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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

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. 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.


Dividend Valuation Growth Profitability Health

6

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.
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

  • With a decent Return On Assets value of 6.20%, CNXN is doing good in the industry, outperforming 79.03% of the companies in the same industry.
  • CNXN has a better Return On Equity (9.20%) than 70.16% of its industry peers.
  • CNXN has a better Return On Invested Capital (8.36%) than 77.42% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CNXN is in line with the industry average of 8.91%.
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 63.71% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CNXN has grown nicely.
  • CNXN's Operating Margin of 3.67% is in line compared to the rest of the industry. CNXN outperforms 58.87% of its industry peers.
  • CNXN's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 18.77%, CNXN is doing worse than 67.74% of the companies in the same industry.
  • 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. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNXN is destroying value.
  • The number of shares outstanding for CNXN has been reduced compared to 1 year ago.
  • The number of shares outstanding for CNXN has been reduced 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.
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 6.13. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 6.13, CNXN is doing good in the industry, outperforming 79.03% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.13
ROIC/WACC0.94
WACC8.89%
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 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.
  • With a decent Quick ratio value of 2.56, CNXN is doing good in the industry, outperforming 67.74% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • The Revenue has been growing slightly by 2.52% in the past year.
  • Measured over the past years, CNXN shows a small growth in Revenue. The Revenue has been growing by 2.09% on average per year.
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

  • 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.
  • The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y16.12%
EPS Next 2Y15.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.05%
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.14, which indicates a rather expensive current 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 83.87% of the companies listed in the same industry.
  • CNXN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • CNXN is valuated correctly with a Price/Forward Earnings ratio of 15.62.
  • CNXN's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 82.26% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, CNXN is valued a bit cheaper.
Industry RankSector Rank
PE 18.14
Fwd PE 15.62
CNXN Price Earnings VS Forward Price EarningsCNXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
  • 75.00% of the companies in the same industry are more expensive than CNXN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 26.48
EV/EBITDA 7.84
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.
  • The decent profitability rating of CNXN may justify a higher PE ratio.
  • CNXN's earnings are expected to grow with 15.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.92
EPS Next 2Y15.57%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.31%, CNXN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.45, CNXN pays a better dividend. On top of this CNXN pays more dividend than 91.94% of the companies listed in the same industry.
  • CNXN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.31%

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.
  • CNXN has decreased its dividend recently.
Dividend Growth(5Y)13.09%
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 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 18.27% of the earnings are spent on dividend by CNXN. This is a low number and sustainable payout ratio.
  • The dividend of CNXN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.27%
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 2025 50M 100M 150M
CNXN Dividend Payout.CNXN Dividend Payout, showing the Payout Ratio.CNXN Dividend Payout.PayoutRetained Earnings

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PC CONNECTION INC

NASDAQ:CNXN (2/27/2026, 8:00:00 PM)

After market: 60.95 0 (0%)

60.95

-0.06 (-0.1%)

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-1.77%
Ins Owners28.36%
Ins Owner Change0.13%
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 RankSector Rank
Dividend Yield 1.31%
Yearly Dividend0.59
Dividend Growth(5Y)13.09%
DP18.27%
Div Incr Years1
Div Non Decr Years1
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)-0.81%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.77%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.55%
Valuation
Industry RankSector Rank
PE 18.14
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 7.84
EPS(TTM)3.36
EY5.51%
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)1.13
PEG (5Y)1.92
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 6.13
F-Score5
WACC8.89%
ROIC/WACC0.94
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 Y16.12%
EPS Next 2Y15.57%
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 Year4.05%
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 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 18.14 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 16.12% in the next year.