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CDW CORP/DE (NASDAQ:CDW) Exhibits Quality Stock Traits. Here's Why.

By Mill Chart

Last update: Mar 8, 2024

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.

Key Considerations for Quality Investors.

  • Over the past 5 years, CDW CORP/DE has experienced impressive revenue growth, with 5.65% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of CDW CORP/DE stands at 86.33%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • CDW CORP/DE demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.89, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 113.0%, CDW CORP/DE showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CDW CORP/DE has experienced impressive EBIT growth over the past 5 years, with 11.24% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • CDW CORP/DE has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals of NASDAQ:CDW?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

CDW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 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 decent growth rate and is not valued too expensively.

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.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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