136.2 USD
-2.19 (-1.58%)
136.2 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. CDW scores excellent on profitability, but there are some minor concerns on its financial health. CDW has a correct valuation and a medium growth rate. CDW also has an excellent dividend rating.
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.
Each year in the past 5 years CDW has 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 84.68% of the companies in the same industry.
CDW's Return On Equity of 41.39% is amongst the best of the industry. CDW outperforms 98.39% of its industry peers.
CDW has a better Return On Invested Capital (12.86%) than 89.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.00%.
| 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
CDW has a Profit Margin of 4.76%. This is in the better half of the industry: CDW outperforms 67.74% of its industry peers.
CDW's Profit Margin has improved in the last couple of years.
CDW has a better Operating Margin (7.39%) than 71.77% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW has a worse Gross Margin (21.60%) than 63.71% of its industry peers.
CDW's Gross Margin has improved in the last couple of years.
| 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
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
Compared to 5 years ago, CDW has less shares outstanding
CDW has a better debt/assets ratio than last year.
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 has a Altman-Z score of 2.70. This is in the lower half of the industry: CDW underperforms 61.29% 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.
CDW has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CDW (2.21) is worse than 92.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.46
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, CDW is doing worse than 78.23% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CDW is doing worse than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
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%.
Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.30% on average per year.
The Revenue has been growing slightly by 6.09% in the past year.
Measured over the past years, CDW shows a small growth in Revenue. The Revenue has been growing by 3.09% on average per year.
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 6.47% yearly.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.7%
Revenue Next 3Y4.61%
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.
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
With a Price/Earnings ratio of 13.70, CDW is valued correctly.
CDW's Price/Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 89.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of CDW to the average of the S&P500 Index (26.51), we can say CDW is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.76 indicates a correct valuation of CDW.
CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 89.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. CDW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
CDW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CDW is cheaper than 79.03% of the companies in the same industry.
84.68% of the companies in the same industry are more expensive than CDW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 11.9 |
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)2.86
PEG (5Y)1.47
EPS Next 2Y5.83%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, CDW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.47, CDW pays a better dividend. On top of this CDW pays more dividend than 94.35% of the companies listed in the same industry.
CDW's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 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
31.39% of the earnings are spent on dividend by CDW. This is a low number and 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 2Y5.83%
EPS Next 3Y6.47%
136.2
-2.19 (-1.58%)
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-0.16%
Ins Owners0.19%
Ins Owner Change0.09%
Market Cap17.73B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target186.02 (36.58%)
Short Float %3.95%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)-0.78%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.76 | ||
| P/S | 0.8 | ||
| P/FCF | 17.58 | ||
| P/OCF | 15.88 | ||
| P/B | 6.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)9.94
EY7.3%
EPS(NY)10.67
Fwd EY7.84%
FCF(TTM)7.75
FCFY5.69%
OCF(TTM)8.58
OCFY6.3%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)2.86
PEG (5Y)1.47
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 | 2.7 |
F-Score6
WACC8.83%
ROIC/WACC1.46
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 Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.59%
Revenue Next 2Y4.7%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year8.59%
EBIT Next 3Y6.45%
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 for 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 are the PE and PB ratios of CDW CORP/DE (CDW) stock?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 13.7 and the Price/Book (PB) ratio is 6.98.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 7 / 10 and the dividend payout ratio is 31.39%.