CDW CORP/DE (CDW) Stock Fundamental Analysis
USA - NASDAQ:CDW - US12514G1085 - Common Stock
139.49 USD
-0.32 (-0.23%)
Taking everything into account, CDW scores 6 out of 10 in our fundamental rating. CDW was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While CDW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CDW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CDW had positive earnings in the past year.
In the past year CDW had a positive cash flow from operations.
Each year in the past 5 years CDW has been profitable.
Each year in the past 5 years CDW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.92%, CDW belongs to the top of the industry, outperforming 84.55% of the companies in the same industry.
The Return On Equity of CDW (41.39%) is better than 97.56% of its industry peers.
CDW has a better Return On Invested Capital (12.86%) than 88.62% of its industry peers.
CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROIC | 12.86% |
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
The Profit Margin of CDW (4.76%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW has a Operating Margin of 7.39%. This is in the better half of the industry: CDW outperforms 71.54% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
With a Gross Margin value of 21.60%, CDW is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% |
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
Compared to 1 year ago, CDW has an improved debt to assets ratio.
2.2 Solvency
CDW has an Altman-Z score of 2.73. 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.
With a Altman-Z score value of 2.73, CDW perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
CDW has a debt to FCF ratio of 5.58. This is a neutral value as CDW would need 5.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.58, CDW is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
CDW has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
CDW's Debt to Equity ratio of 2.21 is on the low side compared to the rest of the industry. CDW is outperformed by 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.5
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a Current ratio of 1.39. This is amonst the worse of the industry: CDW underperforms 80.49% of its industry peers.
CDW has a Quick Ratio of 1.30. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CDW is doing worse than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
CDW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.09%.
CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.09% yearly.
EPS 1Y (TTM)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
3.2 Future
The Earnings Per Share is expected to grow by 6.32% on average over the next years.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
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 decreasing.
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 14.03, CDW is valued correctly.
CDW's Price/Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 86.99% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. CDW is valued slightly cheaper when compared to this.
CDW is valuated correctly with a Price/Forward Earnings ratio of 13.21.
CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 87.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. CDW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CDW is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.12 | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
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.
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)1.51
EPS Next 2Y5.27%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, CDW has a reasonable but not impressive dividend return.
CDW's Dividend Yield is rather good when compared to the industry average which is at 2.18. CDW pays more dividend than 94.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
CDW pays out 31.39% of its income as dividend. This is a sustainable payout ratio.
The dividend of CDW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.39%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
NASDAQ:CDW (11/19/2025, 2:58:28 PM)
139.49
-0.32 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.16%
Ins Owners0.19%
Ins Owner Change1.73%
Market Cap18.28B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts76.47
Price Target210.61 (50.99%)
Short Float %3.24%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.86%
Min EPS beat(2)2.37%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)4.97%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)3.1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.67%
PT rev (1m)-0.26%
PT rev (3m)-3.16%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.21 | ||
| P/S | 0.83 | ||
| P/FCF | 18.12 | ||
| P/OCF | 16.37 | ||
| P/B | 7.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.21 |
EPS(TTM)9.94
EY7.13%
EPS(NY)10.56
Fwd EY7.57%
FCF(TTM)7.7
FCFY5.52%
OCF(TTM)8.52
OCFY6.11%
SpS168.62
BVpS19.38
TBVpS-25.39
PEG (NY)3.14
PEG (5Y)1.51
Graham Number65.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROCE | 17.01% | ||
| ROIC | 12.86% | ||
| ROICexc | 13.5% | ||
| ROICexgc | 37.62% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% | ||
| FCFM | 4.57% |
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%
ROICexgc growth 3Y-5.25%
ROICexgc 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 Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 37.04% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 58.03% | ||
| Profit Quality | 95.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.73 |
F-Score6
WACC8.57%
ROIC/WACC1.5
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)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
EPS Next Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.83%
EBIT Next 3Y6.56%
EBIT Next 5YN/A
FCF growth 1Y-12.94%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.37%
OCF growth 3Y17.64%
OCF growth 5Y4.45%
CDW CORP/DE / CDW FAQ
Can you provide the ChartMill fundamental rating for CDW CORP/DE?
ChartMill assigns a fundamental rating of 6 / 10 to CDW.
What is the valuation status of CDW CORP/DE (CDW) stock?
ChartMill assigns a valuation rating of 6 / 10 to CDW CORP/DE (CDW). This can be considered as Fairly Valued.
How profitable is CDW CORP/DE (CDW) stock?
CDW CORP/DE (CDW) has a profitability rating of 8 / 10.
What is the valuation of CDW CORP/DE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 14.03 and the Price/Book (PB) ratio is 7.2.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 6 / 10 and the dividend payout ratio is 31.39%.