CDW CORP/DE (CDW) Fundamental Analysis & Valuation

NASDAQ:CDW • US12514G1085

Current stock price

125.53 USD
-1.22 (-0.96%)
At close:
126.01 USD
+0.48 (+0.38%)
After Hours:

This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CDW Profitability Analysis

1.1 Basic Checks

  • In the past year CDW was profitable.
  • 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.
CDW Yearly Net Income VS EBIT VS OCF VS FCFCDW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.65%, CDW belongs to the top of the industry, outperforming 83.06% of the companies in the same industry.
  • CDW has a Return On Equity of 40.93%. This is amongst the best in the industry. CDW outperforms 99.19% of its industry peers.
  • The Return On Invested Capital of CDW (14.09%) is better than 92.74% of its industry peers.
  • CDW had an Average Return On Invested Capital over the past 3 years of 14.53%. This is significantly above the industry average of 8.11%.
Industry RankSector Rank
ROA 6.65%
ROE 40.93%
ROIC 14.09%
ROA(3y)7.44%
ROA(5y)7.66%
ROE(3y)46.93%
ROE(5y)70.09%
ROIC(3y)14.53%
ROIC(5y)14.52%
CDW Yearly ROA, ROE, ROICCDW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.76%, CDW is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
  • CDW's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CDW (7.38%) is better than 70.97% of its industry peers.
  • CDW's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CDW (21.73%) is worse than 64.52% of its industry peers.
  • In the last couple of years the Gross Margin of CDW has grown nicely.
Industry RankSector Rank
OM 7.38%
PM (TTM) 4.76%
GM 21.73%
OM growth 3Y0.35%
OM growth 5Y2.95%
PM growth 3Y0.44%
PM growth 5Y2.17%
GM growth 3Y3.27%
GM growth 5Y4.57%
CDW Yearly Profit, Operating, Gross MarginsCDW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. CDW Health Analysis

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.
  • 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.
CDW Yearly Shares OutstandingCDW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CDW Yearly Total Debt VS Total AssetsCDW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.45 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 2.45. This is comparable to the rest of the industry: CDW outperforms 41.13% of its industry peers.
  • CDW has a debt to FCF ratio of 5.17. This is a neutral value as CDW would need 5.17 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 5.17, CDW is doing good in the industry, outperforming 61.29% of the companies in the same industry.
  • CDW has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
  • CDW has a Debt to Equity ratio of 1.77. This is amonst the worse of the industry: CDW underperforms 93.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 5.17
Altman-Z 2.45
ROIC/WACC1.57
WACC8.96%
CDW Yearly LT Debt VS Equity VS FCFCDW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • CDW has a Current Ratio of 1.18. 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 worse Current ratio (1.18) than 84.68% of its industry peers.
  • A Quick Ratio of 1.10 indicates that CDW should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.10, CDW is doing worse than 72.58% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.1
CDW Yearly Current Assets VS Current LiabilitesCDW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CDW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.25% over the past year.
  • CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
  • The Revenue has been growing slightly by 6.79% in the past year.
  • Measured over the past years, CDW shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)5.25%
EPS 3Y0.81%
EPS 5Y8.76%
EPS Q2Q%3.63%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-1.9%
Revenue growth 5Y3.96%
Sales Q2Q%6.27%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.36% on average over the next years.
  • The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y5.86%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y4.03%
Revenue Next 3Y3.78%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CDW Yearly Revenue VS EstimatesCDW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B 25B
CDW Yearly EPS VS EstimatesCDW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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7

4. CDW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.52, which indicates a correct valuation of CDW.
  • 91.94% of the companies in the same industry are more expensive than CDW, based on the Price/Earnings ratio.
  • CDW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.86.
  • The Price/Forward Earnings ratio is 11.82, which indicates a very decent valuation of CDW.
  • CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 87.90% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (37.39), we can say CDW is valued rather cheaply.
Industry RankSector Rank
PE 12.52
Fwd PE 11.82
CDW Price Earnings VS Forward Price EarningsCDW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CDW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CDW is cheaper than 83.06% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CDW is valued cheaper than 87.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.88
EV/EBITDA 10.87
CDW Per share dataCDW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)2.14
PEG (5Y)1.43
EPS Next 2Y6.71%
EPS Next 3Y7.36%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CDW Dividend Analysis

5.1 Amount

  • CDW has a Yearly Dividend Yield of 1.99%.
  • CDW's Dividend Yield is rather good when compared to the industry average which is at 0.45. CDW pays more dividend than 95.16% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CDW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.99%

5.2 History

  • On average, the dividend of CDW grows each year by 10.23%, 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)10.23%
Div Incr Years12
Div Non Decr Years12
CDW Yearly Dividends per shareCDW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • CDW pays out 30.81% 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.
DP30.81%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
CDW Yearly Income VS Free CF VS DividendCDW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
CDW Dividend Payout.CDW Dividend Payout, showing the Payout Ratio.CDW Dividend Payout.PayoutRetained Earnings

