133.5 USD
+0.01 (+0.01%)
133.5 USD
0 (0%)
CDW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While CDW has a great profitability rating, there are some minor concerns on its financial health. CDW scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally CDW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CDW was profitable.
In the past year CDW had a positive cash flow from operations.
In the past 5 years CDW has always been profitable.
In the past 5 years CDW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CDW (6.92%) is better than 84.80% of its industry peers.
Looking at the Return On Equity, with a value of 41.39%, CDW belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.86%, CDW belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROIC | 12.86% |
ROA(3y)8.05%
ROA(5y)8.02%
ROE(3y)56.48%
ROE(5y)74.07%
ROIC(3y)15.27%
ROIC(5y)15.08%
1.3 Margins
CDW has a better Profit Margin (4.76%) than 68.00% of its industry peers.
CDW's Profit Margin has improved in the last couple of years.
CDW has a better Operating Margin (7.39%) than 72.00% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW's Gross Margin of 21.60% is on the low side compared to the rest of the industry. CDW is outperformed by 63.20% of its industry peers.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% |
OM growth 3Y4.89%
OM growth 5Y4.57%
PM growth 3Y2.62%
PM growth 5Y4.66%
GM growth 3Y8.54%
GM growth 5Y5.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CDW is creating some value.
Compared to 1 year ago, CDW has less shares outstanding
CDW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CDW has been reduced compared to a year ago.
2.2 Solvency
CDW has an Altman-Z score of 2.68. This is not the best score and indicates that CDW is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CDW (2.68) is worse than 62.40% of its industry peers.
The Debt to FCF ratio of CDW is 5.58, which is a neutral value as it means it would take CDW, 5.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.58, CDW is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CDW has dependencies on debt financing.
The Debt to Equity ratio of CDW (2.21) is worse than 92.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.47
WACC8.77%
2.3 Liquidity
CDW has a Current Ratio of 1.39. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.39, CDW is doing worse than 78.40% of the companies in the same industry.
CDW has a Quick Ratio of 1.30. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CDW (1.30) is worse than 63.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.09% in the past year.
The Revenue has been growing slightly by 3.09% on average over the past years.
EPS 1Y (TTM)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
3.2 Future
CDW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.47% yearly.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.7%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.43, which indicates a correct valuation of CDW.
Based on the Price/Earnings ratio, CDW is valued cheaper than 88.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, CDW is valued rather cheaply.
CDW is valuated correctly with a Price/Forward Earnings ratio of 12.51.
Based on the Price/Forward Earnings ratio, CDW is valued cheaper than 89.60% of the companies in the same industry.
CDW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 81.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 85.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.23 | ||
| EV/EBITDA | 11.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)1.44
EPS Next 2Y5.83%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 0.47, CDW pays a better dividend. On top of this CDW pays more dividend than 94.40% of the companies listed in the same industry.
CDW's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of CDW grows each year by 14.59%, which is quite nice.
CDW has paid a dividend for at least 10 years, which is a reliable track record.
CDW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
31.39% of the earnings are spent on dividend by CDW. This is a low number and sustainable payout ratio.
The dividend of CDW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.39%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
133.5
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.29%
Inst Owner Change0.22%
Ins Owners0.19%
Ins Owner Change0.1%
Market Cap17.38B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target186.02 (39.34%)
Short Float %3.95%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.86%
Min EPS beat(2)2.37%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)4.97%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)3.1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.67%
PT rev (1m)-0.69%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.79 | ||
| P/FCF | 17.23 | ||
| P/OCF | 15.56 | ||
| P/B | 6.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)9.94
EY7.45%
EPS(NY)10.67
Fwd EY8%
FCF(TTM)7.75
FCFY5.8%
OCF(TTM)8.58
OCFY6.43%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)2.8
PEG (5Y)1.44
Graham Number66.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROCE | 17.01% | ||
| ROIC | 12.86% | ||
| ROICexc | 13.5% | ||
| ROICexgc | 37.62% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% | ||
| FCFM | 4.57% |
ROA(3y)8.05%
ROA(5y)8.02%
ROE(3y)56.48%
ROE(5y)74.07%
ROIC(3y)15.27%
ROIC(5y)15.08%
ROICexc(3y)16.3%
ROICexc(5y)16.93%
ROICexgc(3y)66.87%
ROICexgc(5y)69.73%
ROCE(3y)20.19%
ROCE(5y)19.95%
ROICexgc growth 3Y-5.25%
ROICexgc growth 5Y-6.87%
ROICexc growth 3Y2.46%
ROICexc growth 5Y-5.66%
OM growth 3Y4.89%
OM growth 5Y4.57%
PM growth 3Y2.62%
PM growth 5Y4.66%
GM growth 3Y8.54%
GM growth 5Y5.39%
F-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 37.04% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 58.03% | ||
| Profit Quality | 95.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.68 |
F-Score6
WACC8.77%
ROIC/WACC1.47
Cap/Depr(3y)47.75%
Cap/Depr(5y)46.54%
Cap/Sales(3y)0.61%
Cap/Sales(5y)0.63%
Profit Quality(3y)115.61%
Profit Quality(5y)112.52%
High Growth Momentum
Growth
EPS 1Y (TTM)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.59%
Revenue Next 2Y4.7%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year8.59%
EBIT Next 3Y6.45%
EBIT Next 5YN/A
FCF growth 1Y-12.94%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.37%
OCF growth 3Y17.64%
OCF growth 5Y4.45%
CDW CORP/DE / CDW FAQ
Can you provide the ChartMill fundamental rating for CDW CORP/DE?
ChartMill assigns a fundamental rating of 6 / 10 to CDW.
What is the valuation status for CDW stock?
ChartMill assigns a valuation rating of 7 / 10 to CDW CORP/DE (CDW). This can be considered as Undervalued.
How profitable is CDW CORP/DE (CDW) stock?
CDW CORP/DE (CDW) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CDW CORP/DE (CDW) stock?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 13.43 and the Price/Book (PB) ratio is 6.84.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 7 / 10 and the dividend payout ratio is 31.39%.