CDW CORP/DE (CDW)
US12514G1085 - Common Stock
Taking everything into account, CDW scores 5 out of 10 in our fundamental rating. CDW was compared to 130 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CDW had positive earnings in the past year.
CDW had a positive operating cash flow in the past year.
In the past 5 years CDW has always been profitable.
CDW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CDW (8.26%) is better than 86.61% of its industry peers.
Looking at the Return On Equity, with a value of 50.98%, CDW belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
The Return On Invested Capital of CDW (15.75%) is better than 92.91% of its industry peers.
CDW had an Average Return On Invested Capital over the past 3 years of 15.14%. This is significantly above the industry average of 9.34%.
The last Return On Invested Capital (15.75%) for CDW is above the 3 year average (15.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 50.98% | ||
| ROIC | 15.75% |
ROA(3y)8.1%
ROA(5y)8.39%
ROE(3y)87.9%
ROE(5y)80.26%
ROIC(3y)15.14%
ROIC(5y)16.16%
1.3 Margins
CDW's Profit Margin of 5.16% is fine compared to the rest of the industry. CDW outperforms 70.08% of its industry peers.
CDW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.82%, CDW is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW has a Gross Margin of 21.88%. This is in the lower half of the industry: CDW underperforms 62.20% of its industry peers.
CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.82% | ||
| PM (TTM) | 5.16% | ||
| GM | 21.88% |
OM growth 3Y7.19%
OM growth 5Y5.29%
PM growth 3Y6.54%
PM growth 5Y5.47%
GM growth 3Y7.78%
GM growth 5Y5.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CDW is creating value.
Compared to 1 year ago, CDW has less shares outstanding
Compared to 5 years ago, CDW has less shares outstanding
The debt/assets ratio for CDW has been reduced compared to a year ago.
2.2 Solvency
CDW has an Altman-Z score of 3.65. This indicates that CDW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CDW (3.65) is better than 63.78% of its industry peers.
The Debt to FCF ratio of CDW is 3.69, which is a good value as it means it would take CDW, 3.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.69, CDW is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
A Debt/Equity ratio of 2.35 is on the high side and indicates that CDW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.35, CDW is doing worse than 95.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.94
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.26 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a worse Current ratio (1.26) than 85.04% of its industry peers.
A Quick Ratio of 1.13 indicates that CDW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, CDW is not doing good in the industry: 71.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.56% over the past year.
CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.83% yearly.
Looking at the last year, CDW shows a decrease in Revenue. The Revenue has decreased by -7.67% in the last year.
Measured over the past years, CDW shows a small growth in Revenue. The Revenue has been growing by 5.65% on average per year.
EPS 1Y (TTM)1.56%
EPS 3Y14.45%
EPS 5Y13.83%
EPS Q2Q%-5.42%
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y5%
Revenue growth 5Y5.65%
Sales Q2Q%-4.51%
3.2 Future
Based on estimates for the next years, CDW will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y3.45%
EPS Next 2Y6.81%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year0.23%
Revenue Next 2Y3.03%
Revenue Next 3Y4.4%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CDW is valuated rather expensively with a Price/Earnings ratio of 23.51.
Based on the Price/Earnings ratio, CDW is valued a bit cheaper than the industry average as 67.72% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.41. CDW is around the same levels.
Based on the Price/Forward Earnings ratio of 20.38, the valuation of CDW can be described as rather expensive.
CDW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CDW is cheaper than 62.99% of the companies in the same industry.
CDW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CDW.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 75.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.22 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CDW does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)6.81
PEG (5Y)1.7
EPS Next 2Y6.81%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.62, CDW pays a better dividend. On top of this CDW pays more dividend than 89.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CDW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of CDW grows each year by 20.78%, 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)20.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
CDW pays out 29.80% of its income as dividend. This is a sustainable payout ratio.
The dividend of CDW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.8%
EPS Next 2Y6.81%
EPS Next 3Y8.12%
CDW CORP/DE
NASDAQ:CDW (7/26/2024, 7:21:33 PM)
After market: 229.74 0 (0%)229.74
+1.12 (+0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.81
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 50.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.82% | ||
| PM (TTM) | 5.16% | ||
| GM | 21.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.56%
EPS 3Y14.45%
EPS 5Y
EPS Q2Q%
EPS Next Y3.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.67%
Revenue growth 3Y5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y