146.25 USD
+1.71 (+1.18%)
146.25 USD
0 (0%)
CDW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CDW has an excellent profitability rating, but 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
Looking at the Return On Assets, with a value of 6.92%, CDW belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
CDW has a better Return On Equity (41.39%) than 97.60% of its industry peers.
CDW's Return On Invested Capital of 12.86% is amongst the best of the industry. CDW outperforms 88.80% 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 9.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROIC | 12.86% |
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
Looking at the Profit Margin, with a value of 4.76%, CDW is in the better half of the industry, outperforming 65.60% of the companies in the same industry.
In the last couple of years the Profit Margin of CDW has grown nicely.
The Operating Margin of CDW (7.39%) is better than 71.20% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
With a Gross Margin value of 21.60%, CDW is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% |
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 well above the Cost of Capital (WACC), so CDW is creating value.
The number of shares outstanding for CDW has been reduced compared to 1 year ago.
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.
2.2 Solvency
CDW has an Altman-Z score of 2.75. 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.
The Altman-Z score of CDW (2.75) is worse than 61.60% of its industry peers.
CDW has a debt to FCF ratio of 5.58. This is a neutral value as CDW would need 5.58 years to pay back of all of its debts.
CDW has a Debt to FCF ratio (5.58) which is in line with its industry peers.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CDW has dependencies on debt financing.
CDW has a worse Debt to Equity ratio (2.21) than 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.54
WACC8.36%
2.3 Liquidity
CDW has a Current Ratio of 1.39. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
CDW has a Current ratio of 1.39. This is amonst the worse of the industry: CDW underperforms 80.80% of its industry peers.
A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a worse Quick ratio (1.30) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
CDW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.09%.
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)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
3.2 Future
CDW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.32% yearly.
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
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
CDW is valuated correctly with a Price/Earnings ratio of 14.71.
Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 88.00% 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 26.46.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of CDW can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 89.60% of the companies listed in the same industry.
CDW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 78.40% 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 83.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.87 | ||
| EV/EBITDA | 12.47 |
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)3.29
PEG (5Y)1.58
EPS Next 2Y5.27%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 2.30, CDW pays a better dividend. On top of this CDW pays more dividend than 93.60% of the companies listed in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of CDW is nicely growing with an annual growth rate of 14.59%!
CDW has been paying a dividend for at least 10 years, so it has a reliable track record.
CDW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CDW pays out 31.39% 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.
DP31.39%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
146.25
+1.71 (+1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-0.17%
Ins Owners0.19%
Ins Owner Change0.51%
Market Cap19.04B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target187.32 (28.08%)
Short Float %3.43%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.86%
Min EPS beat(2)2.37%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)4.97%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)3.1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.67%
PT rev (1m)-11.21%
PT rev (3m)-11.21%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.86 | ||
| P/FCF | 18.87 | ||
| P/OCF | 17.05 | ||
| P/B | 7.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)9.94
EY6.8%
EPS(NY)10.56
Fwd EY7.22%
FCF(TTM)7.75
FCFY5.3%
OCF(TTM)8.58
OCFY5.86%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)3.29
PEG (5Y)1.58
Graham Number66.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROCE | 17.01% | ||
| ROIC | 12.86% | ||
| ROICexc | 13.5% | ||
| ROICexgc | 37.62% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% | ||
| FCFM | 4.57% |
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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 37.04% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 58.03% | ||
| Profit Quality | 95.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.75 |
F-Score6
WACC8.36%
ROIC/WACC1.54
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)6.09%
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-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.83%
EBIT Next 3Y6.56%
EBIT Next 5YN/A
FCF growth 1Y-12.94%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.37%
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 14.71 and the Price/Book (PB) ratio is 7.5.
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 31.39%.