CDW CORP/DE (CDW) Fundamental Analysis & Valuation
NASDAQ:CDW • US12514G1085
Current stock price
118.83 USD
+0.66 (+0.56%)
Last:
This CDW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- Each year in the past 5 years CDW has been profitable.
- Each year in the past 5 years CDW had a positive operating cash flow.
1.2 Ratios
- CDW has a better Return On Assets (6.65%) than 83.06% of its industry peers.
- CDW has a better Return On Equity (40.93%) than 99.19% of its industry peers.
- CDW has a Return On Invested Capital of 14.09%. This is amongst the best in the industry. CDW outperforms 91.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 8.33%.
| Industry Rank | Sector 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%
1.3 Margins
- CDW's Profit Margin of 4.76% is fine compared to the rest 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 Operating Margin of 7.38%. This is in the better half of the industry: CDW outperforms 70.97% of its industry peers.
- CDW's Operating Margin has improved in the last couple of years.
- 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.
- CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. CDW Health Analysis
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.
- The number of shares outstanding for CDW has been reduced compared to 1 year ago.
- CDW has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CDW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.41 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 2.41, CDW is in line with its industry, outperforming 41.94% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (5.17) than 61.29% of its industry peers.
- A Debt/Equity ratio of 1.77 is on the high side and indicates that CDW has dependencies on debt financing.
- CDW has a worse Debt to Equity ratio (1.77) than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.57
WACC8.99%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that CDW should not have too much problems paying its short term obligations.
- CDW has a Current ratio of 1.18. This is amonst the worse of the industry: CDW underperforms 84.68% of its industry peers.
- A Quick Ratio of 1.10 indicates that CDW should not have too much problems paying its short term obligations.
- The Quick ratio of CDW (1.10) is worse than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. CDW Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 5.25% over the past year.
- Measured over the past years, CDW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
- Looking at the last year, CDW shows a small growth in Revenue. The Revenue has grown by 6.79% in the last year.
- 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
- Based on estimates for the next years, CDW will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
- Based on estimates for the next years, CDW will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. CDW Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.85, the valuation of CDW can be described as reasonable.
- Based on the Price/Earnings ratio, CDW is valued cheaper than 91.13% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 24.89, CDW is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.19, the valuation of CDW can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 86.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, CDW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 11.19 |
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 83.06% of the companies listed in the same industry.
- 86.29% 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 | 14.09 | ||
| EV/EBITDA | 10.38 |
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)2.02
PEG (5Y)1.35
EPS Next 2Y6.71%
EPS Next 3Y7.36%
5. CDW Dividend Analysis
5.1 Amount
- CDW has a Yearly Dividend Yield of 2.08%.
- Compared to an average industry Dividend Yield of 0.46, CDW pays a better dividend. On top of this CDW pays more dividend than 95.16% of the companies listed in the same industry.
- CDW's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
- On average, the dividend of CDW grows each year by 10.23%, 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)10.23%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- CDW pays out 30.81% 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.
DP30.81%
EPS Next 2Y6.71%
EPS Next 3Y7.36%
CDW Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:CDW (3/30/2026, 11:57:56 AM)
118.83
+0.66 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)05-05 2026-05-05/bmo
Inst Owners96.98%
Inst Owner Change2.8%
Ins Owners0.2%
Ins Owner Change5.53%
Market Cap15.33B
Revenue(TTM)22.42B
Net Income(TTM)1.07B
Analysts76.47
Price Target170.96 (43.87%)
Short Float %3.93%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend2.51
Dividend Growth(5Y)10.23%
DP30.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-25 2026-02-25 (0.63)
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)-1.76%
PT rev (3m)-8.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.95%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.53%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 11.19 | ||
| P/S | 0.68 | ||
| P/FCF | 14.09 | ||
| P/OCF | 12.72 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)10.03
EY8.44%
EPS(NY)10.62
Fwd EY8.94%
FCF(TTM)8.44
FCFY7.1%
OCF(TTM)9.34
OCFY7.86%
SpS173.84
BVpS20.2
TBVpS-25.14
PEG (NY)2.02
PEG (5Y)1.35
Graham Number67.52
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.41 |
F-Score5
WACC8.99%
ROIC/WACC1.57
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 11.85 and the Price/Book (PB) ratio is 5.88.
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%.