CDW CORP/DE (CDW) Fundamental Analysis & Valuation

NASDAQ:CDW • US12514G1085

Current stock price

120.49 USD
-1.41 (-1.16%)
Last:

This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

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.
  • CDW had positive earnings in each of the past 5 years.
  • In the past 5 years CDW always reported a positive cash flow from operatings.
CDW Yearly Net Income VS EBIT VS OCF VS FCFCDW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • CDW's Return On Assets of 6.65% is amongst the best of the industry. CDW outperforms 83.06% of its industry peers.
  • The Return On Equity of CDW (40.93%) is better than 99.19% of its industry peers.
  • CDW has a better Return On Invested Capital (14.09%) than 91.94% of its industry peers.
  • CDW had an Average Return On Invested Capital over the past 3 years of 14.53%. This is significantly above the industry average of 8.36%.
Industry RankSector 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%
CDW Yearly ROA, ROE, ROICCDW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100

1.3 Margins

  • CDW has a Profit Margin of 4.76%. This is in the better half of the industry: CDW outperforms 69.35% of its industry peers.
  • CDW's Profit Margin has improved in the last couple of years.
  • CDW has a better Operating Margin (7.38%) than 70.97% of its industry peers.
  • In the last couple of years the Operating Margin of CDW has grown nicely.
  • With a Gross Margin value of 21.73%, CDW is not doing good in the industry: 63.71% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of CDW has grown nicely.
Industry RankSector 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%
CDW Yearly Profit, Operating, Gross MarginsCDW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

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.
  • The number of shares outstanding for CDW has been reduced compared to 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.
CDW Yearly Shares OutstandingCDW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CDW Yearly Total Debt VS Total AssetsCDW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • CDW has an Altman-Z score of 2.43. 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.
  • CDW has a Altman-Z score of 2.43. This is comparable to the rest of the industry: CDW outperforms 40.32% of its industry peers.
  • 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.
  • CDW's Debt to FCF ratio of 5.17 is fine compared to the rest of the industry. CDW outperforms 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.
  • CDW has a worse Debt to Equity ratio (1.77) than 93.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 5.17
Altman-Z 2.43
ROIC/WACC1.6
WACC8.78%
CDW Yearly LT Debt VS Equity VS FCFCDW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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.
  • With a Quick ratio value of 1.10, CDW is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.1
CDW Yearly Current Assets VS Current LiabilitesCDW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 7.36% on average over the next years.
  • The Revenue is expected to grow by 3.78% on average over the next years.
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.
CDW Yearly Revenue VS EstimatesCDW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B 25B
CDW Yearly EPS VS EstimatesCDW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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7

4. CDW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.01 indicates a correct 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 91.13% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, CDW is valued rather cheaply.
  • A Price/Forward Earnings ratio of 11.35 indicates a reasonable valuation of CDW.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 85.48% of the companies listed in the same industry.
  • CDW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
Industry RankSector Rank
PE 12.01
Fwd PE 11.35
CDW Price Earnings VS Forward Price EarningsCDW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 82.26% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 86.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.28
EV/EBITDA 10.63
CDW Per share dataCDW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)2.05
PEG (5Y)1.37
EPS Next 2Y6.71%
EPS Next 3Y7.36%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CDW Dividend Analysis

5.1 Amount

  • CDW has a Yearly Dividend Yield of 2.11%. 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 0.46. CDW pays more dividend than 95.97% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, CDW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.11%

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 Years11
Div Non Decr Years11
CDW Yearly Dividends per shareCDW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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 Yearly Income VS Free CF VS DividendCDW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
CDW Dividend Payout.CDW Dividend Payout, showing the Payout Ratio.CDW Dividend Payout.PayoutRetained Earnings

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CDW Fundamentals: All Metrics, Ratios and Statistics

CDW CORP/DE

NASDAQ:CDW (3/25/2026, 2:16:22 PM)

120.49

-1.41 (-1.16%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)05-05
Inst Owners96.98%
Inst Owner Change2.8%
Ins Owners0.2%
Ins Owner Change5.53%
Market Cap15.54B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target174.02 (44.43%)
Short Float %3.93%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-25
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)0%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.21%
Valuation
Industry RankSector Rank
PE 12.01
Fwd PE 11.35
P/S 0.69
P/FCF 14.28
P/OCF 12.9
P/B 5.96
P/tB N/A
EV/EBITDA 10.63
EPS(TTM)10.03
EY8.32%
EPS(NY)10.62
Fwd EY8.81%
FCF(TTM)8.44
FCFY7%
OCF(TTM)9.34
OCFY7.75%
SpS173.84
BVpS20.2
TBVpS-25.14
PEG (NY)2.05
PEG (5Y)1.37
Graham Number67.52
Profitability
Industry RankSector 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 RankSector 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 2.43
F-Score5
WACC8.78%
ROIC/WACC1.6
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.


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 12.01 and the Price/Book (PB) ratio is 5.96.


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%.