CDW CORP/DE (CDW)
US12514G1085 - Common Stock
We assign a fundamental rating of 6 out of 10 to CDW. CDW was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. While CDW has a great profitability rating, 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
CDW had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.72%, CDW belongs to the top of the industry, outperforming 85.60% of the companies in the same industry.
CDW has a better Return On Equity (47.24%) than 99.20% of its industry peers.
CDW has a better Return On Invested Capital (14.21%) than 92.00% of its industry peers.
CDW had an Average Return On Invested Capital over the past 3 years of 15.14%. This is significantly above the industry average of 9.08%.
| 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
Looking at the Profit Margin, with a value of 5.33%, CDW is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
CDW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.05%, CDW is in the better half of the industry, outperforming 77.60% of the companies in the same industry.
CDW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.09%, CDW is doing worse than 64.80% of the companies in the same industry.
In the last couple of years the Gross Margin of CDW has grown nicely.
| 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.
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.
CDW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.05 indicates that CDW is not in any danger for bankruptcy at the moment.
CDW's Altman-Z score of 3.05 is in line compared to the rest of the industry. CDW outperforms 48.00% 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.
CDW has a better Debt to FCF ratio (4.50) than 62.40% of its industry peers.
CDW has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
CDW has a worse Debt to Equity ratio (2.39) than 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.44
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.40 indicates that CDW should not have too much problems paying its short term obligations.
The Current ratio of CDW (1.40) is worse than 81.60% of its industry peers.
CDW has a Quick Ratio of 1.28. 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 Quick ratio of 1.28 is on the low side compared to the rest of the industry. CDW is outperformed by 69.60% 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.
CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.83% yearly.
Looking at the last year, CDW shows a decrease in Revenue. The Revenue has decreased by -4.43% in the last year.
CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.65% yearly.
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
The Earnings Per Share is expected to grow by 4.09% 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 1.96% on average per year.
EPS Next Y-4.16%
EPS Next 2Y1.93%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 18.14, which indicates a rather expensive current valuation of CDW.
Compared to the rest of the industry, the Price/Earnings ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 82.40% 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 27.20.
CDW is valuated rather expensively with a Price/Forward Earnings ratio of 17.00.
Based on the Price/Forward Earnings ratio, CDW is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (23.73), we can say CDW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than 72.00% of the companies in the same industry.
80.00% 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 | 17.34 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y1.93%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, CDW has a reasonable but not impressive dividend return.
In the last 3 months the price of CDW has falen by -22.53%. 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 1.86, CDW pays a better dividend. On top of this CDW pays more dividend than 91.20% of the companies listed in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of CDW is nicely growing with an annual growth rate of 20.78%!
CDW has been paying a dividend for at least 10 years, so it has 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)20.78%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CDW pays out 29.93% 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.
DP29.93%
EPS Next 2Y1.93%
EPS Next 3Y4.09%
CDW CORP/DE
NASDAQ:CDW (12/20/2024, 8:00:58 PM)
After market: 174 -0.53 (-0.3%)174.53
+1.25 (+0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change0.36%
Ins Owners0.2%
Ins Owner Change1.12%
Market Cap23.26B
Analysts76.67
Price Target227.99 (30.63%)
Short Float %1.99%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Dividend Growth(5Y)20.78%
DP29.93%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.47%
Min EPS beat(2)-8.79%
Max EPS beat(2)-2.14%
EPS beat(4)0
Avg EPS beat(4)-5.77%
Min EPS beat(4)-11.53%
Max EPS beat(4)-0.6%
EPS beat(8)3
Avg EPS beat(8)-1.33%
EPS beat(12)7
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.75%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-3.93%
Min Revenue beat(4)-6.67%
Max Revenue beat(4)-1.01%
Revenue beat(8)1
Avg Revenue beat(8)-3.87%
Revenue beat(12)3
Avg Revenue beat(12)-2.07%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-10.03%
PT rev (3m)-10.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.03%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 17 | ||
| P/S | 1.12 | ||
| P/FCF | 17.34 | ||
| P/OCF | 15.84 | ||
| P/B | 9.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)9.62
EY5.51%
EPS(NY)10.27
Fwd EY5.88%
FCF(TTM)10.06
FCFY5.77%
OCF(TTM)11.02
OCFY6.31%
SpS156.32
BVpS17.63
TBVpS-25.03
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 47.24% | ||
| ROCE | 18.81% | ||
| ROIC | 14.21% | ||
| ROICexc | 16.33% | ||
| ROICexgc | 61.06% | ||
| OM | 8.05% | ||
| PM (TTM) | 5.33% | ||
| GM | 22.09% | ||
| FCFM | 6.44% |
ROA(3y)8.1%
ROA(5y)8.39%
ROE(3y)87.9%
ROE(5y)80.26%
ROIC(3y)15.14%
ROIC(5y)16.16%
ROICexc(3y)15.94%
ROICexc(5y)17.91%
ROICexgc(3y)69.72%
ROICexgc(5y)73.91%
ROCE(3y)20.05%
ROCE(5y)21.39%
ROICexcg growth 3Y-1.16%
ROICexcg growth 5Y2.64%
ROICexc growth 3Y-7.42%
ROICexc growth 5Y-0.48%
OM growth 3Y7.19%
OM growth 5Y5.29%
PM growth 3Y6.54%
PM growth 5Y5.47%
GM growth 3Y7.78%
GM growth 5Y5.48%
F-Score7
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 46.55% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 7.02 | ||
| Cash Conversion | 75.25% | ||
| Profit Quality | 120.84% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.05 |
F-Score7
WACC9.89%
ROIC/WACC1.44
Cap/Depr(3y)50.34%
Cap/Depr(5y)55.32%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.78%
Profit Quality(3y)102.97%
Profit Quality(5y)112.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.94%
EPS 3Y14.45%
EPS 5Y13.83%
EPS Q2Q%-3.31%
EPS Next Y-4.16%
EPS Next 2Y1.93%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.43%
Revenue growth 3Y5%
Revenue growth 5Y5.65%
Sales Q2Q%-1.98%
Revenue Next Year-3.9%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y-0.87%
EBIT growth 3Y12.55%
EBIT growth 5Y11.24%
EBIT Next Year1.55%
EBIT Next 3Y4.49%
EBIT Next 5YN/A
FCF growth 1Y20.71%
FCF growth 3Y7.85%
FCF growth 5Y12.09%
OCF growth 1Y18.25%
OCF growth 3Y6.75%
OCF growth 5Y12.03%