CDW CORP/DE (CDW) Stock Fundamental Analysis
NASDAQ:CDW - Nasdaq - US12514G1085 - Common Stock - Currency: USD
Taking everything into account, CDW scores 5 out of 10 in our fundamental rating. CDW was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While CDW has a great profitability rating, 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
With an excellent Return On Assets value of 7.24%, CDW belongs to the best of the industry, outperforming 87.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 46.77%, CDW belongs to the top of the industry, outperforming 99.20% of the companies in the same industry.
CDW has a better Return On Invested Capital (13.79%) than 91.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 46.77% | ||
| ROIC | 13.79% |
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
Looking at the Profit Margin, with a value of 5.10%, CDW is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
In the last couple of years the Profit Margin of CDW has grown nicely.
The Operating Margin of CDW (7.90%) is better than 76.80% of its industry peers.
In the last couple of years the Operating Margin of CDW has grown nicely.
Looking at the Gross Margin, with a value of 21.86%, CDW is doing worse than 60.00% of the companies in the same industry.
CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 5.1% | ||
| GM | 21.86% |
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.
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 2.93. 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 (2.93) which is in line with its industry peers.
CDW has a debt to FCF ratio of 5.83. This is a neutral value as CDW would need 5.83 years to pay back of all of its debts.
CDW's Debt to FCF ratio of 5.83 is in line compared to the rest of the industry. CDW outperforms 57.60% of its industry peers.
A Debt/Equity ratio of 2.42 is on the high side and indicates that CDW has dependencies on debt financing.
CDW's Debt to Equity ratio of 2.42 is on the low side compared to the rest of the industry. CDW is outperformed by 96.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 5.83 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.56
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.32 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a Current ratio of 1.32. This is amonst the worse of the industry: CDW underperforms 82.40% of its industry peers.
CDW has a Quick Ratio of 1.20. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.20, CDW is doing worse than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for CDW have decreased by -0.10% in the last year.
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.
The Revenue has been growing slightly by 0.85% in the past year.
Measured over the past years, CDW shows a small growth in Revenue. The Revenue has been growing by 3.09% on average per year.
EPS 1Y (TTM)-0.1%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%11.98%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%6.7%
3.2 Future
The Earnings Per Share is expected to grow by 6.76% on average over the next years.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y3.29%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y3.78%
Revenue Next 3Y4.43%
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.
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
The Price/Earnings ratio is 18.17, which indicates a rather expensive current valuation of CDW.
Based on the Price/Earnings ratio, CDW is valued cheaper than 83.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CDW is valued a bit cheaper.
CDW is valuated correctly with a Price/Forward Earnings ratio of 16.95.
78.40% of the companies in the same industry are more expensive than CDW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (21.76), we can say CDW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.95 |
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 72.00% of the companies listed in the same industry.
72.80% 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 | 23.25 | ||
| EV/EBITDA | 14.54 |
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.
The excellent profitability rating of CDW may justify a higher PE ratio.
PEG (NY)5.53
PEG (5Y)1.95
EPS Next 2Y4.78%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.37%.
Compared to an average industry Dividend Yield of 1.76, CDW pays a better dividend. On top of this CDW pays more dividend than 89.60% of the companies listed in the same industry.
With a Dividend Yield of 1.37, CDW pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
CDW pays out 30.52% 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.
DP30.52%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
177.38
-2.32 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners96.46%
Inst Owner Change0.01%
Ins Owners0.19%
Ins Owner Change6.32%
Market Cap23.36B
Analysts76.47
Price Target215.44 (21.46%)
Short Float %2.81%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP30.52%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.08%
Min EPS beat(2)5.67%
Max EPS beat(2)8.48%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-8.79%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)0.44%
EPS beat(12)7
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)2.25%
Revenue beat(2)2
Avg Revenue beat(2)4%
Min Revenue beat(2)3.66%
Max Revenue beat(2)4.34%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)4.34%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-2.17%
Revenue beat(16)6
Avg Revenue beat(16)-1%
PT rev (1m)-0.69%
PT rev (3m)-6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.95 | ||
| P/S | 1.1 | ||
| P/FCF | 23.25 | ||
| P/OCF | 20.77 | ||
| P/B | 10.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.54 |
EPS(TTM)9.76
EY5.5%
EPS(NY)10.46
Fwd EY5.9%
FCF(TTM)7.63
FCFY4.3%
OCF(TTM)8.54
OCFY4.81%
SpS161.93
BVpS17.64
TBVpS-27.54
PEG (NY)5.53
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 46.77% | ||
| ROCE | 18.24% | ||
| ROIC | 13.79% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 49.02% | ||
| OM | 7.9% | ||
| PM (TTM) | 5.1% | ||
| GM | 21.86% | ||
| FCFM | 4.71% |
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-Score6
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 5.83 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 42.42% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 6.77 | ||
| Cash Conversion | 57.15% | ||
| Profit Quality | 92.44% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.93 |
F-Score6
WACC8.84%
ROIC/WACC1.56
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)-0.1%
EPS 3Y6.14%
EPS 5Y9.3%
EPS Q2Q%11.98%
EPS Next Y3.29%
EPS Next 2Y4.78%
EPS Next 3Y6.76%
EPS Next 5YN/A
Revenue 1Y (TTM)0.85%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%6.7%
Revenue Next Year3.77%
Revenue Next 2Y3.78%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y1.88%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.93%
EBIT Next 3Y6.98%
EBIT Next 5YN/A
FCF growth 1Y-16.45%
FCF growth 3Y19.04%
FCF growth 5Y7.86%
OCF growth 1Y-14.84%
OCF growth 3Y17.64%
OCF growth 5Y4.45%