CDW CORP/DE (CDW) Stock Fundamental Analysis
USA - NASDAQ:CDW - US12514G1085 - Common Stock
142.45 USD
+0.89 (+0.63%)
142.45 USD
0 (0%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 123 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CDW had positive earnings in the past year.
In the past year CDW had a positive cash flow from operations.
Each year in the past 5 years CDW has 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 (7.05%) is better than 85.48% of its industry peers.
CDW has a better Return On Equity (43.64%) than 98.39% of its industry peers.
CDW's Return On Invested Capital of 13.36% is amongst the best of the industry. CDW outperforms 89.52% of its industry peers.
CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 9.51%.
| 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
CDW has a better Profit Margin (4.92%) than 66.94% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW has a better Operating Margin (7.64%) than 71.77% of its industry peers.
CDW's Operating Margin has improved in the last couple of years.
CDW has a worse Gross Margin (21.57%) than 62.90% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CDW is creating some value.
CDW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CDW has been reduced compared to 5 years ago.
The debt/assets ratio for CDW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.70 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CDW's Altman-Z score of 2.70 is in line compared to the rest of the industry. CDW outperforms 41.13% 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.
CDW's Debt to FCF ratio of 5.53 is fine compared to the rest of the industry. CDW outperforms 60.48% of its industry peers.
CDW has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
CDW has a worse Debt to Equity ratio (2.28) than 92.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.56
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CDW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, CDW is doing worse than 79.03% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that CDW should not have too much problems paying its short term obligations.
The Quick ratio of CDW (1.22) is worse than 66.94% 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 3.33%.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
Looking at the last year, CDW shows a decrease in Revenue. The Revenue has decreased by -1.77% in the last 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)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
3.2 Future
The Earnings Per Share is expected to grow by 6.32% 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 4.59% on average per year.
EPS Next Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
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
Based on the Price/Earnings ratio of 14.33, the valuation of CDW can be described as correct.
Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
CDW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.49, CDW is valued correctly.
Based on the Price/Forward Earnings ratio, CDW is valued cheaper than 89.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (32.68), we can say CDW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than 79.84% of the companies in the same industry.
CDW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CDW is cheaper than 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)1.54
EPS Next 2Y5.27%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 2.12, CDW pays a better dividend. On top of this CDW pays more dividend than 94.35% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 3Y6.32%
142.45
+0.89 (+0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.43%
Ins Owners0.19%
Ins Owner Change0.55%
Market Cap18.67B
Revenue(TTM)21.00B
Net Income(TTM)1.08B
Analysts76.47
Price Target210.61 (47.85%)
Short Float %3.2%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)-0.26%
PT rev (3m)-3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 13.49 | ||
| P/S | 0.85 | ||
| P/FCF | 18.32 | ||
| P/OCF | 16.51 | ||
| P/B | 7.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)9.94
EY6.98%
EPS(NY)10.56
Fwd EY7.41%
FCF(TTM)7.77
FCFY5.46%
OCF(TTM)8.63
OCFY6.06%
SpS166.93
BVpS18.82
TBVpS-26.37
PEG (NY)3.2
PEG (5Y)1.54
Graham Number64.89
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%
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-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 | 2.7 |
F-Score5
WACC8.58%
ROIC/WACC1.56
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 Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.77%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.83%
EBIT Next 3Y6.56%
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%
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 of CDW CORP/DE (CDW) stock?
ChartMill assigns a valuation rating of 6 / 10 to CDW CORP/DE (CDW). This can be considered as Fairly Valued.
How profitable is CDW CORP/DE (CDW) stock?
CDW CORP/DE (CDW) has a profitability rating of 8 / 10.
What is the valuation of CDW CORP/DE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 14.33 and the Price/Book (PB) ratio is 7.57.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 6 / 10 and the dividend payout ratio is 30.73%.