143.23 USD
+1.31 (+0.92%)
144 USD
+0.77 (+0.54%)
Taking everything into account, CDW scores 6 out of 10 in our fundamental rating. CDW was compared to 123 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 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.
In the past 5 years CDW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.92%, CDW belongs to the best of the industry, outperforming 83.74% 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 97.56% of the companies in the same industry.
CDW's Return On Invested Capital of 12.86% is amongst the best of the industry. CDW outperforms 88.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CDW is significantly above the industry average of 9.11%.
| 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
With a decent Profit Margin value of 4.76%, CDW is doing good in the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Profit Margin of CDW has grown nicely.
CDW has a Operating Margin of 7.39%. This is in the better half of the industry: CDW outperforms 71.54% of its industry peers.
CDW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.60%, CDW is doing worse than 64.23% of the companies in the same industry.
CDW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| 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.
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.
CDW has a better debt/assets ratio than last year.
2.2 Solvency
CDW has an Altman-Z score of 2.75. 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.
Looking at the Altman-Z score, with a value of 2.75, CDW is doing worse than 60.16% 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.
With a decent Debt to FCF ratio value of 5.58, CDW is doing good in the industry, outperforming 60.16% of the companies in the same industry.
CDW has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external 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 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.49
WACC8.65%
2.3 Liquidity
CDW has a Current Ratio of 1.39. 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 Current ratio value of 1.39, CDW is not doing good in the industry: 80.49% 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.
CDW's Quick ratio of 1.30 is on the low side compared to the rest of the industry. CDW is outperformed by 63.41% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 9.30% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.09% in the past year.
The Revenue has been growing slightly by 3.09% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.32% 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 4.59% 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 14.41 indicates a correct valuation of CDW.
Based on the Price/Earnings ratio, CDW is valued cheaply inside the industry as 86.99% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.98. CDW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.56 indicates a correct valuation of CDW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CDW indicates a rather cheap valuation: CDW is cheaper than 89.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CDW to the average of the S&P500 Index (35.79), we can say CDW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CDW is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CDW is valued cheaper than 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 12.44 |
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 3Y6.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, CDW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, CDW pays a better dividend. On top of this CDW pays more dividend than 93.50% of the companies listed in the same industry.
CDW's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 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.
The dividend of CDW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.39%
EPS Next 2Y5.27%
EPS Next 3Y6.32%
143.23
+1.31 (+0.92%)
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-0.17%
Ins Owners0.19%
Ins Owner Change0.55%
Market Cap18.77B
Revenue(TTM)22.10B
Net Income(TTM)1.05B
Analysts76.47
Price Target187.48 (30.89%)
Short Float %3.24%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 | 14.41 | ||
| Fwd PE | 13.56 | ||
| P/S | 0.85 | ||
| P/FCF | 18.61 | ||
| P/OCF | 16.81 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.44 |
EPS(TTM)9.94
EY6.94%
EPS(NY)10.56
Fwd EY7.37%
FCF(TTM)7.7
FCFY5.37%
OCF(TTM)8.52
OCFY5.95%
SpS168.62
BVpS19.38
TBVpS-25.39
PEG (NY)3.22
PEG (5Y)1.55
Graham Number65.83
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
WACC8.65%
ROIC/WACC1.49
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 14.41 and the Price/Book (PB) ratio is 7.39.
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%.