CDW CORP/DE (CDW) Fundamental Analysis & Valuation
NASDAQ:CDW • US12514G1085
118.65 USD
-2.09 (-1.73%)
At close: Mar 10, 2026
118.65 USD
0 (0%)
After Hours: 3/10/2026, 8:11:25 PM
This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, CDW scores 6 out of 10 in our fundamental rating. CDW was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CDW also has an excellent dividend rating.
1. CDW Profitability Analysis
1.1 Basic Checks
- In the past year CDW was profitable.
- CDW had a positive operating cash flow in the past year.
- 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
- The Return On Assets of CDW (6.65%) is better than 83.06% of its industry peers.
- Looking at the Return On Equity, with a value of 40.93%, CDW belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.09%, CDW belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CDW is significantly above the industry average of 8.67%.
| Industry Rank | Sector 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%
1.3 Margins
- CDW has a better Profit Margin (4.76%) than 69.35% 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 7.38%, CDW is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
- CDW's Operating Margin has improved in the last couple of years.
- CDW's Gross Margin of 21.73% is on the low side compared to the rest of the industry. CDW is outperformed by 63.71% of its industry peers.
- CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. CDW Health Analysis
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.
- CDW has less shares outstanding than it did 1 year ago.
- CDW has less shares outstanding than it did 5 years ago.
- CDW has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.42 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.42, CDW is doing worse than 62.10% of the companies in the same industry.
- The Debt to FCF ratio of CDW is 5.17, which is a neutral value as it means it would take CDW, 5.17 years of fcf income to pay off all of its debts.
- CDW's Debt to FCF ratio of 5.17 is fine compared to the rest of the industry. CDW outperforms 62.10% of its industry peers.
- A Debt/Equity ratio of 1.77 is on the high side and indicates that CDW has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.77, CDW is doing worse than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.69
WACC8.36%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that CDW should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.18, CDW is not doing good in the industry: 84.68% of the companies in the same industry are doing better.
- A Quick Ratio of 1.10 indicates that CDW should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.10, CDW is not doing good in the industry: 71.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. CDW Growth Analysis
3.1 Past
- CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.25%.
- Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
- The Revenue has been growing slightly by 6.79% in the past year.
- CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
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.
- Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. CDW Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.83 indicates a reasonable valuation of CDW.
- Based on the Price/Earnings ratio, CDW is valued cheaper than 91.13% of the companies in the same industry.
- CDW is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
- CDW is valuated reasonably with a Price/Forward Earnings ratio of 11.17.
- CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 87.10% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (24.39), we can say CDW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CDW is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
- CDW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CDW is cheaper than 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 10.55 |
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)2.02
PEG (5Y)1.35
EPS Next 2Y6.71%
EPS Next 3Y7.36%
5. CDW Dividend Analysis
5.1 Amount
- CDW has a Yearly Dividend Yield of 2.03%.
- CDW's Dividend Yield is rather good when compared to the industry average which is at 0.46. CDW pays more dividend than 95.97% 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 | 2.03% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
- 30.81% 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.
DP30.81%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
CDW Fundamentals: All Metrics, Ratios and Statistics
118.65
-2.09 (-1.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)05-05 2026-05-05/bmo
Inst Owners96.98%
Inst Owner Change2.8%
Ins Owners0.2%
Ins Owner Change0.23%
Market Cap15.30B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target174.02 (46.67%)
Short Float %3.89%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-25 2026-02-25 (0.63)
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)-4.16%
PT rev (3m)-7.1%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)3.74%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.17 | ||
| P/S | 0.68 | ||
| P/FCF | 14.07 | ||
| P/OCF | 12.7 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)10.03
EY8.45%
EPS(NY)10.62
Fwd EY8.95%
FCF(TTM)8.44
FCFY7.11%
OCF(TTM)9.34
OCFY7.87%
SpS173.84
BVpS20.2
TBVpS-25.14
PEG (NY)2.02
PEG (5Y)1.35
Graham Number67.52
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.42 |
F-Score5
WACC8.36%
ROIC/WACC1.69
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 Year7.88%
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 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 8 / 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 11.83 and the Price/Book (PB) ratio is 5.87.
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 30.81%.