CDW CORP/DE (CDW) Fundamental Analysis & Valuation
NASDAQ:CDW • US12514G1085
Current stock price
123.69 USD
+0.22 (+0.18%)
At close:
123.69 USD
0 (0%)
After Hours:
This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- In the past 5 years CDW has always been profitable.
- Each year in the past 5 years CDW had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.65%, CDW belongs to the best of the industry, outperforming 83.06% of the companies in the same industry.
- CDW's Return On Equity of 40.93% is amongst the best of the industry. CDW outperforms 99.19% of its industry peers.
- The Return On Invested Capital of CDW (14.09%) is better than 91.94% 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 8.20%.
| 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's Profit Margin of 4.76% is fine compared to the rest of the industry. CDW outperforms 69.35% of its industry peers.
- In the last couple of years the Profit Margin of CDW has grown nicely.
- CDW has a Operating Margin of 7.38%. This is in the better half of the industry: CDW outperforms 70.97% of its industry peers.
- In the last couple of years the Operating Margin of CDW has grown nicely.
- 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
- 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.
- Compared to 5 years ago, CDW has less shares outstanding
- Compared to 1 year ago, CDW has an improved debt to assets ratio.
2.2 Solvency
- CDW has an Altman-Z score of 2.44. 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 2.44, CDW is in line with its industry, outperforming 41.94% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of CDW (5.17) is better than 61.29% of its industry peers.
- CDW has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.77, CDW is not doing good in the industry: 93.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.58
WACC8.9%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that CDW should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.18, CDW is doing worse than 84.68% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that CDW should not have too much problems paying its short term obligations.
- CDW has a worse Quick ratio (1.10) than 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. CDW Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 5.25% over the past year.
- The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
- CDW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.79%.
- 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
- Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
- CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
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
- Based on the Price/Earnings ratio of 12.33, the valuation of CDW can be described as correct.
- Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 91.13% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CDW to the average of the S&P500 Index (26.21), we can say CDW is valued rather cheaply.
- CDW is valuated reasonably with a Price/Forward Earnings ratio of 11.65.
- CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 86.29% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (23.13), we can say CDW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 81.45% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CDW is valued cheaply inside the industry as 85.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)1.41
EPS Next 2Y6.71%
EPS Next 3Y7.36%
5. CDW Dividend Analysis
5.1 Amount
- CDW has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
- CDW's Dividend Yield is rather good when compared to the industry average which is at 0.47. CDW pays more dividend than 94.35% of the companies in the same industry.
- CDW's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
- The dividend of CDW is nicely growing with an annual growth rate of 10.23%!
- CDW has paid a dividend for at least 10 years, which is a reliable track record.
- CDW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.23%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- 30.81% of the earnings are spent on dividend by CDW. This is a low number and sustainable payout ratio.
- The dividend of CDW is growing, but the earnings are growing slower. 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
123.69
+0.22 (+0.18%)
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 Change0%
Ins Owners0.2%
Ins Owner Change5.54%
Market Cap15.95B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target170.96 (38.22%)
Short Float %3.58%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years12
Div Non Decr Years12
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)-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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.65 | ||
| P/S | 0.71 | ||
| P/FCF | 14.66 | ||
| P/OCF | 13.24 | ||
| P/B | 6.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.73 |
EPS(TTM)10.03
EY8.11%
EPS(NY)10.62
Fwd EY8.58%
FCF(TTM)8.44
FCFY6.82%
OCF(TTM)9.34
OCFY7.55%
SpS173.84
BVpS20.2
TBVpS-25.14
PEG (NY)2.1
PEG (5Y)1.41
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 | 2.44 |
F-Score5
WACC8.9%
ROIC/WACC1.58
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 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%.