146.25 USD
+1.71 (+1.18%)
146.25 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CDW. CDW was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. CDW has an excellent profitability rating, 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
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.
In the past 5 years CDW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.92%, CDW belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
With an excellent Return On Equity value of 41.39%, CDW belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
The Return On Invested Capital of CDW (12.86%) is better than 88.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.17%.
| 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
The Profit Margin of CDW (4.76%) is better than 65.60% of its industry peers.
In the last couple of years the Profit Margin of CDW has grown nicely.
The Operating Margin of CDW (7.39%) is better than 71.20% of its industry peers.
CDW's Operating Margin has improved in the last couple of years.
CDW has a worse Gross Margin (21.60%) than 64.00% 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
CDW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CDW has been reduced compared to 1 year ago.
The number of shares outstanding for CDW has been reduced compared to 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 2.75 indicates that CDW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CDW has a Altman-Z score of 2.75. This is in the lower half of the industry: CDW underperforms 61.60% of its industry peers.
The Debt to FCF ratio of CDW is 5.58, which is a neutral value as it means it would take CDW, 5.58 years of fcf income to pay off all of its debts.
CDW has a Debt to FCF ratio (5.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CDW has dependencies on debt financing.
CDW has a worse Debt to Equity ratio (2.21) than 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.54
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CDW should not have too much problems paying its short term obligations.
CDW has a worse Current ratio (1.39) than 80.80% of its industry peers.
A Quick Ratio of 1.30 indicates that CDW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CDW is doing worse than 64.00% of the companies in the same industry.
| 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%.
CDW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.30% yearly.
The Revenue has been growing slightly by 6.09% in the past 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
CDW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.32% yearly.
CDW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
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 14.71 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 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, CDW is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of CDW can be described as correct.
CDW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CDW is cheaper than 89.60% of the companies in the same industry.
CDW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than the industry average as 78.40% of the companies are valued more expensively.
CDW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CDW is cheaper than 83.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.87 | ||
| EV/EBITDA | 12.47 |
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)3.29
PEG (5Y)1.58
EPS Next 2Y5.27%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
CDW has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 2.36, CDW pays a better dividend. On top of this CDW pays more dividend than 93.60% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, CDW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y5.27%
EPS Next 3Y6.32%
146.25
+1.71 (+1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-0.17%
Ins Owners0.19%
Ins Owner Change0.51%
Market Cap19.04B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts77.65
Price Target187.32 (28.08%)
Short Float %3.43%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend2.49
Dividend Growth(5Y)14.59%
DP31.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-11.21%
PT rev (3m)-11.21%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.86 | ||
| P/FCF | 18.87 | ||
| P/OCF | 17.05 | ||
| P/B | 7.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)9.94
EY6.8%
EPS(NY)10.56
Fwd EY7.22%
FCF(TTM)7.75
FCFY5.3%
OCF(TTM)8.58
OCFY5.86%
SpS169.74
BVpS19.51
TBVpS-25.56
PEG (NY)3.29
PEG (5Y)1.58
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 | 2.75 |
F-Score6
WACC8.36%
ROIC/WACC1.54
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 Y4.47%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y0.28%
Revenue growth 5Y3.09%
Sales Q2Q%4%
Revenue Next Year6.61%
Revenue Next 2Y4.73%
Revenue Next 3Y4.59%
Revenue Next 5YN/A
EBIT growth 1Y-2.63%
EBIT growth 3Y5.18%
EBIT growth 5Y7.81%
EBIT Next Year9.83%
EBIT Next 3Y6.56%
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 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 14.71 and the Price/Book (PB) ratio is 7.5.
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 31.39%.