PC CONNECTION INC (CNXN) Stock Fundamental Analysis
USA - NASDAQ:CNXN - US69318J1007 - Common Stock
62.45 USD
+0.38 (+0.61%)
62.45 USD
0 (0%)
CNXN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. CNXN has an excellent financial health rating, but there are some minor concerns on its profitability. CNXN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CNXN had positive earnings in the past year.
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
CNXN has a better Return On Assets (6.78%) than 82.93% of its industry peers.
Looking at the Return On Equity, with a value of 9.73%, CNXN is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
The Return On Invested Capital of CNXN (8.28%) is better than 77.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNXN is in line with the industry average of 9.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.73% | ||
| ROIC | 8.28% |
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
CNXN has a Profit Margin of 2.97%. This is in the better half of the industry: CNXN outperforms 60.16% of its industry peers.
CNXN's Profit Margin has been stable in the last couple of years.
CNXN has a Operating Margin of 3.49%. This is comparable to the rest of the industry: CNXN outperforms 56.91% of its industry peers.
In the last couple of years the Operating Margin of CNXN has declined.
CNXN's Gross Margin of 18.32% is on the low side compared to the rest of the industry. CNXN is outperformed by 70.73% of its industry peers.
CNXN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.49% | ||
| PM (TTM) | 2.97% | ||
| GM | 18.32% |
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
CNXN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CNXN has less shares outstanding
Compared to 5 years ago, CNXN has about the same amount of shares outstanding.
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 6.70 indicates that CNXN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.70, CNXN is doing good in the industry, outperforming 78.86% of the companies in the same industry.
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 | 6.7 |
ROIC/WACC0.9
WACC9.16%
2.3 Liquidity
A Current Ratio of 3.09 indicates that CNXN has no problem at all paying its short term obligations.
CNXN's Current ratio of 3.09 is fine compared to the rest of the industry. CNXN outperforms 64.23% of its industry peers.
CNXN has a Quick Ratio of 2.73. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
CNXN has a Quick ratio of 2.73. This is in the better half of the industry: CNXN outperforms 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.73 |
3. Growth
3.1 Past
CNXN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.38%.
Measured over the past 5 years, CNXN shows a small growth in Earnings Per Share. The EPS has been growing by 1.20% on average per year.
The Revenue has been growing slightly by 4.94% in the past year.
Measured over the past years, CNXN shows a decrease in Revenue. The Revenue has been decreasing by -0.13% on average per year.
EPS 1Y (TTM)-2.38%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-2.02%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%3.15%
3.2 Future
Based on estimates for the next years, CNXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.01% on average per year.
Based on estimates for the next years, CNXN will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y6.19%
EPS Next 2Y11.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 19.04 indicates a rather expensive valuation of CNXN.
Compared to the rest of the industry, the Price/Earnings ratio of CNXN indicates a rather cheap valuation: CNXN is cheaper than 83.74% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNXN to the average of the S&P500 Index (27.00), we can say CNXN is valued slightly cheaper.
CNXN is valuated correctly with a Price/Forward Earnings ratio of 15.40.
CNXN's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 86.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, CNXN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
CNXN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXN is cheaper than 87.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.56 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNXN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)15.91
EPS Next 2Y11.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, CNXN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.94, CNXN pays a better dividend. On top of this CNXN pays more dividend than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, CNXN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
CNXN has decreased its dividend recently.
Dividend Growth(5Y)4.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNXN pays out 15.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of CNXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.08%
EPS Next 2Y11.01%
EPS Next 3YN/A
62.45
+0.38 (+0.61%)
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-0.37%
Ins Owners28.2%
Ins Owner Change-0.23%
Market Cap1.59B
Revenue(TTM)2.89B
Net Income(TTM)86.05M
Analysts43.33
Price Target77.52 (24.13%)
Short Float %2.49%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP15.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.78%
Min EPS beat(2)5.08%
Max EPS beat(2)20.48%
EPS beat(4)2
Avg EPS beat(4)2.51%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)7
Avg EPS beat(12)0.77%
EPS beat(16)11
Avg EPS beat(16)6.47%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)6.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-2.01%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)7
Avg Revenue beat(16)-0.66%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 15.4 | ||
| P/S | 0.55 | ||
| P/FCF | 35.56 | ||
| P/OCF | 30.46 | ||
| P/B | 1.79 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 9.52 |
EPS(TTM)3.28
EY5.25%
EPS(NY)4.05
Fwd EY6.49%
FCF(TTM)1.76
FCFY2.81%
OCF(TTM)2.05
OCFY3.28%
SpS114
BVpS34.85
TBVpS31.89
PEG (NY)3.08
PEG (5Y)15.91
Graham Number50.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.73% | ||
| ROCE | 11.21% | ||
| ROIC | 8.28% | ||
| ROICexc | 13.45% | ||
| ROICexgc | 15.56% | ||
| OM | 3.49% | ||
| PM (TTM) | 2.97% | ||
| GM | 18.32% | ||
| FCFM | 1.54% |
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-Score6
Asset Turnover2.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 60.27% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 25257 | ||
| Cash Conversion | 45.9% | ||
| Profit Quality | 51.81% | ||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.73 | ||
| Altman-Z | 6.7 |
F-Score6
WACC9.16%
ROIC/WACC0.9
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)-2.38%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-2.02%
EPS Next Y6.19%
EPS Next 2Y11.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.94%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%3.15%
Revenue Next Year5.51%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.54%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year8.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-73.67%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-70.87%
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 6 / 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 19.04 and the Price/Book (PB) ratio is 1.79.
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 15.08%.