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PC CONNECTION INC (CNXN) Stock Fundamental Analysis

NASDAQ:CNXN - Nasdaq - US69318J1007 - Common Stock - Currency: USD

65.57  -0.16 (-0.24%)

After market: 65.57 0 (0%)

Fundamental Rating

6

Overall CNXN gets a fundamental rating of 6 out of 10. We evaluated CNXN against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CNXN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CNXN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

CNXN had positive earnings in the past year.
In the past year CNXN had a positive cash flow from operations.
Each year in the past 5 years CNXN has been profitable.
In the past 5 years CNXN always reported a positive cash flow from operatings.
CNXN Yearly Net Income VS EBIT VS OCF VS FCFCNXN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

The Return On Assets of CNXN (7.01%) is better than 84.80% of its industry peers.
CNXN has a better Return On Equity (9.97%) than 75.20% of its industry peers.
CNXN's Return On Invested Capital of 8.39% is fine compared to the rest of the industry. CNXN outperforms 79.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNXN is in line with the industry average of 9.16%.
Industry RankSector Rank
ROA 7.01%
ROE 9.97%
ROIC 8.39%
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
CNXN Yearly ROA, ROE, ROICCNXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of CNXN (3.04%) is better than 64.80% of its industry peers.
CNXN's Profit Margin has been stable in the last couple of years.
The Operating Margin of CNXN (3.53%) is comparable to the rest of the industry.
CNXN's Operating Margin has declined in the last couple of years.
The Gross Margin of CNXN (18.43%) is worse than 69.60% of its industry peers.
In the last couple of years the Gross Margin of CNXN has grown nicely.
Industry RankSector Rank
OM 3.53%
PM (TTM) 3.04%
GM 18.43%
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
CNXN Yearly Profit, Operating, Gross MarginsCNXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXN is destroying value.
Compared to 1 year ago, CNXN has less shares outstanding
Compared to 5 years ago, CNXN has about the same amount of shares outstanding.
CNXN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CNXN Yearly Shares OutstandingCNXN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
CNXN Yearly Total Debt VS Total AssetsCNXN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 6.96 indicates that CNXN is not in any danger for bankruptcy at the moment.
CNXN has a Altman-Z score of 6.96. This is amongst the best in the industry. CNXN outperforms 83.20% of its industry peers.
There is no outstanding debt for CNXN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.96
ROIC/WACC0.88
WACC9.54%
CNXN Yearly LT Debt VS Equity VS FCFCNXN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 3.16 indicates that CNXN has no problem at all paying its short term obligations.
The Current ratio of CNXN (3.16) is better than 64.80% of its industry peers.
CNXN has a Quick Ratio of 2.73. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
CNXN has a Quick ratio of 2.73. This is in the better half of the industry: CNXN outperforms 69.60% of its industry peers.
Industry RankSector Rank
Current Ratio 3.16
Quick Ratio 2.73
CNXN Yearly Current Assets VS Current LiabilitesCNXN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.77% over the past year.
CNXN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.20% yearly.
The Revenue has been growing slightly by 4.21% in the past year.
Measured over the past years, CNXN shows a decrease in Revenue. The Revenue has been decreasing by -0.13% on average per year.
EPS 1Y (TTM)5.77%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%2%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%10.92%

3.2 Future

The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
CNXN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y6.03%
EPS Next 2Y9.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.01%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
CNXN Yearly Revenue VS EstimatesCNXN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
CNXN Yearly EPS VS EstimatesCNXN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 19.87, the valuation of CNXN can be described as rather expensive.
Based on the Price/Earnings ratio, CNXN is valued a bit cheaper than the industry average as 78.40% of the companies are valued more expensively.
CNXN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.65, which indicates a correct valuation of CNXN.
80.00% of the companies in the same industry are more expensive than CNXN, based on the Price/Forward Earnings ratio.
CNXN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
Industry RankSector Rank
PE 19.87
Fwd PE 16.65
CNXN Price Earnings VS Forward Price EarningsCNXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNXN indicates a rather cheap valuation: CNXN is cheaper than 86.40% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNXN indicates a somewhat cheap valuation: CNXN is cheaper than 67.20% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.47
EV/EBITDA 10.25
CNXN Per share dataCNXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNXN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CNXN may justify a higher PE ratio.
PEG (NY)3.29
PEG (5Y)16.6
EPS Next 2Y9.39%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

