CDW CORP/DE (CDW) Fundamental Analysis & Valuation

NASDAQ:CDW • US12514G1085

Current stock price

136.03 USD
-0.88 (-0.64%)
At close:
136.03 USD
0 (0%)
After Hours:

This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CDW Profitability Analysis

1.1 Basic Checks

  • CDW had positive earnings in the past year.
  • 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.
CDW Yearly Net Income VS EBIT VS OCF VS FCFCDW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • CDW has a better Return On Assets (6.65%) than 83.06% of its industry peers.
  • With an excellent Return On Equity value of 40.93%, CDW belongs to the best of the industry, outperforming 99.19% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.09%, CDW belongs to the top of the industry, outperforming 92.74% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CDW is significantly above the industry average of 8.09%.
Industry RankSector Rank
ROA 6.65%
ROE 40.93%
ROIC 14.09%
ROA(3y)7.44%
ROA(5y)7.66%
ROE(3y)46.93%
ROE(5y)70.09%
ROIC(3y)14.53%
ROIC(5y)14.52%
CDW Yearly ROA, ROE, ROICCDW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100

1.3 Margins

  • CDW has a better Profit Margin (4.76%) than 69.35% of its industry peers.
  • CDW's Profit Margin has improved in the last couple of years.
  • CDW has a better Operating Margin (7.38%) than 70.97% of its industry peers.
  • CDW's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 21.73%, CDW is doing worse than 65.32% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CDW has grown nicely.
Industry RankSector Rank
OM 7.38%
PM (TTM) 4.76%
GM 21.73%
OM growth 3Y0.35%
OM growth 5Y2.95%
PM growth 3Y0.44%
PM growth 5Y2.17%
GM growth 3Y3.27%
GM growth 5Y4.57%
CDW Yearly Profit, Operating, Gross MarginsCDW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

2. CDW Health Analysis

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
  • The number of shares outstanding for CDW has been reduced compared to 5 years ago.
  • CDW has a better debt/assets ratio than last year.
CDW Yearly Shares OutstandingCDW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CDW Yearly Total Debt VS Total AssetsCDW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • CDW has an Altman-Z score of 2.50. 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 2.50. This is comparable to the rest of the industry: CDW outperforms 40.32% of its industry peers.
  • CDW has a debt to FCF ratio of 5.17. This is a neutral value as CDW would need 5.17 years to pay back of all of its debts.
  • The Debt to FCF ratio of CDW (5.17) is better than 62.90% of its industry peers.
  • A Debt/Equity ratio of 1.77 is on the high side and indicates that CDW has dependencies on debt financing.
  • The Debt to Equity ratio of CDW (1.77) is worse than 93.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 5.17
Altman-Z 2.5
ROIC/WACC1.5
WACC9.39%
CDW Yearly LT Debt VS Equity VS FCFCDW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.18 indicates that CDW should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.18, CDW is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
  • CDW has a Quick Ratio of 1.10. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
  • CDW's Quick ratio of 1.10 is on the low side compared to the rest of the industry. CDW is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.1
CDW Yearly Current Assets VS Current LiabilitesCDW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CDW Growth Analysis

3.1 Past

  • CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.25%.
  • Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
  • The Revenue has been growing slightly by 6.79% in the past year.
  • CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
EPS 1Y (TTM)5.25%
EPS 3Y0.81%
EPS 5Y8.76%
EPS Q2Q%3.63%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-1.9%
Revenue growth 5Y3.96%
Sales Q2Q%6.27%

3.2 Future

  • Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
  • CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y5.86%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y4.03%
Revenue Next 3Y3.78%
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 stable.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CDW Yearly Revenue VS EstimatesCDW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B 25B
CDW Yearly EPS VS EstimatesCDW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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6

4. CDW Valuation Analysis

4.1 Price/Earnings Ratio

  • CDW is valuated correctly with a Price/Earnings ratio of 13.56.
  • 90.32% of the companies in the same industry are more expensive than CDW, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.51, CDW is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 12.81, CDW is valued correctly.
  • CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 85.48% of the companies in the same industry.
  • CDW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.41, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.56
Fwd PE 12.81
CDW Price Earnings VS Forward Price EarningsCDW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 82.26% 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 85.48% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16
EV/EBITDA 11.49
CDW Per share dataCDW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)2.31
PEG (5Y)1.55
EPS Next 2Y6.71%
EPS Next 3Y7.36%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CDW Dividend Analysis

5.1 Amount

  • CDW has a Yearly Dividend Yield of 1.84%.
  • Compared to an average industry Dividend Yield of 0.42, CDW pays a better dividend. On top of this CDW pays more dividend than 95.97% of the companies listed in the same industry.
  • CDW's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.84%

5.2 History

  • The dividend of CDW is nicely growing with an annual growth rate of 10.23%!
  • 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)10.23%
Div Incr Years12
Div Non Decr Years12
CDW Yearly Dividends per shareCDW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 30.81% of the earnings are spent on dividend by CDW. This is a low number and sustainable payout ratio.
  • CDW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.81%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
CDW Yearly Income VS Free CF VS DividendCDW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
CDW Dividend Payout.CDW Dividend Payout, showing the Payout Ratio.CDW Dividend Payout.PayoutRetained Earnings

