147.13 USD
+1.19 (+0.82%)
147.13 USD
0 (0%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. CDW is not valued too expensively and it also shows a decent growth rate.
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
The Return On Assets of CDW (6.92%) is better than 83.20% of its industry peers.
CDW has a Return On Equity of 41.39%. This is amongst the best in the industry. CDW outperforms 97.60% of its industry peers.
CDW has a Return On Invested Capital of 12.86%. This is amongst the best in the industry. CDW outperforms 88.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.26%.
| 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
With a decent Profit Margin value of 4.76%, CDW is doing good in the industry, outperforming 66.40% of the companies in the same industry.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW's Operating Margin of 7.39% is fine compared to the rest of the industry. CDW outperforms 72.00% 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 65.60% of its industry peers.
In the last couple of years the Gross Margin of CDW has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CDW is creating value.
Compared to 1 year ago, CDW has less shares outstanding
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
CDW has an Altman-Z score of 2.76. 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.
The Altman-Z score of CDW (2.76) is worse than 60.80% of its industry peers.
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.
CDW has a Debt to FCF ratio (5.58) which is in line with its industry peers.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CDW has dependencies on debt financing.
CDW's Debt to Equity ratio of 2.21 is on the low side compared to the rest of the industry. CDW is outperformed by 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.53
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, CDW is doing worse than 80.80% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a worse Quick ratio (1.30) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CDW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.09% in the past year.
The Revenue has been growing slightly by 3.09% on average over the past years.
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 6.50% yearly.
Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y4.8%
EPS Next 2Y5.94%
EPS Next 3Y6.5%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y4.71%
Revenue Next 3Y4.61%
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
A Price/Earnings ratio of 14.80 indicates a correct valuation of CDW.
CDW's Price/Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 87.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of CDW to the average of the S&P500 Index (26.28), we can say CDW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.76, CDW is valued correctly.
88.00% of the companies in the same industry are more expensive than CDW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.52. CDW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDW indicates a somewhat cheap valuation: CDW is cheaper than 78.40% of the companies listed in the same industry.
83.20% 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 | 18.99 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CDW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)1.59
EPS Next 2Y5.94%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, CDW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, CDW pays a better dividend. On top of this CDW pays more dividend than 93.60% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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
31.39% 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.
DP31.39%
EPS Next 2Y5.94%
EPS Next 3Y6.5%
147.13
+1.19 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-0.16%
Ins Owners0.19%
Ins Owner Change0.51%
Market Cap19.15B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target187.32 (27.32%)
Short Float %3.43%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.86%
Min EPS beat(2)2.37%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)4.97%
Min EPS beat(4)2.37%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)3.1%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)7.36%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)7.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.67%
PT rev (1m)-11.06%
PT rev (3m)-11.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 13.76 | ||
| P/S | 0.87 | ||
| P/FCF | 18.99 | ||
| P/OCF | 17.15 | ||
| P/B | 7.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.56 |
EPS(TTM)9.94
EY6.76%
EPS(NY)10.7
Fwd EY7.27%
FCF(TTM)7.75
FCFY5.27%
OCF(TTM)8.58
OCFY5.83%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)3.08
PEG (5Y)1.59
Graham Number66.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 41.39% | ||
| ROCE | 17.01% | ||
| ROIC | 12.86% | ||
| ROICexc | 13.5% | ||
| ROICexgc | 37.62% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.76% | ||
| GM | 21.6% | ||
| FCFM | 4.57% |
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%
ROICexgc growth 3Y-5.25%
ROICexgc 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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 37.04% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 58.03% | ||
| Profit Quality | 95.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.76 |
F-Score6
WACC8.42%
ROIC/WACC1.53
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)3.33%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%3.04%
EPS Next Y4.8%
EPS Next 2Y5.94%
EPS Next 3Y6.5%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.56%
Revenue Next 2Y4.71%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year8.59%
EBIT Next 3Y6.48%
EBIT Next 5YN/A
FCF growth 1Y-12.94%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.37%
OCF growth 3Y17.64%
OCF growth 5Y4.45%
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 of CDW CORP/DE (CDW) stock?
ChartMill assigns a valuation rating of 6 / 10 to CDW CORP/DE (CDW). This can be considered as Fairly Valued.
How profitable is CDW CORP/DE (CDW) stock?
CDW CORP/DE (CDW) has a profitability rating of 8 / 10.
What is the valuation of CDW CORP/DE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CDW CORP/DE (CDW) is 14.8 and the Price/Book (PB) ratio is 7.54.
Is the dividend of CDW CORP/DE sustainable?
The dividend rating of CDW CORP/DE (CDW) is 6 / 10 and the dividend payout ratio is 31.39%.