125.4 USD
-2 (-1.57%)
125.4 USD
0 (0%)
Taking everything into account, CDW scores 6 out of 10 in our fundamental rating. CDW was compared to 123 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 is valued quite cheap, while showing a decent growth score. This is a good combination! Finally CDW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CDW was profitable.
- CDW had a positive operating cash flow in the past year.
- Each year in the past 5 years CDW has been profitable.
- CDW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CDW has a better Return On Assets (6.92%) than 84.55% of its industry peers.
- Looking at the Return On Equity, with a value of 41.39%, CDW belongs to the top of the industry, outperforming 98.37% of the companies in the same industry.
- CDW's Return On Invested Capital of 12.86% is amongst the best of the industry. CDW outperforms 89.43% of its industry peers.
- CDW had an Average Return On Invested Capital over the past 3 years of 15.27%. This is significantly above the industry average of 8.87%.
| 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
- CDW's Profit Margin of 4.76% is fine compared to the rest of the industry. CDW outperforms 68.29% of its industry peers.
- CDW's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 7.39%, CDW is doing good in the industry, outperforming 72.36% of the companies in the same industry.
- CDW's Operating Margin has improved in the last couple of years.
- CDW has a Gross Margin of 21.60%. This is in the lower half of the industry: CDW underperforms 63.41% of its industry peers.
- CDW's Gross Margin has improved in the last couple of years.
| 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.
- 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
- CDW has an Altman-Z score of 2.63. 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 worse Altman-Z score (2.63) than 64.23% 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 of 5.58. This is in the better half of the industry: CDW outperforms 60.16% of its industry peers.
- CDW has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external 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 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.76
WACC7.3%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
- The Current ratio of CDW (1.39) is worse than 78.86% of its industry peers.
- A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
- CDW has a Quick ratio of 1.30. This is in the lower half of the industry: CDW underperforms 63.41% 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%.
- Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.30% on average per year.
- Looking at the last year, CDW shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
- CDW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.09% yearly.
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
- Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 6.47% on average per year.
- CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year6.64%
Revenue Next 2Y4.48%
Revenue Next 3Y4.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.62, the valuation of CDW can be described as correct.
- Based on the Price/Earnings ratio, CDW is valued cheaper than 87.80% of the companies in the same industry.
- CDW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- CDW is valuated reasonably with a Price/Forward Earnings ratio of 11.75.
- Based on the Price/Forward Earnings ratio, CDW is valued cheaper than 89.43% of the companies in the same industry.
- CDW is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 11.75 |
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 84.55% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CDW is valued cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.18 | ||
| EV/EBITDA | 11.17 |
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)2.63
PEG (5Y)1.36
EPS Next 2Y5.83%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
- CDW has a Yearly Dividend Yield of 1.95%.
- In the last 3 months the price of CDW has falen by -21.32%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- CDW's Dividend Yield is rather good when compared to the industry average which is at 0.46. CDW pays more dividend than 94.31% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CDW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
- The dividend of CDW is nicely growing with an annual growth rate of 14.59%!
- 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)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 2Y5.83%
EPS Next 3Y6.47%
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 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 12.62 and the Price/Book (PB) ratio is 6.43.
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 31.39%.