Concentrix $CNXC (Concentrix Corporation)
One of of large, long term holdings currently held at a significant loss. I decided to revisit the investment thesis and see if it still holds.
I am pasting the conclusion below. For the full article - please follow the link:
hugomanenti.substack.com/p/concentrix-ai-roadkill-or-deep-value?utm_source=etoro&utm_medium=social
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My conclusion today remains strangely similar to two years ago.
Concentrix does not need heroic growth to justify a materially higher valuation. It simply needs to: (1) continue growing modestly, (2) execute on its margin guidance, and (3) continue to reduce debt and buy back shares.
The last two years have not been clean: margin guidance was missed repeatedly, and debt reduction has been slower than I would have liked as transition costs crept up. That’s fair criticism.
But the core thesis – that AI would not destroy the business – has held. Revenue is growing. The company is winning new business. AI is being integrated, not resisted. Low-complexity work has been reduced to just 5% of the business. The quality of revenue has never been higher.
I still believe this is a business that is more likely to emerge as an AI winner than an AI casualty. The market is taking much longer than I expected to recognise it – which means my timing was poor.
But at under 3x earnings, with the business still growing and generating significant free cash flow, I remain comfortable holding the position. The next year only needs to show progress on margins for the stock to work very well.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Mon Jun 15 2026 17:08:50 GMT+0000 (Coordinated Universal Time)