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CDW Fundamentals: All Metrics, Ratios and Statistics

CDW CORP/DE

NASDAQ:CDW (4/10/2026, 8:10:51 PM)

After market: 126.01 +0.48 (+0.38%)

125.53

-1.22 (-0.96%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)05-06
Inst Owners97.17%
Inst Owner Change0.01%
Ins Owners0.24%
Ins Owner Change5.54%
Market Cap16.19B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target170.96 (36.19%)
Short Float %3.58%
Short Ratio2.55
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-25
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.26%
Min EPS beat(2)2.37%
Max EPS beat(2)4.15%
EPS beat(4)4
Avg EPS beat(4)4.59%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)5
Avg EPS beat(8)0.2%
EPS beat(12)8
Avg EPS beat(12)1.14%
EPS beat(16)11
Avg EPS beat(16)1.58%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)3.16%
Revenue beat(4)3
Avg Revenue beat(4)3.42%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)4
Avg Revenue beat(8)1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)-1.76%
PT rev (3m)-8.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
Industry RankSector Rank
PE 12.52
Fwd PE 11.82
P/S 0.72
P/FCF 14.88
P/OCF 13.44
P/B 6.21
P/tB N/A
EV/EBITDA 10.87
EPS(TTM)10.03
EY7.99%
EPS(NY)10.62
Fwd EY8.46%
FCF(TTM)8.44
FCFY6.72%
OCF(TTM)9.34
OCFY7.44%
SpS173.84
BVpS20.2
TBVpS-25.14
PEG (NY)2.14
PEG (5Y)1.43
Graham Number67.52
Profitability
Industry RankSector Rank
ROA 6.65%
ROE 40.93%
ROCE 18.81%
ROIC 14.09%
ROICexc 15.15%
ROICexgc 53.12%
OM 7.38%
PM (TTM) 4.76%
GM 21.73%
FCFM 4.85%
ROA(3y)7.44%
ROA(5y)7.66%
ROE(3y)46.93%
ROE(5y)70.09%
ROIC(3y)14.53%
ROIC(5y)14.52%
ROICexc(3y)15.7%
ROICexc(5y)15.43%
ROICexgc(3y)62.67%
ROICexgc(5y)61.96%
ROCE(3y)19.39%
ROCE(5y)19.38%
ROICexgc growth 3Y-5.94%
ROICexgc growth 5Y-9.74%
ROICexc growth 3Y-2.82%
ROICexc growth 5Y-7.08%
OM growth 3Y0.35%
OM growth 5Y2.95%
PM growth 3Y0.44%
PM growth 5Y2.17%
GM growth 3Y3.27%
GM growth 5Y4.57%
F-Score5
Asset Turnover1.4
Health
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 5.17
Debt/EBITDA 2.37
Cap/Depr 39.61%
Cap/Sales 0.52%
Interest Coverage 7.07
Cash Conversion 61.77%
Profit Quality 102.02%
Current Ratio 1.18
Quick Ratio 1.1
Altman-Z 2.45
F-Score5
WACC8.96%
ROIC/WACC1.57
Cap/Depr(3y)46.3%
Cap/Depr(5y)47.03%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.56%
Profit Quality(3y)113.5%
Profit Quality(5y)103.61%
High Growth Momentum
Growth
EPS 1Y (TTM)5.25%
EPS 3Y0.81%
EPS 5Y8.76%
EPS Q2Q%3.63%
EPS Next Y5.86%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-1.9%
Revenue growth 5Y3.96%
Sales Q2Q%6.27%
Revenue Next Year4.05%
Revenue Next 2Y4.03%
Revenue Next 3Y3.78%
Revenue Next 5YN/A
EBIT growth 1Y0.26%
EBIT growth 3Y-1.55%
EBIT growth 5Y7.03%
EBIT Next Year9.82%
EBIT Next 3Y6.73%
EBIT Next 5YN/A
FCF growth 1Y-5.77%
FCF growth 3Y-3.43%
FCF growth 5Y-1.21%
OCF growth 1Y-5.64%
OCF growth 3Y-3.37%
OCF growth 5Y-1.72%

CDW CORP/DE / CDW Fundamental Analysis 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 for CDW stock?

ChartMill assigns a valuation rating of 7 / 10 to CDW CORP/DE (CDW). This can be considered as Undervalued.


Can you provide the profitability details for CDW CORP/DE?

CDW CORP/DE (CDW) has a profitability rating of 8 / 10.


Can you provide the financial health for CDW stock?

The financial health rating of CDW CORP/DE (CDW) is 4 / 10.


Can you provide the dividend sustainability for CDW stock?

The dividend rating of CDW CORP/DE (CDW) is 7 / 10 and the dividend payout ratio is 30.81%.