CDW CORP/DE (CDW)
US12514G1085 - Common Stock
Taking everything into account, CDW scores 6 out of 10 in our fundamental rating. CDW was compared to 127 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.
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
With an excellent Return On Assets value of 8.31%, CDW belongs to the best of the industry, outperforming 86.51% of the companies in the same industry.
CDW has a better Return On Equity (54.07%) than 99.21% of its industry peers.
CDW's Return On Invested Capital of 16.19% is amongst the best of the industry. CDW outperforms 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.42%.
The last Return On Invested Capital (16.19%) for CDW is above the 3 year average (15.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 54.07% | ||
| ROIC | 16.19% |
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 has a Profit Margin of 5.17%. This is in the better half of the industry: CDW outperforms 70.63% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW has a better Operating Margin (7.86%) than 73.81% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW has a worse Gross Margin (21.76%) than 61.11% of its industry peers.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.86% | ||
| PM (TTM) | 5.17% | ||
| GM | 21.76% |
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.
The number of shares outstanding for CDW has been reduced compared to 1 year ago.
CDW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CDW has an improved debt to assets ratio.
2.2 Solvency
CDW has an Altman-Z score of 3.55. This indicates that CDW is financially healthy and has little risk of bankruptcy at the moment.
CDW has a Altman-Z score of 3.55. This is in the better half of the industry: CDW outperforms 66.67% of its industry peers.
The Debt to FCF ratio of CDW is 3.89, which is a good value as it means it would take CDW, 3.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.89, CDW is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
CDW has a Debt/Equity ratio of 2.46. This is a high value indicating a heavy dependency on external financing.
CDW's Debt to Equity ratio of 2.46 is on the low side compared to the rest of the industry. CDW is outperformed by 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.84
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a worse Current ratio (1.23) than 84.13% of its industry peers.
CDW has a Quick Ratio of 1.11. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.11, CDW is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.92% 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.
CDW shows a decrease in Revenue. In the last year, the revenue decreased by -9.99%.
The Revenue has been growing slightly by 5.65% on average over the past years.
EPS 1Y (TTM)0.92%
EPS 3Y14.45%
EPS 5Y13.83%
EPS growth Q2Q2.8%
Revenue 1Y (TTM)-9.99%
Revenue growth 3Y5%
Revenue growth 5Y5.65%
Revenue growth Q2Q-7.72%
3.2 Future
CDW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.17% yearly.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y7.03%
EPS Next 2Y8.55%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue Next Year1.84%
Revenue Next 2Y4.19%
Revenue Next 3Y5.32%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.22, the valuation of CDW can be described as rather expensive.
Based on the Price/Earnings ratio, CDW is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
CDW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 20.76, which indicates a rather expensive current valuation of CDW.
CDW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CDW is cheaper than 65.87% 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 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 20.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CDW.
Based on the Price/Free Cash Flow ratio, CDW is valued a bit cheaper than the industry average as 75.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.34 | ||
| EV/EBITDA | 17.63 |
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)3.16
PEG (5Y)1.61
EPS Next 2Y8.55%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, CDW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.75, CDW pays a better dividend. On top of this CDW pays more dividend than 90.48% of the companies listed in the same industry.
With a Dividend Yield of 1.14, CDW pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of CDW grows each year by 20.78%, which is quite nice.
CDW has been paying a dividend for at least 10 years, so it has 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)20.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
29.11% 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.
DP29.11%
EPS Next 2Y8.55%
EPS Next 3Y10.17%
CDW CORP/DE
NASDAQ:CDW (5/3/2024, 7:00:02 PM)
After market: 219.56 0 (0%)219.56
+1.15 (+0.53%)
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 Cap29.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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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 | 22.22 | ||
| Fwd PE | 20.76 | ||
| 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)3.16
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 54.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.86% | ||
| PM (TTM) | 5.17% | ||
| GM | 21.76% | ||
| 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 Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.11 | ||
| 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)
Growth
EPS 1Y (TTM)0.92%
EPS 3Y14.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.99%
Revenue growth 3Y5%
Revenue growth 5Y
Revenue growth 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