CNXC - Concentrix: A Key Player In CX With The ServiceSource And PK Acquisitions

• CX, or short for "Customer Experience", is a key requirement for corporations as in addition to high inflation they face tough competition.
• In this respect, Concentrix's recent bid for ServiceSource and acquisition of PK last year positions it as a key player in CX solutions.
• This thesis goes beyond the growth rationale and focuses on profitability, in line with the value strategy which has now become more prevalent among investors.
• The acquirer's debt level has also surged but I like the GAAP operating profit guidance for 2022 which considers potential cost synergies.
• Despite good valuations and profitability grades, Concentrix is not a buy till it is able to again generate free cash flow, a key metric in this high inflation environment.

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