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Why CDW CORP/DE (NASDAQ:CDW) qualifies as a quality stock.

By Mill Chart

Last update: Dec 22, 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

  • Over the past 5 years, CDW CORP/DE has experienced impressive revenue growth, with 9.87% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • CDW CORP/DE demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 69.13% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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 exhibits impressive Profit Quality (5-year) with a 112.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • CDW CORP/DE has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.91%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • The EBIT 5-year growth of CDW CORP/DE has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NASDAQ:CDW

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, CDW scores 5 out of 10 in our fundamental rating. CDW was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. While CDW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CDW has a valuation in line with the averages, but on the other hand it scores bad on growth.

Check the latest full fundamental report of CDW for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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CDW CORP/DE

NASDAQ:CDW (5/29/2024, 7:00:02 PM)

After market: 220.71 0 (0%)

220.71

-4.49 (-1.99%)

CDW News

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News Imagea month ago - InvestorPlaceCDW Stock Earnings: CDW Misses EPS, Misses Revenue for Q1 2024

CDW stock results show that CDW missed analyst estimates for earnings per share and missed on revenue for the first quarter of 2024.

News Imagea month ago - Market News VideoNasdaq 100 Movers: SBUX, VRSK
News Imagea month ago - CDW CorporationCDW Declares Quarterly Cash Dividend of $0.62 Per Share
News Imagea month ago - CDW CorporationCDW Reports First Quarter 2024 Earnings
News Imagea month ago - Market News VideoFirst Week of December 20th Options Trading For CDW
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News Imagea month ago - CDW CorporationCDW to Announce First Quarter 2024 Results on May 1
News Image2 months ago - Market News VideoNoteworthy Friday Option Activity: CDW, GS, UBER
News Image2 months ago - Market News VideoYieldBoost CDW To 11.5% Using Options
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