A Brief History of Core & Main, Inc. (CNM)

Foundation and Initial Growth

Core & Main, Inc. was established in 2017 as a spin-off from HD Supply Holdings, Inc., focusing on the distribution of waterworks and plumbing products. The company quickly positioned itself as a leader in the infrastructure and waterworks sector, catering to the needs of municipalities and contractors.

Financial Highlights

In the fiscal year ending January 30, 2021, Core & Main reported revenues of $3.0 billion. By fiscal year 2022, revenues increased significantly to $3.6 billion.

Public Offering and Stock Performance

Core & Main went public on August 4, 2021, with an initial public offering (IPO) price of $18 per share. The stock had a remarkable performance, and by October 2021, the share price surged to approximately $22.50.

Acquisitions and Strategic Growth

• In September 2021, Core & Main acquired H.D. Supply Waterworks for $1.5 billion.
• In March 2022, the company announced the acquisition of Ferguson Enterprises's plumbing distribution assets.

Market Position and Competitors

Core & Main holds a prominent position as one of the largest distributors in the United States, competing with companies such as W.W. Grainger and HD Supply. As of 2023, Core & Main serves over 100,000 customers.

Financial Performance (2020-2023)

Investment and Future Outlook

Analysts project continued revenue growth with estimates of reaching up to $4.5 billion by 2025, benefiting from increased infrastructure spending and demand for sustainable water solutions.

Sustainability Initiatives

Core & Main has committed to enhancing its sustainability practices, aiming to reduce carbon emissions by 30% by 2030 through various initiatives centered around efficient resource management and community engagement.

A Who Owns Core & Main, Inc. (CNM)

Ownership Structure

Core & Main, Inc. (CNM) is primarily owned by institutional investors. As of the latest filings, the ownership percentage breakdown is as follows:

Major Institutional Shareholders

The following table lists the largest institutional shareholders of Core & Main, Inc.:

Insider Ownership

Insider ownership is concentrated among a limited number of executives and board members. The following table shows the key insiders and their respective ownership stakes:

Recent Stock Performance

As of the latest trading data, Core & Main, Inc. (CNM) stock has shown the following performance metrics:

Performance Metrics

Core & Main, Inc. reported the following financial performance metrics for the fiscal year 2023:

Future Ownership Trends

Analyst projections indicate potential shifts in ownership structures, influenced by market conditions and M&A activity. Key trends include:

• Increasing interest from ESG-focused investors.
• Potential for share buybacks by the company.
• Impacts of macroeconomic conditions on institutional investment levels.

Core & Main, Inc. (CNM) Mission Statement

Company Overview

Core & Main, Inc. (CNM) is a leading distributor of waterworks and plumbing products in North America. The company focuses on providing sustainable solutions for water and wastewater systems, enhancing their operational efficiency. As of 2021, CNM reported a revenue of approximately $2.6 billion and has expanded its presence across over 250 locations in the United States.

Mission Statement

The mission of Core & Main, Inc. is to “provide the highest quality products and services to our customers in the waterworks and plumbing industries, enhancing their productivity and sustainability.”

Core Values

• Integrity: Upholding the highest standards of honesty and transparency.
• Customer Focus: Prioritizing the needs and satisfaction of customers.
• Innovation: Continuously seeking new solutions and improvements.
• Sustainability: Committing to environmentally responsible practices.
• Teamwork: Fostering collaboration among employees and partners.

Financial Performance

In 2022, Core & Main, Inc. achieved a net income of $138 million and an EBITDA of $450 million. The earnings per share (EPS) for the fiscal year were reported at $1.15.

Market Position

Core & Main holds a significant share in the North American waterworks market, with an estimated market share of 15%. This position is bolstered by collaborations with key manufacturers and a robust supply chain network.

Employee Engagement

As of 2023, Core & Main employs over 3,000 individuals, with a focus on building a diverse and inclusive workforce. Employee satisfaction ratings indicate a score of 4.5 out of 5 in internal surveys, highlighting strong morale and commitment.

Community Involvement

Core & Main has invested over $1 million in community engagement initiatives in 2023, including support for local water conservation projects and educational programs about sustainable water usage.

Table of Key Financial Metrics

Strategic Goals

• Expand geographic reach: Targeting new markets for distribution.
• Enhance product offerings: Focusing on innovative and sustainable product lines.
• Increase customer engagement: Implementing advanced technology for improved customer service.
• Invest in employee development: Providing ongoing training and career advancement programs.

