PC CONNECTION INC (CNXN) Stock Fundamental Analysis
NASDAQ:CNXN • US69318J1007
60.95 USD
-0.06 (-0.1%)
At close: Feb 27, 2026
60.95 USD
0 (0%)
After Hours: 2/27/2026, 8:00:00 PM
Overall CNXN gets a fundamental rating of 7 out of 10. We evaluated CNXN against 124 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 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.
- 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.
1.2 Ratios
- CNXN's Return On Assets of 6.20% is fine compared to the rest of the industry. CNXN outperforms 79.03% of its industry peers.
- Looking at the Return On Equity, with a value of 9.20%, CNXN is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
- CNXN has a better Return On Invested Capital (8.36%) than 77.42% 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 8.85%.
| Industry Rank | Sector 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%
1.3 Margins
- CNXN has a Profit Margin of 2.91%. This is in the better half of the industry: CNXN outperforms 62.90% of its industry peers.
- In the last couple of years the Profit Margin of CNXN has grown nicely.
- CNXN has a Operating Margin (3.67%) which is in line with its industry peers.
- CNXN's Operating Margin has improved in the last couple of years.
- CNXN has a worse Gross Margin (18.77%) than 67.74% of its industry peers.
- In the last couple of years the Gross Margin of CNXN has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- CNXN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for CNXN has been reduced compared to 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.
2.2 Solvency
- CNXN has an Altman-Z score of 6.13. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
- CNXN's Altman-Z score of 6.13 is fine compared to the rest of the industry. CNXN outperforms 79.03% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.13 |
ROIC/WACC0.92
WACC9.06%
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 62.90% 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 Quick ratio of 2.56. This is in the better half of the industry: CNXN outperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
- The earnings per share for CNXN have decreased by -0.61% in the last year.
- CNXN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.85% yearly.
- 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)-0.61%
EPS 3Y-1.1%
EPS 5Y8.85%
EPS Q2Q%5.13%
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 17.15% yearly.
- 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 Y19.31%
EPS Next 2Y17.15%
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
- 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 18.64 indicates a rather expensive valuation of CNXN.
- CNXN's Price/Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 83.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.10, CNXN is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.62, which indicates a correct valuation of CNXN.
- Based on the Price/Forward Earnings ratio, CNXN is valued cheaper than 81.45% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. CNXN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNXN is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than the industry average as 76.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.48 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 17.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)2.11
EPS Next 2Y17.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CNXN has a Yearly Dividend Yield of 1.24%.
- CNXN's Dividend Yield is rather good when compared to the industry average which is at 0.45. CNXN pays more dividend than 91.13% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.83, CNXN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- The dividend of CNXN is nicely growing with an annual growth rate of 13.09%!
- 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)13.09%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CNXN pays out 18.27% 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.
DP18.27%
EPS Next 2Y17.15%
EPS Next 3YN/A
60.95
-0.06 (-0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-28 2026-04-28
Inst Owners42.19%
Inst Owner Change-1.77%
Ins Owners28.36%
Ins Owner Change0.19%
Market Cap1.54B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (27.19%)
Short Float %3.45%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.59
Dividend Growth(5Y)13.09%
DP18.27%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.95%
Min EPS beat(2)-6.52%
Max EPS beat(2)-5.38%
EPS beat(4)2
Avg EPS beat(4)3.42%
Min EPS beat(4)-6.52%
Max EPS beat(4)20.48%
EPS beat(8)3
Avg EPS beat(8)-0.97%
EPS beat(12)6
Avg EPS beat(12)-0.11%
EPS beat(16)9
Avg EPS beat(16)4.13%
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)-3.77%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 15.62 | ||
| P/S | 0.54 | ||
| P/FCF | 26.48 | ||
| P/OCF | 23.49 | ||
| P/B | 1.69 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)3.27
EY5.37%
EPS(NY)3.9
Fwd EY6.4%
FCF(TTM)2.3
FCFY3.78%
OCF(TTM)2.59
OCFY4.26%
SpS113.91
BVpS36.09
TBVpS33.13
PEG (NY)0.97
PEG (5Y)2.11
Graham Number51.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.13 |
F-Score5
WACC9.06%
ROIC/WACC0.92
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)-0.61%
EPS 3Y-1.1%
EPS 5Y8.85%
EPS Q2Q%5.13%
EPS Next Y19.31%
EPS Next 2Y17.15%
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 Year4.56%
Revenue Next 2Y5.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.02%
EBIT growth 3Y-4.42%
EBIT growth 5Y7.6%
EBIT Next Year21.47%
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 FAQ
Can you provide the ChartMill fundamental rating for PC CONNECTION INC?
ChartMill assigns a fundamental rating of 7 / 10 to CNXN.
Can you provide the valuation status for PC CONNECTION INC?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the PE and PB ratios for CNXN stock?
The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 18.64 and the Price/Book (PB) ratio is 1.69.
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 19.31% in the next year.