125.2 USD
+0.48 (+0.38%)
At close: Jan 29, 2026
125.2 USD
0 (0%)
After Hours: 1/29/2026, 8:00:03 PM
CDW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good combination! CDW also has an excellent dividend rating.
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.
- CDW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.92%, CDW belongs to the top of the industry, outperforming 84.55% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.39%, CDW belongs to the top of the industry, outperforming 98.37% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.86%, CDW belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
- CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 8.82%.
| 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 69.11% of its industry peers.
- CDW's Profit Margin has improved in the last couple of years.
- CDW has a better Operating Margin (7.39%) than 72.36% of its industry peers.
- In the last couple of years the Operating Margin of CDW has grown nicely.
- CDW has a Gross Margin of 21.60%. This is in the lower half of the industry: CDW underperforms 63.41% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CDW is creating value.
- The number of shares outstanding for CDW has been reduced compared to 1 year ago.
- CDW has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CDW has an improved debt to assets ratio.
2.2 Solvency
- CDW has an Altman-Z score of 2.63. This is not the best score and indicates that CDW is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.63, CDW is doing worse than 60.98% of the companies in the same 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.
- The Debt to FCF ratio of CDW (5.58) is better than 60.16% of its industry peers.
- CDW has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
- CDW has a Debt to Equity ratio of 2.21. This is amonst the worse of the industry: CDW underperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.75
WACC7.33%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
- CDW's Current ratio of 1.39 is on the low side compared to the rest of the industry. CDW is outperformed by 78.86% of its industry peers.
- A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.30, CDW is doing worse than 63.41% of the companies in the same industry.
| 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.
- 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
- CDW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.47% yearly.
- CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year6.64%
Revenue Next 2Y4.48%
Revenue Next 3Y4.4%
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 12.60, the valuation of CDW can be described as correct.
- Based on the Price/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/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.73, the valuation of CDW can be described as reasonable.
- CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 89.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. CDW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
- CDW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CDW is cheaper than 86.18% 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 87.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 11.16 |
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)2.62
PEG (5Y)1.35
EPS Next 2Y5.83%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
- CDW has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of CDW has falen by -21.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- CDW's Dividend Yield is rather good when compared to the industry average which is at 0.45. CDW pays more dividend than 94.31% of the companies in the same industry.
- CDW's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 2Y5.83%
EPS Next 3Y6.47%
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 for CDW stock?
ChartMill assigns a valuation rating of 7 / 10 to CDW CORP/DE (CDW). This can be considered as Undervalued.
How profitable is CDW CORP/DE (CDW) stock?
CDW CORP/DE (CDW) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CDW CORP/DE (CDW) stock?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 12.6 and the Price/Book (PB) ratio is 6.42.
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%.