58.04 USD
-0.27 (-0.46%)
58.04 USD
0 (0%)
Taking everything into account, CNXN scores 6 out of 10 in our fundamental rating. CNXN was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While CNXN has a great health rating, its profitability is only average at the moment. CNXN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNXN was profitable.
In the past year CNXN had a positive cash flow from operations.
In the past 5 years CNXN has always been profitable.
Each year in the past 5 years CNXN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.41%, CNXN is doing good in the industry, outperforming 77.24% of the companies in the same industry.
CNXN's Return On Equity of 9.28% is fine compared to the rest of the industry. CNXN outperforms 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.12%, CNXN is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNXN is in line with the industry average of 9.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROIC | 8.12% |
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
1.3 Margins
The Profit Margin of CNXN (2.91%) is comparable to the rest of the industry.
CNXN's Profit Margin has been stable in the last couple of years.
CNXN has a Operating Margin of 3.52%. This is comparable to the rest of the industry: CNXN outperforms 57.72% of its industry peers.
In the last couple of years the Operating Margin of CNXN has declined.
CNXN has a worse Gross Margin (18.53%) than 69.92% of its industry peers.
CNXN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% |
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNXN is still creating some value.
CNXN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNXN remains at a similar level compared to 5 years ago.
CNXN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.33 indicates that CNXN is not in any danger for bankruptcy at the moment.
CNXN has a Altman-Z score of 6.33. This is amongst the best in the industry. CNXN outperforms 83.74% of its industry peers.
CNXN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.33 |
ROIC/WACC0.88
WACC9.21%
2.3 Liquidity
CNXN has a Current Ratio of 3.06. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
CNXN's Current ratio of 3.06 is fine compared to the rest of the industry. CNXN outperforms 61.79% of its industry peers.
CNXN has a Quick Ratio of 2.71. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.71, CNXN is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
The earnings per share for CNXN have decreased by -5.28% in the last year.
The Earnings Per Share has been growing slightly by 1.20% on average over the past years.
The Revenue has been growing slightly by 3.19% in the past year.
The Revenue has been decreasing by -0.13% on average over the past years.
EPS 1Y (TTM)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y6.03%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
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 accelerating.
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
With a Price/Earnings ratio of 17.97, CNXN is valued on the expensive side.
82.11% of the companies in the same industry are more expensive than CNXN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. CNXN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.31 indicates a correct valuation of CNXN.
Based on the Price/Forward Earnings ratio, CNXN is valued cheaper than 86.99% of the companies in the same industry.
CNXN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 14.31 |
4.2 Price Multiples
93.50% of the companies in the same industry are more expensive than CNXN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.31 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNXN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.98
PEG (5Y)15.01
EPS Next 2Y11.01%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
CNXN has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, CNXN pays a better dividend. On top of this CNXN pays more dividend than 85.37% of the companies listed in the same industry.
With a Dividend Yield of 1.07, CNXN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of CNXN has a limited annual growth rate of 4.51%.
CNXN has been paying a dividend for over 5 years, so it has already some track record.
The dividend of CNXN decreased recently.
Dividend Growth(5Y)4.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.89% of the earnings are spent on dividend by CNXN. This is a low number and sustainable payout ratio.
The dividend of CNXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.89%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
58.04
-0.27 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners42.86%
Inst Owner Change-1.69%
Ins Owners28.2%
Ins Owner Change-0.17%
Market Cap1.47B
Revenue(TTM)2.88B
Net Income(TTM)83.73M
Analysts43.33
Price Target77.52 (33.56%)
Short Float %2.47%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP16.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-5.38%
Max EPS beat(2)5.08%
EPS beat(4)2
Avg EPS beat(4)1.29%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)4
Avg EPS beat(8)-0.12%
EPS beat(12)6
Avg EPS beat(12)0%
EPS beat(16)10
Avg EPS beat(16)5.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-2.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.83%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 14.31 | ||
| P/S | 0.51 | ||
| P/FCF | 26.31 | ||
| P/OCF | 23.16 | ||
| P/B | 1.62 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)3.23
EY5.57%
EPS(NY)4.05
Fwd EY6.99%
FCF(TTM)2.21
FCFY3.8%
OCF(TTM)2.51
OCFY4.32%
SpS114.01
BVpS35.75
TBVpS32.79
PEG (NY)2.98
PEG (5Y)15.01
Graham Number50.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROCE | 10.99% | ||
| ROIC | 8.12% | ||
| ROICexc | 14.32% | ||
| ROICexgc | 16.72% | ||
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% | ||
| FCFM | 1.94% |
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
ROICexc(3y)14.03%
ROICexc(5y)12.66%
ROICexgc(3y)16.27%
ROICexgc(5y)14.67%
ROCE(3y)12.69%
ROCE(5y)12.51%
ROICexgc growth 3Y8.7%
ROICexgc growth 5Y-0.74%
ROICexc growth 3Y7.7%
ROICexc growth 5Y-0.84%
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
F-Score5
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.91% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 101253 | ||
| Cash Conversion | 55.85% | ||
| Profit Quality | 66.53% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 | ||
| Altman-Z | 6.33 |
F-Score5
WACC9.21%
ROIC/WACC0.88
Cap/Depr(3y)69.99%
Cap/Depr(5y)75.1%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.34%
Profit Quality(3y)148.69%
Profit Quality(5y)111.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
EPS Next Y6.03%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
EBIT growth 1Y-1.49%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year8.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.49%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-69.12%
OCF growth 3Y44.4%
OCF growth 5Y36.57%
PC CONNECTION INC / CNXN FAQ
Can you provide the ChartMill fundamental rating for PC CONNECTION INC?
ChartMill assigns a fundamental rating of 6 / 10 to CNXN.
What is the valuation status for CNXN stock?
ChartMill assigns a valuation rating of 5 / 10 to PC CONNECTION INC (CNXN). This can be considered as Fairly Valued.
Can you provide the profitability details for PC CONNECTION INC?
PC CONNECTION INC (CNXN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of PC CONNECTION INC (CNXN) stock?
The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 17.97 and the Price/Book (PB) ratio is 1.62.
Can you provide the dividend sustainability for CNXN stock?
The dividend rating of PC CONNECTION INC (CNXN) is 5 / 10 and the dividend payout ratio is 16.89%.