58.51 USD
-0.51 (-0.86%)
58.51 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CNXN. CNXN was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CNXN has an excellent financial health rating, but there are some minor concerns on its profitability. CNXN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CNXN was profitable.
- CNXN had a positive operating cash flow in the past year.
- In the past 5 years CNXN has always been profitable.
- Each year in the past 5 years CNXN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CNXN (6.41%) is better than 79.03% of its industry peers.
- CNXN has a Return On Equity of 9.28%. This is in the better half of the industry: CNXN outperforms 71.77% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.12%, CNXN is in the better half of the industry, outperforming 76.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CNXN is in line with the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROIC | 8.12% |
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
1.3 Margins
- With a decent Profit Margin value of 2.91%, CNXN is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- CNXN's Profit Margin has been stable in the last couple of years.
- CNXN has a Operating Margin of 3.52%. This is comparable to the rest of the industry: CNXN outperforms 58.06% of its industry peers.
- In the last couple of years the Operating Margin of CNXN has declined.
- CNXN has a Gross Margin of 18.53%. This is in the lower half of the industry: CNXN underperforms 67.74% of its industry peers.
- In the last couple of years the Gross Margin of CNXN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% |
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXN is destroying value.
- The number of shares outstanding for CNXN has been reduced compared to 1 year ago.
- The number of shares outstanding for CNXN remains at a similar level compared to 5 years ago.
- CNXN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CNXN has an Altman-Z score of 6.34. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
- CNXN has a better Altman-Z score (6.34) than 79.03% of its industry peers.
- CNXN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.34 |
ROIC/WACC0.51
WACC15.84%
2.3 Liquidity
- A Current Ratio of 3.06 indicates that CNXN has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.06, CNXN is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
- CNXN has a Quick Ratio of 2.71. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
- CNXN has a Quick ratio of 2.71. This is in the better half of the industry: CNXN outperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
- The earnings per share for CNXN have decreased by -5.28% in the last year.
- The Earnings Per Share has been growing slightly by 1.20% on average over the past years.
- CNXN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
- The Revenue has been decreasing by -0.13% on average over the past years.
EPS 1Y (TTM)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
3.2 Future
- The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y4.02%
EPS Next 2Y8.9%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y3.97%
Revenue Next 3Y4.49%
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.
4. Valuation
4.1 Price/Earnings Ratio
- CNXN is valuated rather expensively with a Price/Earnings ratio of 18.11.
- Based on the Price/Earnings ratio, CNXN is valued cheaper than 83.06% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CNXN to the average of the S&P500 Index (27.38), we can say CNXN is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 15.00, the valuation of CNXN can be described as correct.
- CNXN's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 86.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, CNXN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15 |
4.2 Price Multiples
- 94.35% of the companies in the same industry are more expensive than CNXN, based on the Enterprise Value to EBITDA ratio.
- CNXN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNXN is cheaper than 73.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.52 | ||
| EV/EBITDA | 7.65 |
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.
- CNXN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.51
PEG (5Y)15.14
EPS Next 2Y8.9%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
- CNXN has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- CNXN's Dividend Yield is rather good when compared to the industry average which is at 0.46. CNXN pays more dividend than 86.29% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, CNXN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
- CNXN has decreased its dividend recently.
Dividend Growth(5Y)4.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CNXN pays out 16.89% 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.
DP16.89%
EPS Next 2Y8.9%
EPS Next 3Y10.91%
58.51
-0.51 (-0.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-03 2026-02-03/amc
Inst Owners42.19%
Inst Owner Change0.04%
Ins Owners28.36%
Ins Owner Change0.08%
Market Cap1.48B
Revenue(TTM)2.88B
Net Income(TTM)83.73M
Analysts43.33
Price Target77.52 (32.49%)
Short Float %2.62%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP16.89%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-5.38%
Max EPS beat(2)5.08%
EPS beat(4)2
Avg EPS beat(4)1.29%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)4
Avg EPS beat(8)-0.12%
EPS beat(12)6
Avg EPS beat(12)0%
EPS beat(16)10
Avg EPS beat(16)5.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-2.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.83%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15 | ||
| P/S | 0.51 | ||
| P/FCF | 26.52 | ||
| P/OCF | 23.35 | ||
| P/B | 1.64 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)3.23
EY5.52%
EPS(NY)3.9
Fwd EY6.67%
FCF(TTM)2.21
FCFY3.77%
OCF(TTM)2.51
OCFY4.28%
SpS114.01
BVpS35.75
TBVpS32.79
PEG (NY)4.51
PEG (5Y)15.14
Graham Number50.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROCE | 10.99% | ||
| ROIC | 8.12% | ||
| ROICexc | 14.32% | ||
| ROICexgc | 16.72% | ||
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% | ||
| FCFM | 1.94% |
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%
ROICexgc growth 3Y8.7%
ROICexgc 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 Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.91% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 101253 | ||
| Cash Conversion | 55.85% | ||
| Profit Quality | 66.53% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 | ||
| Altman-Z | 6.34 |
F-Score5
WACC15.84%
ROIC/WACC0.51
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)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
EPS Next Y4.02%
EPS Next 2Y8.9%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
Revenue Next Year3.38%
Revenue Next 2Y3.97%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y-1.49%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year5.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.49%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-69.12%
OCF growth 3Y44.4%
OCF growth 5Y36.57%
PC CONNECTION INC / CNXN FAQ
Can you provide the ChartMill fundamental rating for PC CONNECTION INC?
ChartMill assigns a fundamental rating of 6 / 10 to CNXN.
Can you provide the valuation status for PC CONNECTION INC?
ChartMill assigns a valuation rating of 5 / 10 to PC CONNECTION INC (CNXN). This can be considered as Fairly Valued.
Can you provide the profitability details for PC CONNECTION INC?
PC CONNECTION INC (CNXN) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CNXN stock?
The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 18.11 and the Price/Book (PB) ratio is 1.64.
What is the expected EPS growth for PC CONNECTION INC (CNXN) stock?
The Earnings per Share (EPS) of PC CONNECTION INC (CNXN) is expected to grow by 4.02% in the next year.