Stock in Action: Core-Mark Holding Company, Inc. (CORE)

Company Profile:

Core-Mark Holding Company, Inc., together with its subsidiaries, markets fresh and broad-line supply solutions to the convenience retail industry. The company distributes various products, including cigarettes, other tobacco products, candies, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise, and health and beauty care products, as well as offers marketing programs and technology solutions. Its customers include traditional convenience stores, grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, and airport concessions, as well as other specialty and small format stores that carry convenience products. The company provides its products through a network of 29 distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

Recent News:

On Jan. 12, 2016, the company has entered into a seventh amendment to its credit facility, which matures in May 2020. The amendment increases the size of its credit facility from $200 million to $300 million.

Net sales increased 8.9% to $3.0 billion for the third quarter of 2015 compared to $2.7 billion for the same period in 2014. Gross profit increased 13.3% to $171.6 million for the third quarter of 2015 compared to $151.4 million for the same period in 2014 driven primarily by increases in sales volume and margins. Net income for the third quarter of 2015 was $15.1 million compared to $13.7 million for the same period in 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CORE’s strengths can be seen in its better growth and strong efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 50.94. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Core-Mark Holding Company, Inc. (CORE) a Strong BUY.