143.08 USD
-0.61 (-0.42%)
143.08 USD
0 (0%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 124 industry peers in the Electronic Equipment, Instruments & Components industry. CDW has an excellent profitability rating, but there are some minor concerns on its financial health. CDW has a correct valuation and a medium growth rate. Finally CDW also has an excellent dividend rating.
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.
CDW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CDW has a better Return On Assets (6.92%) than 83.06% of its industry peers.
Looking at the Return On Equity, with a value of 41.39%, CDW belongs to the top of the industry, outperforming 97.58% of the companies in the same industry.
CDW's Return On Invested Capital of 12.86% is amongst the best of the industry. CDW outperforms 88.71% 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 9.29%.
| 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 better Profit Margin (4.76%) than 66.13% of its industry peers.
CDW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.39%, CDW is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
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 65.32% of its industry peers.
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.
The number of shares outstanding for CDW has been reduced compared to 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
An Altman-Z score of 2.75 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CDW has a Altman-Z score of 2.75. This is comparable to the rest of the industry: CDW outperforms 41.13% of its industry peers.
The Debt to FCF ratio of CDW is 5.58, which is a neutral value as it means it would take CDW, 5.58 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.58, CDW perfoms like the industry average, outperforming 59.68% 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.
With a Debt to Equity ratio value of 2.21, CDW is not doing good in the industry: 93.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.51
WACC8.51%
2.3 Liquidity
CDW has a Current Ratio of 1.39. 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 Current ratio, with a value of 1.39, CDW is doing worse than 80.65% of the companies in the same industry.
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.
With a Quick ratio value of 1.30, CDW is not doing good in the industry: 63.71% of the companies in the same industry are doing better.
| 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%.
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.
The Revenue has been growing slightly by 6.09% in the past year.
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 6.50% 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 4.61% on average per year.
EPS Next Y4.8%
EPS Next 2Y5.94%
EPS Next 3Y6.5%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y4.71%
Revenue Next 3Y4.61%
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
Based on the Price/Earnings ratio of 14.39, the valuation of CDW can be described as correct.
Based on the Price/Earnings ratio, CDW is valued cheaper than 87.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.26. CDW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.38 indicates a correct valuation of CDW.
Based on the Price/Forward Earnings ratio, CDW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.68. CDW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
CDW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CDW is cheaper than 79.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 83.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3
PEG (5Y)1.55
EPS Next 2Y5.94%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, 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 0.47. CDW pays more dividend than 94.35% of the companies in the same industry.
CDW's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
On average, the dividend of CDW grows each year by 14.59%, which is quite nice.
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 2Y5.94%
EPS Next 3Y6.5%
143.08
-0.61 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-0.16%
Ins Owners0.19%
Ins Owner Change0.11%
Market Cap18.63B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target187.32 (30.92%)
Short Float %3.83%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)-11.06%
PT rev (3m)-11.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 13.38 | ||
| P/S | 0.84 | ||
| P/FCF | 18.46 | ||
| P/OCF | 16.68 | ||
| P/B | 7.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.41 |
EPS(TTM)9.94
EY6.95%
EPS(NY)10.7
Fwd EY7.48%
FCF(TTM)7.75
FCFY5.42%
OCF(TTM)8.58
OCFY5.99%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)3
PEG (5Y)1.55
Graham Number66.05
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 | 2.75 |
F-Score6
WACC8.51%
ROIC/WACC1.51
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 Y4.8%
EPS Next 2Y5.94%
EPS Next 3Y6.5%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.56%
Revenue Next 2Y4.71%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year8.59%
EBIT Next 3Y6.48%
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 14.39 and the Price/Book (PB) ratio is 7.33.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 7 / 10 and the dividend payout ratio is 31.39%.