124.76 USD
-6.99 (-5.31%)
124.76 USD
0 (0%)
Overall CDW gets a fundamental rating of 6 out of 10. We evaluated CDW against 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally CDW also has an excellent dividend rating.
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.
- 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 6.92%, CDW belongs to the best of the industry, outperforming 84.68% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.39%, CDW belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
- The Return On Invested Capital of CDW (12.86%) is better than 89.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 8.82%.
| 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 has a Profit Margin of 4.76%. This is in the better half of the industry: CDW outperforms 67.74% of its industry peers.
- In the last couple of years the Profit Margin of CDW has grown nicely.
- CDW has a better Operating Margin (7.39%) than 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 21.60% is on the low side compared to the rest of the industry. CDW is outperformed by 63.71% 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
- 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 2.63 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.63, CDW is doing worse than 62.90% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.58, CDW is in line with its industry, outperforming 59.68% of the companies in the same industry.
- 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 92.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.03
WACC12.45%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.39, CDW is not doing good in the industry: 78.23% of the companies in the same industry are doing better.
- CDW has a Quick Ratio of 1.30. This is a normal value and indicates that CDW is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.30, CDW is not doing good in the industry: 62.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.33% over the past year.
- The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
- CDW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.09%.
- 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 4.61% yearly.
EPS Next Y4.8%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y4.7%
Revenue Next 3Y4.61%
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.
- 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 12.55 indicates a correct valuation of CDW.
- Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 89.52% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CDW to the average of the S&P500 Index (26.94), we can say CDW is valued rather cheaply.
- CDW is valuated reasonably with a Price/Forward Earnings ratio of 11.69.
- 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.
- When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (23.94), we can say CDW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.69 |
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 84.68% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CDW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 11.13 |
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)2.62
PEG (5Y)1.35
EPS Next 2Y5.83%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
- CDW has a Yearly Dividend Yield of 1.90%.
- The stock price of CDW dropped by -21.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.46, CDW pays a better dividend. On top of this CDW pays more dividend than 94.35% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, CDW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
- The dividend of CDW is nicely growing with an annual growth rate of 14.59%!
- 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 31.39% 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.
DP31.39%
EPS Next 2Y5.83%
EPS Next 3Y6.47%
124.76
-6.99 (-5.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners98.29%
Inst Owner Change0.54%
Ins Owners0.19%
Ins Owner Change0.1%
Market Cap16.24B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target186.02 (49.1%)
Short Float %3.08%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)-0.69%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.73 | ||
| P/FCF | 16.1 | ||
| P/OCF | 14.55 | ||
| P/B | 6.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.13 |
EPS(TTM)9.94
EY7.97%
EPS(NY)10.67
Fwd EY8.56%
FCF(TTM)7.75
FCFY6.21%
OCF(TTM)8.58
OCFY6.88%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)2.62
PEG (5Y)1.35
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 | 2.63 |
F-Score6
WACC12.45%
ROIC/WACC1.03
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 2Y5.83%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.59%
Revenue Next 2Y4.7%
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 3Y6.45%
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 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 12.55 and the Price/Book (PB) ratio is 6.4.
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%.