NIA Impact Advisors Opens New $4 Million Position in Core & Main on the Dip

On Nov. 13, 2025, NIA Impact Advisors, LLC disclosed a new position in Core & Main (NYSE:CNM), acquiring 66,437 shares valued at approximately $3.58 million.

What happened

NIA Impact Advisors disclosed a new investment in Core & Main in its quarterly portfolio update filed with the U.S. Securities and Exchange Commission (SEC filing) dated Nov. 13, 2025.

The firm reported ownership of 66,437 shares, equivalent to $3.58 million, marking the initiation of a stake in the water infrastructure distributor during the third quarter of 2025.

What else to know

This new position in Core & Main accounts for 1.2% of NIA's $307.72 million in reportable U.S. equity holdings as of Sept. 30, 2025.

Top fund holdings after the filing:

• Vanguard Total Stock Market ETF (NYSEMKT:VTI): $14.30 million (4.6% of AUM)
• Taiwan Semiconductor Manufacturing (NYSE:TSM): $11.35 million (3.7% of AUM)
• Apple (NASDAQ:AAPL): $11.29 million (3.7% of AUM)
• First Solar (NASDAQ:FSLR): $11.08 million (3.6% of AUM)
• International Business Machines (NYSE:IBM): $8.66 million (2.8% of AUM)

As of Dec. 10, 2025, shares of Core & Main were priced at $55.19, up approximately 3% over the past year, underperforming the S&P 500 by 10 percentage points.

Core & Main trades at a forward price-to-earnings ratio of 24 and an enterprise value to EBITDA multiple of 13.

Company Overview

Company Snapshot

Core & Main:

• Distributes water, wastewater, storm drainage, fire protection, and meter products, including pipes, valves, hydrants, fittings, and related services.
• Generates revenue through the sale of infrastructure products and value-added services for the construction, maintenance, and repair of water and fire protection systems.
• Serves municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential end markets across the United States.

Core & Main is a leading distributor of water, wastewater, and fire protection infrastructure products in the United States, operating at scale with over $7.7 billion in trailing twelve months revenue.

The company leverages a broad product portfolio and technical expertise to support critical infrastructure projects for a diverse customer base.

Its strategic focus on essential utility markets and specialized services underpins a resilient business model and positions it as a key partner in the maintenance and development of water and fire protection systems nationwide.

Foolish take

NIA Impact Advisors appears to be buying the dip on Core & Main, the United States' second-largest distributor of waterworks products.

Since Core & Main went public in 2021, it has nearly doubled the total returns of the S&P 500, powered by its success as a serial acquirer.

While the top two players in the company's niche control one-third of product distribution in the U.S. waterworks niche, the rest of the industry is highly fragmented, making it a perfect opportunity for acquirers like Core & Main.

That said, the company's sales growth trickled down to just 1% in the last quarter, causing the stock to sell off heavily, which is where NIA scooped up some shares.

From a Foolish perspective, I think this purchase is a shrewd one. Core & Main's return on invested capital has consistently been above 10% in recent years, indicating that it is a profitable acquirer and integrator of businesses.

Furthermore, clean water, water conservation, climate resilience, and the preservation of ancient water infrastructure provide numerous tailwinds to drive Core & Main's sales to persistently higher highs over the long term.

Trading at 20 times free cash flow, the company is cheaper than the broader market, but should prove to be a steady-Eddie operator despite this discount price tag. I really like NIA's purchase of Core & Main and will be keeping an eye on the company myself.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
Position: The amount of a particular security or asset held in a portfolio.
Net Position Change: The difference in the number or value of shares held before and after a transaction.
Reportable Holdings: Investments that must be disclosed to regulators, typically due to size or regulatory requirements.
Forward Price-to-Earnings Ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
Enterprise Value to EBITDA: A ratio comparing a company’s total value to its earnings before interest, taxes, depreciation, and amortization.
Dividend Yield: Annual dividend income expressed as a percentage of the current share price.
Trailing Twelve Months (TTM): The 12 months ending with the most recent quarterly report.
Stake: The ownership interest or shareholding in a company.
Municipalities: Local government entities, such as cities or towns, often customers for infrastructure products.
Value-Added Services: Additional services provided alongside products to enhance their usefulness or performance.
End Markets: The final industries or sectors where a company’s products or services are sold or used.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, First Solar, International Business Machines, Taiwan Semiconductor Manufacturing, and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.