PC CONNECTION INC (CNXN) Fundamental Analysis & Valuation

NASDAQ:CNXN • US69318J1007

Current stock price

62.42 USD
-0.27 (-0.43%)
Last:

This CNXN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CNXN Profitability Analysis

1.1 Basic Checks

  • In the past year CNXN was profitable.
  • CNXN had a positive operating cash flow in the past year.
  • Each year in the past 5 years CNXN has been profitable.
  • Each year in the past 5 years CNXN had a positive operating cash flow.
CNXN Yearly Net Income VS EBIT VS OCF VS FCFCNXN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • The Return On Assets of CNXN (6.20%) is better than 79.03% of its industry peers.
  • CNXN's Return On Equity of 9.20% is fine compared to the rest of the industry. CNXN outperforms 67.74% of its industry peers.
  • CNXN has a better Return On Invested Capital (8.36%) than 79.84% of its industry peers.
  • CNXN had an Average Return On Invested Capital over the past 3 years of 8.40%. This is in line with the industry average of 8.11%.
Industry RankSector Rank
ROA 6.2%
ROE 9.2%
ROIC 8.36%
ROA(3y)6.64%
ROA(5y)6.89%
ROE(3y)9.55%
ROE(5y)10.11%
ROIC(3y)8.4%
ROIC(5y)9.31%
CNXN Yearly ROA, ROE, ROICCNXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • With a decent Profit Margin value of 2.91%, CNXN is doing good in the industry, outperforming 62.10% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CNXN has grown nicely.
  • Looking at the Operating Margin, with a value of 3.67%, CNXN is in line with its industry, outperforming 58.06% of the companies in the same industry.
  • CNXN's Operating Margin has improved in the last couple of years.
  • CNXN's Gross Margin of 18.77% is on the low side compared to the rest of the industry. CNXN is outperformed by 68.55% of its industry peers.
  • In the last couple of years the Gross Margin of CNXN has grown nicely.
Industry RankSector Rank
OM 3.67%
PM (TTM) 2.91%
GM 18.77%
OM growth 3Y-1.7%
OM growth 5Y5.4%
PM growth 3Y0.7%
PM growth 5Y6.23%
GM growth 3Y3.69%
GM growth 5Y3.03%
CNXN Yearly Profit, Operating, Gross MarginsCNXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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9

2. CNXN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXN is destroying value.
  • CNXN has less shares outstanding than it did 1 year ago.
  • CNXN has less shares outstanding than it did 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.
CNXN Yearly Shares OutstandingCNXN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
CNXN Yearly Total Debt VS Total AssetsCNXN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • CNXN has an Altman-Z score of 6.18. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
  • CNXN's Altman-Z score of 6.18 is fine compared to the rest of the industry. CNXN outperforms 74.19% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.18
ROIC/WACC0.87
WACC9.57%
CNXN Yearly LT Debt VS Equity VS FCFCNXN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 2.90 indicates that CNXN has no problem at all paying its short term obligations.
  • CNXN has a Current ratio of 2.90. This is in the better half of the industry: CNXN outperforms 60.48% of its industry peers.
  • A Quick Ratio of 2.56 indicates that CNXN has no problem at all paying its short term obligations.
  • CNXN has a better Quick ratio (2.56) than 63.71% of its industry peers.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.56
CNXN Yearly Current Assets VS Current LiabilitesCNXN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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5

3. CNXN Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.13% over the past year.
  • Measured over the past years, CNXN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.44% on average per year.
  • The Revenue has been growing slightly by 2.52% in the past year.
  • CNXN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.09% yearly.
EPS 1Y (TTM)2.13%
EPS 3Y-0.2%
EPS 5Y9.44%
EPS Q2Q%16.67%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y-2.77%
Revenue growth 5Y2.09%
Sales Q2Q%-0.84%

3.2 Future

  • CNXN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.85% yearly.
  • CNXN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.69% yearly.
EPS Next Y15.21%
EPS Next 2Y12.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y3.69%
Revenue Next 3YN/A
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.
  • 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.
CNXN Yearly Revenue VS EstimatesCNXN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
CNXN Yearly EPS VS EstimatesCNXN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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6

4. CNXN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.58, which indicates a rather expensive current valuation of CNXN.
  • 83.87% of the companies in the same industry are more expensive than CNXN, based on the Price/Earnings ratio.
  • CNXN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 16.13, which indicates a correct valuation of CNXN.
  • Based on the Price/Forward Earnings ratio, CNXN is valued a bit cheaper than 79.03% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CNXN to the average of the S&P500 Index (37.39), we can say CNXN is valued rather cheaply.
Industry RankSector Rank
PE 18.58
Fwd PE 16.13
CNXN Price Earnings VS Forward Price EarningsCNXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNXN indicates a rather cheap valuation: CNXN is cheaper than 91.13% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than the industry average as 72.58% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 27.12
EV/EBITDA 8.15
CNXN Per share dataCNXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • CNXN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CNXN has a very decent profitability rating, which may justify a higher PE ratio.
  • CNXN's earnings are expected to grow with 12.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.97
EPS Next 2Y12.85%
EPS Next 3YN/A

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5

5. CNXN Dividend Analysis

5.1 Amount

  • CNXN has a Yearly Dividend Yield of 1.04%.
  • Compared to an average industry Dividend Yield of 0.45, CNXN pays a better dividend. On top of this CNXN pays more dividend than 87.90% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CNXN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

