PC CONNECTION INC (CNXN) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CNXN • US69318J1007

67.92 USD
+2.27 (+3.46%)
At close: Feb 6, 2026
67.92 USD
0 (0%)
After Hours: 2/6/2026, 8:26:08 PM
Fundamental Rating

5

Overall CNXN gets a fundamental rating of 5 out of 10. We evaluated CNXN 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

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.
  • CNXN had positive earnings in 4 of the past 5 years.
  • CNXN had a positive operating cash flow in 4 of the past 5 years.
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 50M 100M 150M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.41%, CNXN is in the better half of the industry, outperforming 78.86% 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 71.54% 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 76.42% 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 8.90%.
Industry RankSector 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%
CNXN Yearly ROA, ROE, ROICCNXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • The Profit Margin of CNXN (2.91%) is better than 63.41% of its industry peers.
  • In the last couple of years the Profit Margin of CNXN has remained more or less at the same level.
  • CNXN has a Operating Margin (3.52%) which is comparable to the rest of the industry.
  • CNXN's Operating Margin has declined in the last couple of years.
  • CNXN has a Gross Margin of 18.53%. This is in the lower half of the industry: CNXN underperforms 67.48% of its industry peers.
  • CNXN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
CNXN Yearly Profit, Operating, Gross MarginsCNXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXN is destroying value.
  • 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 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 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 6.61 indicates that CNXN is not in any danger for bankruptcy at the moment.
  • CNXN has a better Altman-Z score (6.61) than 82.93% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.61
ROIC/WACC0.51
WACC15.82%
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 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 3.06 indicates that CNXN has no problem at all paying its short term obligations.
  • CNXN's Current ratio of 3.06 is fine compared to the rest of the industry. CNXN outperforms 62.60% 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's Quick ratio of 2.71 is fine compared to the rest of the industry. CNXN outperforms 67.48% of its industry peers.
Industry RankSector Rank
Current Ratio 3.06
Quick Ratio 2.71
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 200M 400M 600M 800M 1B

3

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.13% over the past year.
  • The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
EPS 1Y (TTM)2.13%
EPS 3Y-0.2%
EPS 5Y9.44%
EPS Q2Q%16.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.84%

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 15.57% on average per year.
  • Based on estimates for the next years, CNXN will show a small growth in Revenue. The Revenue will grow by 5.05% on average per year.
EPS Next Y16.12%
EPS Next 2Y15.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.56%
Revenue Next 2Y5.05%
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.
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

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.21, which indicates a rather expensive current valuation of CNXN.
  • CNXN's Price/Earnings ratio is a bit cheaper when compared to the industry. CNXN is cheaper than 79.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, CNXN is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 17.41, the valuation of CNXN can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, CNXN is valued a bit cheaper than the industry average as 79.67% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. CNXN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.21
Fwd PE 17.41
CNXN Price Earnings VS Forward Price EarningsCNXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CNXN is valued cheaply inside the industry as 91.06% of the companies are valued more expensively.
  • CNXN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNXN is cheaper than 69.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.79
EV/EBITDA 9.24
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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CNXN's earnings are expected to grow with 15.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)2.14
EPS Next 2Y15.57%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 1.00%, CNXN is not a good candidate for dividend investing.
  • CNXN's Dividend Yield is rather good when compared to the industry average which is at 0.46. CNXN pays more dividend than 86.99% of the companies in the same industry.
  • With a Dividend Yield of 1.00, CNXN pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 1%

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
CNXN Yearly Dividends per shareCNXN Yearly Dividends per shareYearly Dividends per share 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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 2Y15.57%
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 50M 100M 150M
CNXN Dividend Payout.CNXN Dividend Payout, showing the Payout Ratio.CNXN Dividend Payout.PayoutRetained Earnings

PC CONNECTION INC

NASDAQ:CNXN (2/6/2026, 8:26:08 PM)

After market: 67.92 0 (0%)

67.92

+2.27 (+3.46%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners42.19%
Inst Owner Change-0.38%
Ins Owners28.36%
Ins Owner Change0.08%
Market Cap1.71B
Revenue(TTM)N/A
Net Income(TTM)83.73M
Analysts43.33
Price Target77.52 (14.13%)
Short Float %2.94%
Short Ratio4.31
Dividend
Industry RankSector Rank
Dividend Yield 1%
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP16.89%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.02%
Valuation
Industry RankSector Rank
PE 20.21
Fwd PE 17.41
P/S 0.6
P/FCF 30.79
P/OCF 27.11
P/B 1.9
P/tB 2.07
EV/EBITDA 9.24
EPS(TTM)3.36
EY4.95%
EPS(NY)3.9
Fwd EY5.74%
FCF(TTM)2.21
FCFY3.25%
OCF(TTM)2.51
OCFY3.69%
SpS114.01
BVpS35.75
TBVpS32.79
PEG (NY)1.25
PEG (5Y)2.14
Graham Number51.99
Profitability
Industry RankSector 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 RankSector 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 6.61
F-Score5
WACC15.82%
ROIC/WACC0.51
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)2.13%
EPS 3Y-0.2%
EPS 5Y9.44%
EPS Q2Q%16.67%
EPS Next Y16.12%
EPS Next 2Y15.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.84%
Revenue Next Year4.56%
Revenue Next 2Y5.05%
Revenue Next 3YN/A
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 5 / 10 to CNXN.


Can you provide the valuation status for PC CONNECTION INC?

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.


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

The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 20.21 and the Price/Book (PB) ratio is 1.9.


What is the expected EPS growth for PC CONNECTION INC (CNXN) stock?

The Earnings per Share (EPS) of PC CONNECTION INC (CNXN) is expected to grow by 16.12% in the next year.