PC CONNECTION INC (CNXN) Stock Fundamental Analysis
USA - NASDAQ:CNXN - US69318J1007 - Common Stock
58.26 USD
-0.35 (-0.6%)
Overall CNXN gets a fundamental rating of 6 out of 10. We evaluated CNXN against 124 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CNXN was profitable.
In the past year CNXN had a positive cash flow from operations.
In the past 5 years CNXN has always been profitable.
In the past 5 years CNXN always reported a positive cash flow from operatings.
1.2 Ratios
CNXN has a better Return On Assets (6.78%) than 81.45% of its industry peers.
The Return On Equity of CNXN (9.73%) is better than 72.58% of its industry peers.
The Return On Invested Capital of CNXN (8.28%) is better than 75.81% of its industry peers.
CNXN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is in line with the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.73% | ||
| ROIC | 8.28% |
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
CNXN's Profit Margin of 2.97% is fine compared to the rest of the industry. CNXN outperforms 60.48% of its industry peers.
CNXN's Profit Margin has been stable in the last couple of years.
CNXN has a Operating Margin (3.49%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CNXN has declined.
CNXN has a worse Gross Margin (18.32%) than 70.16% of its industry peers.
In the last couple of years the Gross Margin of CNXN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.49% | ||
| PM (TTM) | 2.97% | ||
| GM | 18.32% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNXN is creating some value.
CNXN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNXN remains at a similar level compared to 5 years ago.
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.
2.2 Solvency
CNXN has an Altman-Z score of 6.55. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
CNXN has a better Altman-Z score (6.55) than 79.84% 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 | 6.55 |
ROIC/WACC0.9
WACC9.17%
2.3 Liquidity
CNXN has a Current Ratio of 3.09. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.09, CNXN is doing good in the industry, outperforming 63.71% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.73, CNXN is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.73 |
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 decrease in Revenue. In the last year, the revenue decreased by -1.70%.
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)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
3.2 Future
CNXN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.91% yearly.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y6.03%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
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 accelerating.
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
Based on the Price/Earnings ratio of 18.04, the valuation of CNXN can be described as rather expensive.
CNXN's Price/Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNXN to the average of the S&P500 Index (26.13), we can say CNXN is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.37, which indicates a correct valuation of CNXN.
88.71% of the companies in the same industry are more expensive than CNXN, based on the Price/Forward Earnings ratio.
CNXN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
CNXN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXN is cheaper than 91.94% of the companies in the same industry.
CNXN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNXN is cheaper than 70.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.18 | ||
| EV/EBITDA | 8.66 |
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)2.99
PEG (5Y)15.07
EPS Next 2Y11.01%
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 2.07. CNXN pays more dividend than 85.48% of the companies in the same industry.
With a Dividend Yield of 1.02, CNXN pays less dividend than the S&P500 average, which is at 2.39.
| 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 15.08% of its income as dividend. This is a sustainable payout ratio.
CNXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.08%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
NASDAQ:CNXN (11/6/2025, 10:26:31 AM)
58.26
-0.35 (-0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners42.86%
Inst Owner Change-0.3%
Ins Owners28.2%
Ins Owner Change-0.21%
Market Cap1.48B
Revenue(TTM)2.80B
Net Income(TTM)86.05M
Analysts43.33
Price Target77.52 (33.06%)
Short Float %2.49%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP15.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.78%
Min EPS beat(2)5.08%
Max EPS beat(2)20.48%
EPS beat(4)2
Avg EPS beat(4)2.51%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)6.47%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)6.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-2.01%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)7
Avg Revenue beat(16)-0.66%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 14.37 | ||
| P/S | 0.51 | ||
| P/FCF | 33.18 | ||
| P/OCF | 28.41 | ||
| P/B | 1.67 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 8.66 |
EPS(TTM)3.23
EY5.54%
EPS(NY)4.05
Fwd EY6.96%
FCF(TTM)1.76
FCFY3.01%
OCF(TTM)2.05
OCFY3.52%
SpS114
BVpS34.85
TBVpS31.89
PEG (NY)2.99
PEG (5Y)15.07
Graham Number50.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.73% | ||
| ROCE | 11.21% | ||
| ROIC | 8.28% | ||
| ROICexc | 13.45% | ||
| ROICexgc | 15.56% | ||
| OM | 3.49% | ||
| PM (TTM) | 2.97% | ||
| GM | 18.32% | ||
| FCFM | 1.54% |
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-Score6
Asset Turnover2.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 60.27% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 25257 | ||
| Cash Conversion | 45.9% | ||
| Profit Quality | 51.81% | ||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.73 | ||
| Altman-Z | 6.55 |
F-Score6
WACC9.17%
ROIC/WACC0.9
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 Y6.03%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
EBIT growth 1Y-3.54%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year8.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-73.67%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-70.87%
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.
What is the valuation status for CNXN stock?
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.
What are the PE and PB ratios of PC CONNECTION INC (CNXN) stock?
The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 18.04 and the Price/Book (PB) ratio is 1.67.
Can you provide the dividend sustainability for CNXN stock?
The dividend rating of PC CONNECTION INC (CNXN) is 5 / 10 and the dividend payout ratio is 15.08%.