  • On average, the dividend of CNXN grows each year by 13.09%, which is quite nice.
  • CNXN has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of CNXN decreased in the last 3 years.
Dividend Growth(5Y)13.09%
Div Incr Years2
Div Non Decr Years2
CNXN Yearly Dividends per shareCNXN Yearly Dividends per shareYearly Dividends per share 2018 2019 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • CNXN pays out 18.27% of its income as dividend. This is a sustainable payout ratio.
  • CNXN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.27%
EPS Next 2Y12.85%
EPS Next 3YN/A
CNXN Yearly Income VS Free CF VS DividendCNXN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CNXN Dividend Payout.CNXN Dividend Payout, showing the Payout Ratio.CNXN Dividend Payout.PayoutRetained Earnings

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CNXN Fundamentals: All Metrics, Ratios and Statistics

PC CONNECTION INC

NASDAQ:CNXN (4/10/2026, 8:14:35 PM)

62.42

-0.27 (-0.43%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)04-30
Inst Owners41.99%
Inst Owner Change0.18%
Ins Owners28.49%
Ins Owner Change0.29%
Market Cap1.57B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (24.19%)
Short Float %3.16%
Short Ratio3.92
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.59
Dividend Growth(5Y)13.09%
DP18.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.82%
Min EPS beat(2)-5.38%
Max EPS beat(2)3.74%
EPS beat(4)3
Avg EPS beat(4)5.98%
Min EPS beat(4)-5.38%
Max EPS beat(4)20.48%
EPS beat(8)4
Avg EPS beat(8)0.32%
EPS beat(12)7
Avg EPS beat(12)0.75%
EPS beat(16)10
Avg EPS beat(16)4.77%
Revenue beat(2)0
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-6.3%
Revenue beat(4)1
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)6.39%
Revenue beat(8)2
Avg Revenue beat(8)-2.79%
Revenue beat(12)3
Avg Revenue beat(12)-3.06%
Revenue beat(16)5
Avg Revenue beat(16)-1.89%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
Industry RankSector Rank
PE 18.58
Fwd PE 16.13
P/S 0.55
P/FCF 27.12
P/OCF 24.06
P/B 1.73
P/tB 1.88
EV/EBITDA 8.15
EPS(TTM)3.36
EY5.38%
EPS(NY)3.87
Fwd EY6.2%
FCF(TTM)2.3
FCFY3.69%
OCF(TTM)2.59
OCFY4.16%
SpS113.91
BVpS36.09
TBVpS33.13
PEG (NY)1.22
PEG (5Y)1.97
Graham Number52.23
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 9.2%
ROCE 11.32%
ROIC 8.36%
ROICexc 14.85%
ROICexgc 17.31%
OM 3.67%
PM (TTM) 2.91%
GM 18.77%
FCFM 2.02%
ROA(3y)6.64%
ROA(5y)6.89%
ROE(3y)9.55%
ROE(5y)10.11%
ROIC(3y)8.4%
ROIC(5y)9.31%
ROICexc(3y)14.52%
ROICexc(5y)13.76%
ROICexgc(3y)16.99%
ROICexgc(5y)15.96%
ROCE(3y)11.37%
ROCE(5y)12.6%
ROICexgc growth 3Y4.56%
ROICexgc growth 5Y9.78%
ROICexc growth 3Y3.56%
ROICexc growth 5Y9.72%
OM growth 3Y-1.7%
OM growth 5Y5.4%
PM growth 3Y0.7%
PM growth 5Y6.23%
GM growth 3Y3.69%
GM growth 5Y3.03%
F-Score5
Asset Turnover2.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 63.14%
Cap/Sales 0.26%
Interest Coverage 250
Cash Conversion 55.93%
Profit Quality 69.34%
Current Ratio 2.9
Quick Ratio 2.56
Altman-Z 6.18
F-Score5
WACC9.57%
ROIC/WACC0.87
Cap/Depr(3y)65.77%
Cap/Depr(5y)71.5%
Cap/Sales(3y)0.29%
Cap/Sales(5y)0.3%
Profit Quality(3y)162.16%
Profit Quality(5y)116.66%
High Growth Momentum
Growth
EPS 1Y (TTM)2.13%
EPS 3Y-0.2%
EPS 5Y9.44%
EPS Q2Q%16.67%
EPS Next Y15.21%
EPS Next 2Y12.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.52%
Revenue growth 3Y-2.77%
Revenue growth 5Y2.09%
Sales Q2Q%-0.84%
Revenue Next Year3%
Revenue Next 2Y3.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.02%
EBIT growth 3Y-4.42%
EBIT growth 5Y7.6%
EBIT Next Year23.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.09%
FCF growth 3Y31.02%
FCF growth 5Y18.28%
OCF growth 1Y-62.36%
OCF growth 3Y23.32%
OCF growth 5Y12.63%

PC CONNECTION INC / CNXN Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PC CONNECTION INC?

ChartMill assigns a fundamental rating of 7 / 10 to CNXN.


What is the valuation status of PC CONNECTION INC (CNXN) stock?

ChartMill assigns a valuation rating of 6 / 10 to PC CONNECTION INC (CNXN). This can be considered as Fairly Valued.


What is the profitability of CNXN stock?

PC CONNECTION INC (CNXN) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for CNXN stock?

The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 18.58 and the Price/Book (PB) ratio is 1.73.


How sustainable is the dividend of PC CONNECTION INC (CNXN) stock?

The dividend rating of PC CONNECTION INC (CNXN) is 5 / 10 and the dividend payout ratio is 18.27%.