CNXN has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, CNXN pays a better dividend. On top of this CNXN pays more dividend than 85.60% of the companies listed in the same industry.
With a Dividend Yield of 0.74, CNXN pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

The dividend of CNXN has a limited annual growth rate of 4.51%.
CNXN has been paying a dividend for over 5 years, so it has already some track record.
The dividend of CNXN decreased recently.
Dividend Growth(5Y)4.51%
Div Incr Years1
Div Non Decr Years1
CNXN Yearly Dividends per shareCNXN Yearly Dividends per shareYearly Dividends per share 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

CNXN pays out 13.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of CNXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.5%
EPS Next 2Y9.39%
EPS Next 3YN/A
CNXN Yearly Income VS Free CF VS DividendCNXN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
CNXN Dividend Payout.CNXN Dividend Payout, showing the Payout Ratio.CNXN Dividend Payout.PayoutRetained Earnings

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PC CONNECTION INC

NASDAQ:CNXN (7/18/2025, 8:00:01 PM)

After market: 65.57 0 (0%)

65.57

-0.16 (-0.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners43.73%
Inst Owner Change0%
Ins Owners28.79%
Ins Owner Change-0.12%
Market Cap1.67B
Analysts43.33
Price Target77.52 (18.22%)
Short Float %3.17%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP13.5%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-13 2025-05-13 (0.15)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-15.03%
Max EPS beat(2)20.48%
EPS beat(4)2
Avg EPS beat(4)5.47%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)5
Avg EPS beat(8)3.01%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)6.12%
Revenue beat(2)1
Avg Revenue beat(2)1.71%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)6.39%
Revenue beat(4)2
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-2.42%
Revenue beat(12)4
Avg Revenue beat(12)-2.23%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)0.88%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.92%
Valuation
Industry RankSector Rank
PE 19.87
Fwd PE 16.65
P/S 0.58
P/FCF 29.47
P/OCF 25.94
P/B 1.9
P/tB 2.08
EV/EBITDA 10.25
EPS(TTM)3.3
EY5.03%
EPS(NY)3.94
Fwd EY6%
FCF(TTM)2.23
FCFY3.39%
OCF(TTM)2.53
OCFY3.85%
SpS113.04
BVpS34.53
TBVpS31.55
PEG (NY)3.29
PEG (5Y)16.6
Profitability
Industry RankSector Rank
ROA 7.01%
ROE 9.97%
ROCE 11.35%
ROIC 8.39%
ROICexc 13.55%
ROICexgc 15.69%
OM 3.53%
PM (TTM) 3.04%
GM 18.43%
FCFM 1.97%
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
ROICexc(3y)14.03%
ROICexc(5y)12.66%
ROICexgc(3y)16.27%
ROICexgc(5y)14.67%
ROCE(3y)12.69%
ROCE(5y)12.51%
ROICexcg growth 3Y8.7%
ROICexcg growth 5Y-0.74%
ROICexc growth 3Y7.7%
ROICexc growth 5Y-0.84%
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
F-Score5
Asset Turnover2.3
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 59.9%
Cap/Sales 0.27%
Interest Coverage 20293
Cash Conversion 56.17%
Profit Quality 64.65%
Current Ratio 3.16
Quick Ratio 2.73
Altman-Z 6.96
F-Score5
WACC9.54%
ROIC/WACC0.88
Cap/Depr(3y)69.99%
Cap/Depr(5y)75.1%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.34%
Profit Quality(3y)148.69%
Profit Quality(5y)111.78%
High Growth Momentum
Growth
EPS 1Y (TTM)5.77%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%2%
EPS Next Y6.03%
EPS Next 2Y9.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%10.92%
Revenue Next Year7.29%
Revenue Next 2Y6.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.26%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year12.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.88%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-30.75%
OCF growth 3Y44.4%
OCF growth 5Y36.57%