CNXC

Concentrix is a global CX/BPO outsourcer that, post-Webhelp, has scaled revenue to $9.83B but growth has stalled to +2.2% — a sharp deceleration from the double-digit, acquisition-fueled gains of FY2021–FY2024. The headline FY2025 net loss of -$1.28B (EPS -$20.36) looks catastrophic, but it is not a cash event: operating income was -$918M while operating cash flow actually rose 20.9% to $807M and gross profit held flat at $3.44B (35.0% gross margin). The loss is overwhelmingly a non-cash writedown — the company paid ~$3.77B for Webhelp in 2023 and the operating-income swing signals a large goodwill/intangible impairment marking that deal down. That is both reassuring (cash generation is intact) and damning (management/auditors are conceding Webhelp's value and growth won't materialize as underwritten). Retained earnings have flipped negative to -$177M.

On cash, the stock is extraordinarily cheap: at a $1.55B market cap the P/S is 0.2, and FCF (OCF $807M less capex $234M ≈ $573M) implies roughly 2.7x FCF — a ~37% FCF yield. Management is returning that cash, with $169M of buybacks (shares down 4.3%) and $89.6M of dividends, comfortably covered. For a deep-value investor this is the entire bull case.