CDW CORP/DE (CDW)
US12514G1085 - Common Stock
CDW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
The Return On Assets of CDW (7.72%) is better than 86.99% of its industry peers.
Looking at the Return On Equity, with a value of 47.24%, CDW belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
CDW's Return On Invested Capital of 14.21% is amongst the best of the industry. CDW outperforms 92.68% 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 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 47.24% | ||
| ROIC | 14.21% |
ROA(3y)8.1%
ROA(5y)8.39%
ROE(3y)87.9%
ROE(5y)80.26%
ROIC(3y)15.14%
ROIC(5y)16.16%
1.3 Margins
With a decent Profit Margin value of 5.33%, CDW is doing good in the industry, outperforming 73.17% of the companies in the same industry.
CDW's Profit Margin has improved in the last couple of years.
CDW's Operating Margin of 8.05% is fine compared to the rest of the industry. CDW outperforms 76.42% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
With a Gross Margin value of 22.09%, CDW is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 5.33% | ||
| GM | 22.09% |
OM growth 3Y7.19%
OM growth 5Y5.29%
PM growth 3Y6.54%
PM growth 5Y5.47%
GM growth 3Y7.78%
GM growth 5Y5.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CDW is still creating some value.
Compared to 1 year ago, CDW has less shares outstanding
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
CDW has an Altman-Z score of 3.07. This indicates that CDW is financially healthy and has little risk of bankruptcy at the moment.
CDW has a Altman-Z score of 3.07. This is comparable to the rest of the industry: CDW outperforms 52.03% of its industry peers.
The Debt to FCF ratio of CDW is 4.50, which is a neutral value as it means it would take CDW, 4.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CDW (4.50) is better than 60.16% of its industry peers.
A Debt/Equity ratio of 2.39 is on the high side and indicates that CDW has dependencies on debt financing.
The Debt to Equity ratio of CDW (2.39) is worse than 96.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.49
WACC9.51%
2.3 Liquidity
CDW has a Current Ratio of 1.40. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
CDW's Current ratio of 1.40 is on the low side compared to the rest of the industry. CDW is outperformed by 82.11% of its industry peers.
A Quick Ratio of 1.28 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a Quick ratio of 1.28. This is in the lower half of the industry: CDW underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for CDW have decreased by -1.94% in the last year.
Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.83% on average per year.
The Revenue has decreased by -4.43% in the past year.
The Revenue has been growing slightly by 5.65% on average over the past years.
EPS 1Y (TTM)-1.94%
EPS 3Y14.45%
EPS 5Y13.83%
EPS Q2Q%-3.31%
Revenue 1Y (TTM)-4.43%
Revenue growth 3Y5%
Revenue growth 5Y5.65%
Sales Q2Q%-1.98%
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 3.80% on average per year.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.66% yearly.
EPS Next Y-4.16%
EPS Next 2Y1.73%
EPS Next 3Y3.8%
EPS Next 5YN/A
Revenue Next Year-4.19%
Revenue Next 2Y-0.75%
Revenue Next 3Y1.66%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CDW is valuated rather expensively with a Price/Earnings ratio of 18.58.
Compared to the rest of the industry, the Price/Earnings ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 79.67% of the companies listed in the same industry.
CDW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 17.48, the valuation of CDW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 77.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (23.82), we can say CDW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than 71.54% of the companies in the same industry.
78.86% of the companies in the same industry are more expensive than CDW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 14.55 |
4.3 Compensation for Growth
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y1.73%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.38%.
In the last 3 months the price of CDW has falen by -22.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.95, CDW pays a better dividend. On top of this CDW pays more dividend than 91.06% of the companies listed in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
On average, the dividend of CDW grows each year by 20.78%, 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)20.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
29.93% 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.
DP29.93%
EPS Next 2Y1.73%
EPS Next 3Y3.8%
CDW CORP/DE
NASDAQ:CDW (11/22/2024, 12:06:56 PM)
178.74
+0.57 (+0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 17.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 47.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.05% | ||
| PM (TTM) | 5.33% | ||
| GM | 22.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.94%
EPS 3Y14.45%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.43%
Revenue growth 3Y5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y