How Core & Main, Inc. (CNM) Works

Overview

Core & Main, Inc. is a leading distributor of waterworks and plumbing products in the United States, primarily serving the municipal and commercial construction markets. The company operates through a network of branches and offers a comprehensive portfolio of products, including pipes, valves, fittings, and other infrastructure-related supplies.

Financial Performance

As of the end of FY 2022, Core & Main reported total revenues of $2.1 billion. The net income for the same period stood at $112 million, reflecting an increase in demand for water infrastructure products.

Market Segments

Core & Main operates in two primary market segments:

• Municipal: Supplies products for water distribution, wastewater management, and stormwater control.
• Commercial: Provides plumbing products for industrial and commercial buildings.

Product Offerings

The company offers a diverse range of products, including but not limited to:

• Pipe products
• Valves
• Fittings
• Fire protection equipment
• Water treatment systems

Distribution Network

Core & Main operates over 270 branches across the United States, ensuring broad geographic coverage and customer accessibility. The company's logistics operations enable timely delivery of products to its customers.

Strategic Initiatives

The company focuses on various strategic initiatives to maintain its competitive edge:

• Investment in technology to streamline operations and enhance customer service.
• Expansion of product lines to meet changing market demands.
• Building partnerships with manufacturers to ensure exclusive distribution rights for certain products.

Customer Base

The customer base of Core & Main includes:

• Municipalities
• Contractors
• Engineers
• Developers

Recent Developments

In Q2 2023, Core & Main announced a strategic acquisition of a local distributor, which is expected to enhance its market presence and expand its customer portfolio. The financial details of the acquisition were not disclosed.

Market Position and Competitors

Core & Main is one of the top distributors in its sector, competing with companies such as:

• HD Supply Holdings, Inc.
• Ferguson plc
• Wolseley plc

Commitment to Sustainability

Core & Main prioritizes sustainable practices in its operations, focusing on:

• Reducing carbon emissions in transportation.
• Offering products that contribute to water conservation.
• Implementing recycling programs for products.

How Core & Main, Inc. (CNM) Makes Money

Revenue Streams

Core & Main, Inc. primarily generates revenue through the distribution of waterworks infrastructure products. The company provides a variety of products and services, primarily for utility companies, contractors, and municipalities. In the fiscal year 2022, Core & Main reported a total revenue of $2.29 billion.

Product Categories

The main categories of products offered by Core & Main include:

• Water Distribution Products: Includes pipes, fittings, valves, and related products.
• Sewer and Drainage Products: Encompasses pipes, manholes, and other drainage solutions.
• Stormwater Management Products: Features solutions for managing stormwater flow.
• Environmental Products: Includes various water treatment and environmental solutions.
• Tools and Equipment: Provides tools necessary for installation and maintenance.

Sales Channels

Core & Main utilizes different sales channels to reach its customers effectively:

• Direct Sales: A team of sales representatives works directly with utility companies and contractors.
• Online Sales: A robust online platform enables customers to place orders efficiently.
• Branch Network: The company operates over 300 branches across the United States, enhancing local access.

Financial Performance Metrics

Financial metrics provide insight into the company's performance:

Market Segmentation

Core & Main serves various segments within the infrastructure sector:

• Municipal Governments: Engaged in large-scale water and wastewater projects.
• Contractors: Focused on construction excavation and installation.
• Utilities: Partnerships with public and private utilities for product supply.

Strategic Partnerships and Acquisitions

Core & Main has a history of strategic partnerships and acquisitions to enhance its market position:

• Acquired DPC Industries: A move to strengthen product offerings in 2021.
• Partnerships with Manufacturers: Establishing long-term relationships to ensure product availability.

Recent Investments

Core & Main is committed to future growth through investments:

• Technology Upgrades: Investments in modernizing their IT infrastructure for efficiency.
• Branch Expansion: Opened several new facilities to enhance distribution capabilities.

Challenges and Market Conditions

The company faces challenges including:

• Supply Chain Disruptions: Resulting from global material shortages.
• Regulatory Changes: Changes in environmental regulations impacting product standards.

Future Outlook

Core & Main anticipates continued growth with projections indicating an estimated revenue increase of approximately 5-10% annually through 2025, driven by investment in infrastructure and utility modernization initiatives.