US12514G1085 - Common Stock

**CDW** gets a fundamental rating of **5** out of 10. The analysis compared the fundamentals against 128 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** is valued correctly, but it does not seem to be growing.

In the past year **CDW** was profitable.

In the past year **CDW** had a positive cash flow from operations.

In the past 5 years **CDW** has always been profitable.

Each year in the past 5 years **CDW** had a positive operating cash flow.

With an excellent **Return On Equity** value of **50.98%**, **CDW** belongs to the best of the industry, outperforming **99.21%** of the companies in the same industry.

With an excellent **Return On Invested Capital** value of **15.75%**, **CDW** belongs to the best of the industry, outperforming **92.06%** 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 **9.11%**.

The last **Return On Invested Capital** (**15.75%**) for **CDW** is above the 3 year average (**15.14%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.26% | ||

ROE | 50.98% | ||

ROIC | 15.75% |

ROA(3y)8.1%

ROA(5y)8.39%

ROE(3y)87.9%

ROE(5y)80.26%

ROIC(3y)15.14%

ROIC(5y)16.16%

Looking at the **Profit Margin**, with a value of **5.16%**, **CDW** is in the better half of the industry, outperforming **69.84%** of the companies in the same industry.

With a decent **Operating Margin** value of **7.82%**, **CDW** is doing good in the industry, outperforming **75.40%** of the companies in the same industry.

In the last couple of years the **Operating Margin** of **CDW** has grown nicely.

Looking at the **Gross Margin**, with a value of **21.88%**, **CDW** is doing worse than **61.11%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 7.82% | ||

PM (TTM) | 5.16% | ||

GM | 21.88% |

OM growth 3Y7.19%

OM growth 5Y5.29%

PM growth 3Y6.54%

PM growth 5Y5.47%

GM growth 3Y7.78%

GM growth 5Y5.48%

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.

The number of shares outstanding for **CDW** has been reduced compared to 5 years ago.

Compared to 1 year ago, **CDW** has an improved debt to assets ratio.

An Altman-Z score of **3.68** indicates that **CDW** is not in any danger for bankruptcy at the moment.

Looking at the **Altman-Z score**, with a value of **3.68**, **CDW** is in the better half of the industry, outperforming **65.08%** of the companies in the same industry.

The Debt to FCF ratio of **CDW** is **3.69**, which is a good value as it means it would take **CDW**, **3.69** years of fcf income to pay off all of its debts.

Looking at the **Debt to FCF ratio**, with a value of **3.69**, **CDW** is in the better half of the industry, outperforming **62.70%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 2.35 | ||

Debt/FCF | 3.69 | ||

Altman-Z | 3.68 |

ROIC/WACC1.84

WACC8.56%

A Current Ratio of **1.26** indicates that **CDW** should not have too much problems paying its short term obligations.

Looking at the **Current ratio**, with a value of **1.26**, **CDW** is doing worse than **83.33%** of the companies in the same industry.

A Quick Ratio of **1.13** indicates that **CDW** should not have too much problems paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.26 | ||

Quick Ratio | 1.13 |

The **Earnings Per Share** has been growing by **13.83%** on average over the past years. This is quite good.

The **Revenue** has decreased by **-7.67%** in the past year.

The **Revenue** has been growing slightly by **5.65%** on average over the past years.

EPS 1Y (TTM)1.56%

EPS 3Y14.45%

EPS 5Y13.83%

EPS Q2Q%-5.42%

Revenue 1Y (TTM)-7.67%

Revenue growth 3Y5%

Revenue growth 5Y5.65%

Sales Q2Q%-4.51%

The **Earnings Per Share** is expected to grow by **8.12%** on average over the next years. This is quite good.

Based on estimates for the next years, **CDW** will show a small growth in **Revenue**. The Revenue will grow by **4.40%** on average per year.

EPS Next Y3.45%

EPS Next 2Y6.81%

EPS Next 3Y8.12%

EPS Next 5YN/A

Revenue Next Year0.23%

Revenue Next 2Y3.03%

Revenue Next 3Y4.4%

Revenue Next 5YN/A

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 decreasing: in the next years the growth will be less than in the last years.

The **Price/Earnings** ratio is **24.10**, which indicates a rather expensive current valuation of **CDW**.

65.87% of the companies in the same industry are more expensive than **CDW**, based on the **Price/Earnings** ratio.

Based on the **Price/Forward Earnings** ratio, **CDW** is valued a bit cheaper than 61.11% of the companies in the same industry.

The average S&P500 **Price/Forward Earnings** ratio is at **20.22**. **CDW** is around the same levels.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 24.1 | ||

Fwd PE | 20.89 |

The rest of the industry has a similar **Enterprise Value to EBITDA** ratio as **CDW**.

72.22% 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 | 20.72 | ||

EV/EBITDA | 18.74 |

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.

PEG (NY)6.99

PEG (5Y)1.74

EPS Next 2Y6.81%

EPS Next 3Y8.12%

With a **Yearly Dividend Yield** of **1.10%**, **CDW** has a reasonable but not impressive dividend return.

Compared to an average S&P500 **Dividend Yield** of **2.39**, **CDW**'s dividend is way lower than the S&P500 average.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.1% |

The dividend of **CDW** is nicely growing with an annual growth rate of **20.78%**!

Dividend Growth(5Y)20.78%

Div Incr Years10

Div Non Decr Years10

DP29.8%

EPS Next 2Y6.81%

EPS Next 3Y8.12%

**CDW CORP/DE**

NASDAQ:CDW (6/21/2024, 7:00:02 PM)

After market: 235.25 -0.24 (-0.1%)**235.49**

**+3.56 (+1.53%) **

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 Cap31.65B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.1% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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Min EPS beat(2)

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EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

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Min Revenue beat(4)

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Revenue beat(8)

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Revenue beat(12)

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Revenue beat(16)

Avg Revenue beat(16)

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 | 24.1 | ||

Fwd PE | 20.89 | ||

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)6.99

PEG (5Y)1.74

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.26% | ||

ROE | 50.98% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 7.82% | ||

PM (TTM) | 5.16% | ||

GM | 21.88% | ||

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 Turnover1.6

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 2.35 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.26 | ||

Quick Ratio | 1.13 | ||

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)

High Growth Momentum

Growth

EPS 1Y (TTM)1.56%

EPS 3Y14.45%

EPS 5Y

EPS Q2Q%

EPS Next Y3.45%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-7.67%

Revenue growth 3Y5%

Revenue growth 5Y

Sales 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