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Analyzing the Quality Characteristics of CDW CORP/DE (NASDAQ:CDW).

By Mill Chart

Last update: Nov 20, 2023

In this article we will dive into CDW CORP/DE (NASDAQ:CDW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CDW CORP/DE showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of CDW CORP/DE

  • The 5-year revenue growth of CDW CORP/DE has been remarkable, with 9.87% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 69.1%, CDW CORP/DE showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of CDW CORP/DE stands at 4.92, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • CDW CORP/DE demonstrates consistent Profit Quality over the past 5 years, with a strong 112.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • CDW CORP/DE has experienced impressive EBIT growth over the past 5 years, with 14.91% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • CDW CORP/DE demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NASDAQ:CDW?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to CDW. CDW was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. CDW has an excellent profitability rating, but there are some minor concerns on its financial health. CDW has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of CDW

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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