CDW CORP/DE (CDW) Stock Fundamental Analysis
NASDAQ:CDW - US12514G1085 - Common Stock
164.76 USD
-1.11 (-0.67%)
164.76 USD
0 (0%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 124 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 decent growth rate and is not valued too expensively.
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.
CDW had positive earnings in each of the past 5 years.
Each year in the past 5 years CDW had a positive operating cash flow.
1.2 Ratios
CDW has a Return On Assets of 7.05%. This is amongst the best in the industry. CDW outperforms 86.29% of its industry peers.
Looking at the Return On Equity, with a value of 43.64%, CDW belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.36%, CDW belongs to the top of the industry, outperforming 89.52% 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 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROIC | 13.36% |
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
With a decent Profit Margin value of 4.92%, CDW is doing good in the industry, outperforming 69.35% of the companies in the same industry.
CDW's Profit Margin has improved in the last couple of years.
CDW has a better Operating Margin (7.64%) than 73.39% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW has a Gross Margin of 21.57%. This is in the lower half of the industry: CDW underperforms 63.71% of its industry peers.
CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CDW is still creating some 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 2.85. 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.
CDW has a Altman-Z score of 2.85. This is comparable to the rest of the industry: CDW outperforms 42.74% of its industry peers.
The Debt to FCF ratio of CDW is 5.53, which is a neutral value as it means it would take CDW, 5.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.53, CDW is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
A Debt/Equity ratio of 2.28 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 2.28, CDW is doing worse than 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.49
WACC8.95%
2.3 Liquidity
CDW has a Current Ratio of 1.35. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CDW (1.35) is worse than 79.84% of its industry peers.
A Quick Ratio of 1.22 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a Quick ratio of 1.22. This is in the lower half of the industry: CDW underperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.54%.
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 4.47% in the past year.
CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.09% yearly.
EPS 1Y (TTM)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
3.2 Future
The Earnings Per Share is expected to grow by 6.24% on average over the next years.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.71, the valuation of CDW can be described as correct.
88.71% of the companies in the same industry are more expensive than CDW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. CDW is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.60, the valuation of CDW can be described as correct.
86.29% of the companies in the same industry are more expensive than CDW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, CDW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
CDW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CDW is cheaper than 76.61% of the companies in the same industry.
CDW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CDW is cheaper than 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.19 | ||
| EV/EBITDA | 13.73 |
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.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.75
PEG (5Y)1.8
EPS Next 2Y5.27%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, CDW has a reasonable but not impressive dividend return.
CDW's Dividend Yield is rather good when compared to the industry average which is at 1.59. CDW pays more dividend than 91.94% of the companies in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of CDW is nicely growing with an annual growth rate of 14.59%!
CDW has paid a dividend for at least 10 years, which is a reliable track record.
CDW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CDW pays out 30.73% of its income as dividend. This is a sustainable payout ratio.
CDW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.73%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
164.76
-1.11 (-0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change-1.23%
Ins Owners0.19%
Ins Owner Change4.95%
Market Cap21.59B
Analysts76.47
Price Target211.15 (28.16%)
Short Float %2.67%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP30.73%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.91%
Min EPS beat(2)3.35%
Max EPS beat(2)8.48%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-8.79%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.23%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)1.78%
Revenue beat(2)2
Avg Revenue beat(2)5.85%
Min Revenue beat(2)4.34%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)2.72%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.91%
PT rev (3m)-2.66%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)1.13%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)2.72%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.6 | ||
| P/S | 0.99 | ||
| P/FCF | 21.19 | ||
| P/OCF | 19.1 | ||
| P/B | 8.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)9.86
EY5.98%
EPS(NY)10.56
Fwd EY6.41%
FCF(TTM)7.77
FCFY4.72%
OCF(TTM)8.63
OCFY5.24%
SpS166.93
BVpS18.82
TBVpS-26.37
PEG (NY)3.75
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROCE | 17.67% | ||
| ROIC | 13.36% | ||
| ROICexc | 14.08% | ||
| ROICexgc | 41.37% | ||
| OM | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% | ||
| FCFM | 4.66% |
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%
ROICexcg growth 3Y-5.25%
ROICexcg 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-Score5
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 38.91% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 57.72% | ||
| Profit Quality | 94.63% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.85 |
F-Score5
WACC8.95%
ROIC/WACC1.49
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)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.98%
EBIT Next 3Y6.44%
EBIT Next 5YN/A
FCF growth 1Y-1.36%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-3.24%
OCF growth 3Y17.64%
OCF growth 5Y4.45%