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CDW Fundamentals: All Metrics, Ratios and Statistics

CDW CORP/DE

NASDAQ:CDW (5/1/2026, 8:14:44 PM)

After market: 136.03 0 (0%)

136.03

-0.88 (-0.64%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Industry Strength80.75
Industry Growth90.06
Earnings (Last)02-04
Earnings (Next)05-06
Inst Owners97.17%
Inst Owner Change0.42%
Ins Owners0.24%
Ins Owner Change5.54%
Market Cap17.41B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target169.74 (24.78%)
Short Float %4.64%
Short Ratio3.65
Dividend
Industry RankSector Rank
Dividend Yield 1.84%
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-25
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.26%
Min EPS beat(2)2.37%
Max EPS beat(2)4.15%
EPS beat(4)4
Avg EPS beat(4)4.59%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)5
Avg EPS beat(8)0.2%
EPS beat(12)8
Avg EPS beat(12)1.14%
EPS beat(16)11
Avg EPS beat(16)1.58%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)3.16%
Revenue beat(4)3
Avg Revenue beat(4)3.42%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)4
Avg Revenue beat(8)1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)-0.72%
PT rev (3m)-8.75%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)3.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.65%
Valuation
Industry RankSector Rank
PE 13.56
Fwd PE 12.81
P/S 0.78
P/FCF 16
P/OCF 14.44
P/B 6.68
P/tB N/A
EV/EBITDA 11.49
EPS(TTM)10.03
EY7.37%
EPS(NY)10.62
Fwd EY7.81%
FCF(TTM)8.5
FCFY6.25%
OCF(TTM)9.42
OCFY6.92%
SpS175.23
BVpS20.36
TBVpS-25.34
PEG (NY)2.31
PEG (5Y)1.55
Graham Number67.7927 (-50.16%)
Profitability
Industry RankSector Rank
ROA 6.65%
ROE 40.93%
ROCE 18.81%
ROIC 14.09%
ROICexc 15.15%
ROICexgc 53.12%
OM 7.38%
PM (TTM) 4.76%
GM 21.73%
FCFM 4.85%
ROA(3y)7.44%
ROA(5y)7.66%
ROE(3y)46.93%
ROE(5y)70.09%
ROIC(3y)14.53%
ROIC(5y)14.52%
ROICexc(3y)15.7%
ROICexc(5y)15.43%
ROICexgc(3y)62.67%
ROICexgc(5y)61.96%
ROCE(3y)19.39%
ROCE(5y)19.38%
ROICexgc growth 3Y-5.94%
ROICexgc growth 5Y-9.74%
ROICexc growth 3Y-2.82%
ROICexc growth 5Y-7.08%
OM growth 3Y0.35%
OM growth 5Y2.95%
PM growth 3Y0.44%
PM growth 5Y2.17%
GM growth 3Y3.27%
GM growth 5Y4.57%
F-Score5
Asset Turnover1.4
Health
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 5.17
Debt/EBITDA 2.37
Cap/Depr 39.61%
Cap/Sales 0.52%
Interest Coverage 7.07
Cash Conversion 61.77%
Profit Quality 102.02%
Current Ratio 1.18
Quick Ratio 1.1
Altman-Z 2.5
F-Score5
WACC9.39%
ROIC/WACC1.5
Cap/Depr(3y)46.3%
Cap/Depr(5y)47.03%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.56%
Profit Quality(3y)113.5%
Profit Quality(5y)103.61%
High Growth Momentum
Growth
EPS 1Y (TTM)5.25%
EPS 3Y0.81%
EPS 5Y8.76%
EPS Q2Q%3.63%
EPS Next Y5.86%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-1.9%
Revenue growth 5Y3.96%
Sales Q2Q%6.27%
Revenue Next Year4.05%
Revenue Next 2Y4.03%
Revenue Next 3Y3.78%
Revenue Next 5YN/A
EBIT growth 1Y0.26%
EBIT growth 3Y-1.55%
EBIT growth 5Y7.03%
EBIT Next Year9.82%
EBIT Next 3Y6.73%
EBIT Next 5YN/A
FCF growth 1Y-5.77%
FCF growth 3Y-3.43%
FCF growth 5Y-1.21%
OCF growth 1Y-5.64%
OCF growth 3Y-3.37%
OCF growth 5Y-1.72%

CDW CORP/DE / CDW Fundamental Analysis 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 6 / 10 to CDW CORP/DE (CDW). This can be considered as Fairly Valued.


Can you provide the profitability details for CDW CORP/DE?

CDW CORP/DE (CDW) has a profitability rating of 8 / 10.


Can you provide the financial health for CDW stock?

The financial health rating of CDW CORP/DE (CDW) is 4 / 10.


Can you provide the dividend sustainability for CDW stock?

The dividend rating of CDW CORP/DE (CDW) is 7 / 10 and the dividend payout ratio is 30.81%.