CDW CORP/DE (CDW) Stock Fundamental Analysis
USA - NASDAQ:CDW - US12514G1085 - Common Stock
163.475 USD
-3.81 (-2.28%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 125 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
In the past year CDW was profitable.
In the past year CDW had a positive cash flow from operations.
CDW had positive earnings in each of the past 5 years.
CDW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CDW has a better Return On Assets (7.05%) than 86.40% of its industry peers.
With an excellent Return On Equity value of 43.64%, CDW belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
CDW has a Return On Invested Capital of 13.36%. This is amongst the best in the industry. CDW outperforms 90.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CDW is significantly above the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROIC | 13.36% |
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
With a decent Profit Margin value of 4.92%, CDW is doing good in the industry, outperforming 68.80% of the companies in the same industry.
CDW's Profit Margin has improved in the last couple of years.
CDW has a Operating Margin of 7.64%. This is in the better half of the industry: CDW outperforms 72.80% of its industry peers.
CDW's Operating Margin has improved in the last couple of years.
CDW's Gross Margin of 21.57% is on the low side compared to the rest of the industry. CDW is outperformed by 64.00% of its industry peers.
In the last couple of years the Gross Margin of CDW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% |
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.
The number of shares outstanding for CDW has been reduced compared to 5 years ago.
CDW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.86 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.86, CDW perfoms like the industry average, outperforming 40.80% of the companies in the same industry.
The Debt to FCF ratio of CDW is 5.53, which is a neutral value as it means it would take CDW, 5.53 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.53, CDW is doing good in the industry, outperforming 60.80% of the companies in the same industry.
A Debt/Equity ratio of 2.28 is on the high side and indicates that CDW has dependencies on debt financing.
CDW's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. CDW is outperformed by 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.52
WACC8.77%
2.3 Liquidity
CDW has a Current Ratio of 1.35. 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 Current ratio value of 1.35, CDW is not doing good in the industry: 79.20% of the companies in the same industry are doing better.
CDW has a Quick Ratio of 1.22. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
CDW has a Quick ratio of 1.22. This is in the lower half of the industry: CDW underperforms 68.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.54%.
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 4.47% in the last year.
Measured over the past years, CDW shows a small growth in Revenue. The Revenue has been growing by 3.09% on average per year.
EPS 1Y (TTM)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
3.2 Future
Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 6.24% on average per year.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
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
Based on the Price/Earnings ratio of 16.58, the valuation of CDW can be described as correct.
Based on the Price/Earnings ratio, CDW is valued cheaper than 88.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. CDW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.48, which indicates a correct valuation of CDW.
Based on the Price/Forward Earnings ratio, CDW is valued cheaply inside the industry as 84.80% of the companies are valued more expensively.
CDW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CDW is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.03 | ||
| EV/EBITDA | 13.82 |
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.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.72
PEG (5Y)1.78
EPS Next 2Y5.27%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 1.39, CDW pays a better dividend. On top of this CDW pays more dividend than 93.60% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 30.73% of its income as dividend. This is a sustainable payout ratio.
CDW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.73%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
NASDAQ:CDW (9/18/2025, 3:31:10 PM)
163.475
-3.81 (-2.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change-1.23%
Ins Owners0.19%
Ins Owner Change0.56%
Market Cap21.43B
Analysts76.47
Price Target211.15 (29.16%)
Short Float %2.81%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP30.73%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.91%
Min EPS beat(2)3.35%
Max EPS beat(2)8.48%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-8.79%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.23%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)1.78%
Revenue beat(2)2
Avg Revenue beat(2)5.85%
Min Revenue beat(2)4.34%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)2.72%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.91%
PT rev (3m)-2.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)1.13%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)2.68%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.48 | ||
| P/S | 0.98 | ||
| P/FCF | 21.03 | ||
| P/OCF | 18.95 | ||
| P/B | 8.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.82 |
EPS(TTM)9.86
EY6.03%
EPS(NY)10.56
Fwd EY6.46%
FCF(TTM)7.77
FCFY4.76%
OCF(TTM)8.63
OCFY5.28%
SpS166.93
BVpS18.82
TBVpS-26.37
PEG (NY)3.72
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROCE | 17.67% | ||
| ROIC | 13.36% | ||
| ROICexc | 14.08% | ||
| ROICexgc | 41.37% | ||
| OM | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% | ||
| FCFM | 4.66% |
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%
ROICexcg growth 3Y-5.25%
ROICexcg 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-Score5
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 38.91% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 57.72% | ||
| Profit Quality | 94.63% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.86 |
F-Score5
WACC8.77%
ROIC/WACC1.52
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)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.98%
EBIT Next 3Y6.44%
EBIT Next 5YN/A
FCF growth 1Y-1.36%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-3.24%
OCF growth 3Y17.64%
OCF growth 5Y4.45%