CDW CORP/DE (CDW) Stock Fundamental Analysis
NASDAQ:CDW - Nasdaq - US12514G1085 - Common Stock - Currency: USD
Overall CDW gets a fundamental rating of 5 out of 10. We evaluated CDW against 125 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.
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.
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
CDW has a Return On Assets of 7.24%. This is amongst the best in the industry. CDW outperforms 87.20% of its industry peers.
CDW has a better Return On Equity (46.77%) than 99.20% of its industry peers.
With an excellent Return On Invested Capital value of 13.79%, CDW belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 46.77% | ||
| ROIC | 13.79% |
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 5.10%. This is in the better half of the industry: CDW outperforms 73.60% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW has a Operating Margin of 7.90%. This is in the better half of the industry: CDW outperforms 76.80% 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 21.86%, CDW is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 5.1% | ||
| GM | 21.86% |
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.
CDW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CDW has less shares outstanding
CDW has a better debt/assets ratio than last year.
2.2 Solvency
CDW has an Altman-Z score of 2.91. 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's Altman-Z score of 2.91 is in line compared to the rest of the industry. CDW outperforms 41.60% of its industry peers.
The Debt to FCF ratio of CDW is 5.83, which is a neutral value as it means it would take CDW, 5.83 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CDW (5.83) is comparable to the rest of the industry.
CDW has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
CDW has a worse Debt to Equity ratio (2.42) than 96.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 5.83 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.54
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.32 indicates that CDW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, CDW is not doing good in the industry: 82.40% of the companies in the same industry are doing better.
A Quick Ratio of 1.20 indicates that CDW should not have too much problems paying its short term obligations.
The Quick ratio of CDW (1.20) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for CDW have decreased by -0.10% in the last year.
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.
Looking at the last year, CDW shows a small growth in Revenue. The Revenue has grown by 0.85% in the last year.
CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.09% yearly.
EPS 1Y (TTM)-0.1%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%11.98%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%6.7%
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 6.76% on average per year.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.43% on average per year.
EPS Next Y3.29%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y3.78%
Revenue Next 3Y4.43%
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
With a Price/Earnings ratio of 18.09, CDW is valued on the expensive side.
83.20% 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 27.51, CDW is valued a bit cheaper.
CDW is valuated correctly with a Price/Forward Earnings ratio of 16.88.
78.40% of the companies in the same industry are more expensive than CDW, based on the Price/Forward Earnings ratio.
CDW is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
CDW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CDW is cheaper than 72.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.15 | ||
| EV/EBITDA | 14.41 |
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)5.5
PEG (5Y)1.95
EPS Next 2Y4.78%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.39%.
CDW's Dividend Yield is rather good when compared to the industry average which is at 1.83. CDW pays more dividend than 89.60% of the companies in the same industry.
With a Dividend Yield of 1.39, CDW pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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
30.52% 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.
DP30.52%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
NASDAQ:CDW (7/15/2025, 10:47:51 AM)
176.59
-1.11 (-0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners96.46%
Inst Owner Change0.01%
Ins Owners0.19%
Ins Owner Change6.32%
Market Cap23.26B
Analysts76.47
Price Target215.44 (22%)
Short Float %2.85%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP30.52%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.08%
Min EPS beat(2)5.67%
Max EPS beat(2)8.48%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-8.79%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)0.44%
EPS beat(12)7
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)2.25%
Revenue beat(2)2
Avg Revenue beat(2)4%
Min Revenue beat(2)3.66%
Max Revenue beat(2)4.34%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)4.34%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-2.17%
Revenue beat(16)6
Avg Revenue beat(16)-1%
PT rev (1m)-0.71%
PT rev (3m)-6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.88 | ||
| P/S | 1.09 | ||
| P/FCF | 23.15 | ||
| P/OCF | 20.68 | ||
| P/B | 10.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.41 |
EPS(TTM)9.76
EY5.53%
EPS(NY)10.46
Fwd EY5.93%
FCF(TTM)7.63
FCFY4.32%
OCF(TTM)8.54
OCFY4.84%
SpS161.93
BVpS17.64
TBVpS-27.54
PEG (NY)5.5
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 46.77% | ||
| ROCE | 18.24% | ||
| ROIC | 13.79% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 49.02% | ||
| OM | 7.9% | ||
| PM (TTM) | 5.1% | ||
| GM | 21.86% | ||
| FCFM | 4.71% |
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%
ROICexcg growth 3Y-5.25%
ROICexcg 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 Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 5.83 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 42.42% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 6.77 | ||
| Cash Conversion | 57.15% | ||
| Profit Quality | 92.44% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.91 |
F-Score6
WACC8.96%
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)-0.1%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%11.98%
EPS Next Y3.29%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
EPS Next 5YN/A
Revenue 1Y (TTM)0.85%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%6.7%
Revenue Next Year3.77%
Revenue Next 2Y3.78%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y1.88%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.93%
EBIT Next 3Y6.98%
EBIT Next 5YN/A
FCF growth 1Y-16.45%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.84%
OCF growth 3Y17.64%
OCF growth 5Y4.45%