58.87 USD
-0.79 (-1.32%)
58.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CNXN. CNXN was compared to 124 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
In the past year CNXN was profitable.
In the past year CNXN had a positive cash flow from operations.
Each year in the past 5 years CNXN has been profitable.
In the past 5 years CNXN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.41%, CNXN is doing good in the industry, outperforming 78.23% of the companies in the same industry.
CNXN has a better Return On Equity (9.28%) than 71.77% 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 75.81% of the companies in the same industry.
CNXN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is in line with the industry average of 9.30%.
| 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
CNXN has a Profit Margin of 2.91%. This is in the better half of the industry: CNXN outperforms 60.48% of its industry peers.
CNXN's Profit Margin has been stable in the last couple of years.
CNXN has a Operating Margin (3.52%) which is in line with its industry peers.
CNXN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.53%, CNXN is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CNXN has grown nicely.
| 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
CNXN 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 CNXN has been reduced compared to 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
CNXN has an Altman-Z score of 6.38. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.38, CNXN belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
There is no outstanding debt for CNXN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.38 |
ROIC/WACC0.9
WACC9.07%
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.
The Current ratio of CNXN (3.06) is better than 61.29% 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.
CNXN has a Quick ratio of 2.71. This is in the better half of the industry: CNXN outperforms 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
CNXN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.28%.
CNXN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.20% yearly.
Looking at the last year, CNXN shows a small growth in Revenue. The Revenue has grown by 3.19% in the last 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)-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
Based on estimates for the next years, CNXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.91% on average per year.
CNXN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
EPS Next Y5.41%
EPS Next 2Y8.9%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 18.23 indicates a rather expensive valuation of CNXN.
CNXN's Price/Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 81.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. CNXN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.09, CNXN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNXN indicates a rather cheap valuation: CNXN is cheaper than 84.68% of the companies listed in the same industry.
CNXN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 15.09 |
4.2 Price Multiples
93.55% of the companies in the same industry are more expensive than CNXN, based on the Enterprise Value to EBITDA ratio.
CNXN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNXN is cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.68 | ||
| EV/EBITDA | 7.91 |
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.
CNXN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.37
PEG (5Y)15.23
EPS Next 2Y8.9%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
CNXN has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 0.47, CNXN pays a better dividend. On top of this CNXN pays more dividend than 86.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, CNXN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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 16.89% of its income as dividend. This is a sustainable payout ratio.
CNXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.89%
EPS Next 2Y8.9%
EPS Next 3Y10.91%
58.87
-0.79 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners42.2%
Inst Owner Change-1.69%
Ins Owners28.39%
Ins Owner Change0.09%
Market Cap1.49B
Revenue(TTM)2.88B
Net Income(TTM)83.73M
Analysts43.33
Price Target77.52 (31.68%)
Short Float %2.47%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)-5.49%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 15.09 | ||
| P/S | 0.52 | ||
| P/FCF | 26.68 | ||
| P/OCF | 23.49 | ||
| P/B | 1.65 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)3.23
EY5.49%
EPS(NY)3.9
Fwd EY6.63%
FCF(TTM)2.21
FCFY3.75%
OCF(TTM)2.51
OCFY4.26%
SpS114.01
BVpS35.75
TBVpS32.79
PEG (NY)3.37
PEG (5Y)15.23
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 | 6.38 |
F-Score5
WACC9.07%
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)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
EPS Next Y5.41%
EPS Next 2Y8.9%
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 Year5.83%
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 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 18.23 and the Price/Book (PB) ratio is 1.65.
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%.