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CDW CORP/DE (NASDAQ:CDW) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Apr 1, 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.

Exploring Why NASDAQ:CDW Holds Appeal 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.
  • CDW CORP/DE demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 86.33% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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 robust Profit Quality (5-year) ratio of 113.0%, CDW CORP/DE highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • CDW CORP/DE has consistently achieved strong EBIT growth over the past 5 years, with a 11.24% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • 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.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

CDW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Electronic Equipment, Instruments & Components industry. CDW scores excellent on profitability, but there are some minor concerns on its financial health. CDW is not valued too expensively and it also shows a decent growth rate.

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 (5/24/2024, 7:19:05 PM)

After market: 231.06 0 (0%)

231.06

-0.51 (-0.22%)

CDW News

News Image26 days ago - Market News VideoNoteworthy Wednesday Option Activity: BA, CDW, MTCH
News Image26 days 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 Image26 days 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
News Imagea month ago - Market News VideoPublic Service Enterprise Group Takes Over #255 Spot From CDW
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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