CDW CORP/DE (CDW) Stock Fundamental Analysis
USA - NASDAQ:CDW - US12514G1085 - Common Stock
162.16 USD
-0.71 (-0.44%)
We assign a fundamental rating of 6 out of 10 to CDW. CDW was compared to 125 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 correct valuation and a medium growth rate.
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.
CDW had positive earnings in each of the past 5 years.
Each year in the past 5 years CDW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CDW (7.05%) is better than 86.40% of its industry peers.
The Return On Equity of CDW (43.64%) is better than 97.60% of its industry peers.
With an excellent Return On Invested Capital value of 13.36%, CDW belongs to the best of the industry, outperforming 90.40% 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 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROIC | 13.36% |
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 better Profit Margin (4.92%) than 68.80% of its industry peers.
CDW's Profit Margin has improved in the last couple of years.
CDW has a better Operating Margin (7.64%) than 72.80% of its industry peers.
CDW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.57%, CDW is not doing good in the industry: 64.00% 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 | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% |
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
CDW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CDW has less shares outstanding
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
An Altman-Z score of 2.83 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CDW has a Altman-Z score of 2.83. This is in the lower half of the industry: CDW underperforms 61.60% of its industry peers.
The Debt to FCF ratio of CDW is 5.53, which is a neutral value as it means it would take CDW, 5.53 years of fcf income to pay off all of its debts.
CDW's Debt to FCF ratio of 5.53 is fine compared to the rest of the industry. CDW outperforms 60.80% of its industry peers.
CDW has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CDW (2.28) is worse than 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.52
WACC8.77%
2.3 Liquidity
CDW has a Current Ratio of 1.35. 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 1.35 is on the low side compared to the rest of the industry. CDW is outperformed by 79.20% of its industry peers.
CDW has a Quick Ratio of 1.22. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
CDW has a worse Quick ratio (1.22) than 68.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.54% over the past year.
CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.30% yearly.
Looking at the last year, CDW shows a small growth in Revenue. The Revenue has grown by 4.47% in the last year.
The Revenue has been growing slightly by 3.09% on average over the past years.
EPS 1Y (TTM)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
3.2 Future
CDW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.24% yearly.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
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.
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
CDW is valuated correctly with a Price/Earnings ratio of 16.45.
88.80% of the companies in the same industry are more expensive than CDW, based on the Price/Earnings ratio.
CDW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.36, which indicates a correct valuation of CDW.
CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 88.00% of the companies in the same industry.
CDW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
CDW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CDW is cheaper than 76.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CDW is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.86 | ||
| EV/EBITDA | 13.53 |
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.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)1.77
EPS Next 2Y5.27%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, CDW has a reasonable but not impressive dividend return.
CDW's Dividend Yield is rather good when compared to the industry average which is at 1.39. CDW pays more dividend than 93.60% of the companies in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
On average, the dividend of CDW grows each year by 14.59%, 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)14.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CDW pays out 30.73% 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.
DP30.73%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
NASDAQ:CDW (9/19/2025, 3:16:19 PM)
162.16
-0.71 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change-1.23%
Ins Owners0.19%
Ins Owner Change0.56%
Market Cap21.25B
Analysts76.47
Price Target211.15 (30.21%)
Short Float %2.81%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP30.73%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.91%
Min EPS beat(2)3.35%
Max EPS beat(2)8.48%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-8.79%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.23%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)1.78%
Revenue beat(2)2
Avg Revenue beat(2)5.85%
Min Revenue beat(2)4.34%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)2.72%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.91%
PT rev (3m)-2.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)1.13%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)2.68%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.36 | ||
| P/S | 0.97 | ||
| P/FCF | 20.86 | ||
| P/OCF | 18.8 | ||
| P/B | 8.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)9.86
EY6.08%
EPS(NY)10.56
Fwd EY6.51%
FCF(TTM)7.77
FCFY4.79%
OCF(TTM)8.63
OCFY5.32%
SpS166.93
BVpS18.82
TBVpS-26.37
PEG (NY)3.69
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 43.64% | ||
| ROCE | 17.67% | ||
| ROIC | 13.36% | ||
| ROICexc | 14.08% | ||
| ROICexgc | 41.37% | ||
| OM | 7.64% | ||
| PM (TTM) | 4.92% | ||
| GM | 21.57% | ||
| FCFM | 4.66% |
ROA(3y)8.05%
ROA(5y)8.02%
ROE(3y)56.48%
ROE(5y)74.07%
ROIC(3y)15.27%
ROIC(5y)15.08%
ROICexc(3y)16.3%
ROICexc(5y)16.93%
ROICexgc(3y)66.87%
ROICexgc(5y)69.73%
ROCE(3y)20.19%
ROCE(5y)19.95%
ROICexcg growth 3Y-5.25%
ROICexcg growth 5Y-6.87%
ROICexc growth 3Y2.46%
ROICexc growth 5Y-5.66%
OM growth 3Y4.89%
OM growth 5Y4.57%
PM growth 3Y2.62%
PM growth 5Y4.66%
GM growth 3Y8.54%
GM growth 5Y5.39%
F-Score5
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 38.91% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 57.72% | ||
| Profit Quality | 94.63% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.83 |
F-Score5
WACC8.77%
ROIC/WACC1.52
Cap/Depr(3y)47.75%
Cap/Depr(5y)46.54%
Cap/Sales(3y)0.61%
Cap/Sales(5y)0.63%
Profit Quality(3y)115.61%
Profit Quality(5y)112.52%
High Growth Momentum
Growth
EPS 1Y (TTM)1.54%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%4%
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue 1Y (TTM)4.47%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%10.2%
Revenue Next Year6.59%
Revenue Next 2Y4.71%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.98%
EBIT Next 3Y6.44%
EBIT Next 5YN/A
FCF growth 1Y-1.36%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-3.24%
OCF growth 3Y17.64%
OCF growth 5Y4.45%