144.22 USD
-0.18 (-0.12%)
144.22 USD
0 (0%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 123 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
CDW had positive earnings in the past year.
CDW had a positive operating cash flow in the past year.
CDW had positive earnings in each of the past 5 years.
In the past 5 years CDW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.92%, CDW belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
CDW's Return On Equity of 41.39% is amongst the best of the industry. CDW outperforms 97.56% of its industry peers.
The Return On Invested Capital of CDW (12.86%) is better 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 9.11%.
| 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
CDW has a Profit Margin of 4.76%. This is in the better half of the industry: CDW outperforms 65.85% 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.
CDW's Gross Margin of 21.60% is on the low side compared to the rest of the industry. CDW is outperformed by 64.23% of its industry peers.
CDW's Gross Margin has improved in the last couple of years.
| 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
CDW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CDW has been reduced compared to 1 year ago.
The number of shares outstanding for CDW has been reduced compared to 5 years ago.
Compared to 1 year ago, CDW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CDW (2.76) is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 5.58, CDW is doing good in the industry, outperforming 60.16% of the companies in the same industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CDW has dependencies on debt financing.
With a Debt to Equity ratio value of 2.21, CDW is not doing good in the industry: 93.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.49
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, CDW is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
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.
The Quick ratio of CDW (1.30) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past 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 6.09% in the last year.
The Revenue has been growing slightly by 3.09% on average over the past years.
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.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
CDW is valuated correctly with a Price/Earnings ratio of 14.51.
Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 86.99% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CDW to the average of the S&P500 Index (26.31), we can say CDW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.66, the valuation of CDW can be described as correct.
Based on the Price/Forward Earnings ratio, CDW is valued cheaply inside the industry as 89.43% of the companies are valued more expensively.
CDW is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 78.86% of the companies listed in the same industry.
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 | 18.73 | ||
| EV/EBITDA | 12.52 |
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)3.24
PEG (5Y)1.56
EPS Next 2Y5.27%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, 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 2.44. CDW pays more dividend than 93.50% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of CDW grows each year by 14.59%, which is quite nice.
CDW has paid a dividend for at least 10 years, which is a reliable track record.
CDW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
31.39% 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.
DP31.39%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
144.22
-0.18 (-0.12%)
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-0.17%
Ins Owners0.19%
Ins Owner Change0.55%
Market Cap18.90B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts76.47
Price Target187.48 (30%)
Short Float %3.24%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-11.21%
PT rev (3m)-11.21%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 13.66 | ||
| P/S | 0.86 | ||
| P/FCF | 18.73 | ||
| P/OCF | 16.93 | ||
| P/B | 7.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.52 |
EPS(TTM)9.94
EY6.89%
EPS(NY)10.56
Fwd EY7.32%
FCF(TTM)7.7
FCFY5.34%
OCF(TTM)8.52
OCFY5.91%
SpS168.62
BVpS19.38
TBVpS-25.39
PEG (NY)3.24
PEG (5Y)1.56
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 | 2.76 |
F-Score6
WACC8.63%
ROIC/WACC1.49
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 14.51 and the Price/Book (PB) ratio is 7.44.
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%.