- 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.
For further details see:
Concentrix: A Key Player In CX With The ServiceSource And PK Acquisitions