CDW CORP/DE (CDW) Stock Fundamental Analysis
USA - NASDAQ:CDW - US12514G1085 - Common Stock
141.66 USD
-13.17 (-8.51%)
141.95 USD
+0.29 (+0.2%)
We assign a fundamental rating of 6 out of 10 to CDW. CDW was compared to 124 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CDW was profitable.
In the past year CDW had a positive cash flow from operations.
In the past 5 years CDW has always 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 7.05%, CDW belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 43.64%, CDW belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.36%, CDW belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CDW is significantly above the industry average of 9.51%.
| 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 Profit Margin of 4.92%. This is in the better half of the industry: CDW outperforms 66.94% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW's Operating Margin of 7.64% is fine compared to the rest of the industry. CDW outperforms 71.77% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
CDW's Gross Margin of 21.57% is on the low side compared to the rest of the industry. CDW is outperformed by 62.90% of its industry peers.
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
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 2.78 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CDW has a Altman-Z score (2.78) which is comparable to the rest of the industry.
CDW has a debt to FCF ratio of 5.53. This is a neutral value as CDW would need 5.53 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.53, CDW is doing good in the industry, outperforming 60.48% of the companies in the same industry.
A Debt/Equity ratio of 2.28 is on the high side and indicates that CDW has dependencies on debt financing.
With a Debt to Equity ratio value of 2.28, CDW is not doing good in the industry: 92.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.55
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.35 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a Current ratio of 1.35. This is in the lower half of the industry: CDW underperforms 79.03% 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 66.94% 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.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
Looking at the last year, CDW shows a small growth in Revenue. The Revenue has grown by 4.47% 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)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
Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 6.24% on average per year.
The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y4.46%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.51%
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
The Price/Earnings ratio is 14.37, which 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 87.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. CDW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.41 indicates a correct valuation of CDW.
CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 89.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. CDW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
79.84% of the companies in the same industry are more expensive than CDW, based on the Enterprise Value to EBITDA ratio.
CDW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CDW is cheaper than 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.22 | ||
| EV/EBITDA | 12.99 |
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)3.22
PEG (5Y)1.55
EPS Next 2Y5.27%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, CDW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.06, CDW pays a better dividend. On top of this CDW pays more dividend than 93.55% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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.
The dividend of CDW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.73%
EPS Next 2Y5.27%
EPS Next 3Y6.24%
141.66
-13.17 (-8.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.43%
Ins Owners0.19%
Ins Owner Change0.55%
Market Cap18.57B
Revenue(TTM)21.88B
Net Income(TTM)1.08B
Analysts76.47
Price Target210.61 (48.67%)
Short Float %3.2%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)-0.26%
PT rev (3m)-3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 13.41 | ||
| P/S | 0.85 | ||
| P/FCF | 18.22 | ||
| P/OCF | 16.42 | ||
| P/B | 7.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.99 |
EPS(TTM)9.86
EY6.96%
EPS(NY)10.56
Fwd EY7.45%
FCF(TTM)7.77
FCFY5.49%
OCF(TTM)8.63
OCFY6.09%
SpS166.93
BVpS18.82
TBVpS-26.37
PEG (NY)3.22
PEG (5Y)1.55
Graham Number64.62
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%
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-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 | 2.78 |
F-Score5
WACC8.62%
ROIC/WACC1.55
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 Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.51%
Revenue Next 5YN/A
EBIT growth 1Y-0.16%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.83%
EBIT Next 3Y6.56%
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%
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 14.37 and the Price/Book (PB) ratio is 7.53.
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 30.73%.