What is Concentrix Predictability Rank?
Not Rated
Warren Buffett said many times that the companies he likes are:
1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.
It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.
GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.
Concentrix Predictability Rank Calculation
In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.
Our study may be subject to these biases and assumptions:
Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.
The correlation between business predictability and investment returns of a company is showed below.
Correlation Between Business Predictability and Investment Returns
| Predictables | Non-Predictable | All stocks |
|---|
| Total Number of stocks | 570 | 1833 | 2403 |
| Total Lost Money | 61 | 830 | 891 |
| Total Lost More Than 50% | 18 | 412 | 430 |
| Total Lost More Than 90% | 4 | 86 | 90 |
| Average Gain | 260.6% | 100.0% | 138.1% |
| Median Gain | 150.0% | 13.0% | 39.0% |
| Maximum Gain | 2852.0% | 11483.0% | 11483.0% |
| Maximum Loss | -100.0% | -100.0% | -100.0% |
| Annualized Average Gain | 12.7% | 6.7% | 8.4% |
| Annualized Median Gain | 8.9% | 1.1% | 3.1% |
For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.
| Predictability Rank | 5-Star | 4.5-Star | 4-Star | 3.5-Star | 3-Star | 2.5-Star | 2-Star | 1-Star (non-predictable) | Average among all |
|---|
| % Out of All 2403 Stocks |
3.3% |
2.9% |
3.7% |
3.3% |
3.3% |
3.7% |
3.3% |
76.3% |
100% |
| % that are in Loss (10y) |
3% |
10% |
8% |
9% |
11% |
18% |
16% |
45% |
37% |
| Average Gain (10y) |
364.6% |
330.9% |
278.0% |
235.1% |
243.5% |
227.8% |
154.8% |
100.0% |
138.1% |
| Median Gain (10y) |
238.5% |
193.5% |
171.0% |
159.0% |
132.5% |
113.5% |
87.0% |
13.0% |
39.0% |
| Maximum Gainer |
2228.0% |
2547.0% |
2452.0% |
2852.0% |
2432.0% |
1892.0% |
1807.0% |
11483.0% |
11483.0% |
| Maximum Loser |
-82.0% |
-53.0% |
-67.0% |
-100.0% |
-83.0% |
-100.0% |
-78.0% |
-100.0% |
-100.0% |
| Annualized Average Gain |
15.4% |
14.6% |
13.2% |
12.0% |
12.2% |
11.7% |
9.1% |
6.7% |
8.4% |
| Annualized Median Gain |
12.1% |
10.6% |
9.8% |
9.3% |
8.2% |
7.3% |
6.0% |
1.1% |
3.1% |
For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank
Also read:
Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety
Concentrix (Concentrix) Business Description
Traded in Other Exchanges
Address
39899 Balentine Drive, Newark, CA, USA, 94560
Concentrix Corp is a technology-enabled company specialized in customer engagement and customer management. The company provides end-to-end solutions that facilitate communication between clients and their customers, provide analytics and process optimization, and support client-centric operations and back-office processing across the enterprise. The solutions are provided in four complementary areas: Customer Lifecycle Management; CX/UX Strategy and Design; Digital Transformation; and VOC and Analytics. Also, the company provides insurance solutions, marketing solutions, and automation solutions.
Executives
| Jane Fogarty |
officer: EVP, Legal |
39899 BALENTINE DRIVE, SUITE 235, NEWARK CA 94560 |
| Dennis Polk |
director |
44201 NOBEL DRIVE, FREMONT CA 94538 |
| Christopher A Caldwell |
director, officer: President and CEO |
39899 BALENTINE DRIVE, SUITE 235, NEWARK CA 94560 |
| Olivier Duha |
director |
39899 BALENTINE DRIVE, STE 235, NEWARK CA 94560 |
| Vi Sa Finpar |
10 percent owner |
AVENUE MARNIX 24, BRUSSELS C9 1000 |
| Sapiens S.a R.l. |
10 percent owner |
19-21, ROUTE D'ARLON, STRASSEN N4 L-8009 |
| Gbl Verwaltung S.a. |
10 percent owner |
19-21, ROUTE D'ARLON, STRASSEN N4 L-8009 |
| V Sa Finpar |
10 percent owner |
AVENUE MARNIX 24, BRUSSELS C9 1000 |
| Nicolas Gheysens |
director |
C/O GBL VERWALTUNG S.A., 19-21, ROUTE D'ARLON, STRASSUN N4 L-8009 |
| Bruxelles Lambert Groupe |
10 percent owner |
24 AVENUE MARNIX, BRUSSELS C9 1000 |
| Kathryn Hayley |
director |
C/O AON CORPORATION, LAW DEPT, 200 EAST RANDOLPH STREET, 8TH FLOOR, CHICAGO IL 60601 |
| Twomey Cormac J |
officer: EVP, Global Ops & Delivery |
201 EAST FOURTH STREET, CONVERGYS CORPORATION, CINCINNATI OH 45202 |
| Peer Developments Ltd |
10 percent owner |
4TH FLOOR, NO. 75, SEC. 3,, MING-SHENG E. ROAD,, TAIPEI F5 00000 |
| Matthew Miau |
10 percent owner |
44201 NOBEL DRIVE, FREMONT CA 94538 |
| Silver Star Developments Ltd |
10 percent owner |
NO 200 WEN HWA 2ND RD, KUEI SHAN HSIANG, TAOYUAN F5 00000 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CNXC has been successfully added to your