On December 31, 2024, Select Equity Group, L.P. (Trades, Portfolio) executed a notable reduction in its holdings of Core & Main Inc (CNM, Financial). The firm decreased its position by 3,192,243 shares, which represents a 19.49% decrease in its stake. This transaction reflects a strategic decision by the firm, impacting its portfolio by -0.58%. Post-transaction, Select Equity Group holds 13,182,779 shares, accounting for 2.42% of its portfolio and 6.90% of its holdings in Core & Main Inc.
About Select Equity Group, L.P. (Trades, Portfolio)
Select Equity Group, L.P. (Trades, Portfolio) is a hedge fund sponsor based in New York City, founded in 1990 by George S. Loening. The firm is known for its research-intensive, value-biased approach to investing in high-quality businesses. Initially focusing on U.S. small to mid-cap companies, the firm has expanded its investments to include larger cap companies and international opportunities. Select Equity Group invests heavily in the consumer discretionary and industrials sectors, with a diverse client base that includes high net worth individuals, pension plans, and corporations. The firm manages $27.85 billion in equity across over 850 accounts.
Core & Main Inc Overview
Core & Main Inc is a specialty distributor in the United States, focusing on water, wastewater, storm drainage, and fire protection products. The company serves municipal, non-residential, and residential markets nationwide, contributing to reliable infrastructure development. With a market capitalization of $10.33 billion, Core & Main Inc generates revenue primarily from pipes, valves, and fittings. The company has shown significant growth since its IPO on July 23, 2021, with a 150.28% increase in stock price.
Transaction Details and Financial Metrics
The shares were traded at a price of $50.91. Since the transaction, Core & Main Inc's stock has gained 6.68%, currently trading at $54.31. The company has a PE ratio of 25.50 and is considered significantly overvalued with a GF Value of $39.68. Core & Main Inc has a GF Score of 83/100, indicating good outperformance potential. The company has demonstrated strong growth metrics, with a 3-year revenue growth of 24.80% and an EBITDA growth of 40.90%.
Performance and Growth Indicators
Core & Main Inc's financial strength is reflected in its Financial Strength rank of 5/10 and Profitability Rank of 7/10. The company has a interest coverage of 5.55, indicating its ability to meet interest obligations. The Altman Z score of 3.26 suggests a low risk of bankruptcy. Core & Main Inc's Piotroski F-Score is 6, reflecting moderate financial health.
Other Notable Investors
Besides Select Equity Group, other notable investors in Core & Main Inc include Keeley-Teton Advisors, LLC (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Leucadia National is identified as the largest guru holding the most shares of Core & Main Inc. These investments highlight the interest of prominent investors in the company's growth potential.
Transaction Analysis
The reduction in Select Equity Group's stake in Core & Main Inc suggests a strategic reallocation of its portfolio. Despite the decrease, the firm still holds a significant position in the company, indicating continued confidence in its long-term prospects. The transaction's impact on the portfolio was minimal, at -0.58%, reflecting a calculated decision by the firm to optimize its investment strategy.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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