PC CONNECTION INC (CNXN) Fundamental Analysis & Valuation

NASDAQ:CNXN • US69318J1007

Current stock price

57.15 USD
+0.01 (+0.02%)
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

  • CNXN had positive earnings in the past year.
  • CNXN had a positive operating cash flow in the past year.
  • In the past 5 years CNXN has always been profitable.
  • In the past 5 years CNXN always reported a positive cash flow from operatings.
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

  • CNXN has a better Return On Assets (6.20%) than 79.03% of its industry peers.
  • CNXN has a Return On Equity of 9.20%. This is in the better half of the industry: CNXN outperforms 67.74% of its industry peers.
  • With a decent Return On Invested Capital value of 8.36%, CNXN is doing good in the industry, outperforming 78.23% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CNXN is in line with the industry average of 8.33%.
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

  • The Profit Margin of CNXN (2.91%) is better than 62.10% of its industry peers.
  • In the last couple of years the Profit Margin of CNXN has grown nicely.
  • CNXN has a Operating Margin of 3.67%. This is comparable to the rest of the industry: CNXN outperforms 58.06% 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. CNXN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXN is destroying value.
  • CNXN has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CNXN has less shares outstanding
  • 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.
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

  • An Altman-Z score of 5.99 indicates that CNXN is not in any danger for bankruptcy at the moment.
  • CNXN has a Altman-Z score of 5.99. This is in the better half of the industry: CNXN outperforms 76.61% 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 5.99
ROIC/WACC0.86
WACC9.73%
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.
  • CNXN has a Quick Ratio of 2.56. This indicates that CNXN is financially healthy and has no problem in meeting 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CNXN Growth Analysis

3.1 Past

  • CNXN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.13%.
  • CNXN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.44% yearly.
  • Looking at the last year, CNXN shows a small growth in Revenue. The Revenue has grown by 2.52% in the last year.
  • The Revenue has been growing slightly by 2.09% on average over the past years.
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 12.85% on average per year.
  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • Based on the Price/Earnings ratio of 17.01, the valuation of CNXN can be described as rather expensive.
  • 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 24.89, CNXN is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 14.76, which indicates a correct valuation of CNXN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CNXN indicates a somewhat cheap valuation: CNXN is cheaper than 79.84% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, CNXN is valued a bit cheaper.
Industry RankSector Rank
PE 17.01
Fwd PE 14.76
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

  • Based on the Enterprise Value to EBITDA ratio, CNXN is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
  • 74.19% 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 24.81
EV/EBITDA 7.01
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.
  • A more expensive valuation may be justified as CNXN's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)1.12
PEG (5Y)1.8
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 1.11%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.46, CNXN pays a better dividend. On top of this CNXN pays more dividend than 87.10% of the companies listed in the same industry.
  • With a Dividend Yield of 1.11, CNXN pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.11%

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 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

  • 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 (3/30/2026, 11:06:29 AM)

57.15

+0.01 (+0.02%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners41.83%
Inst Owner Change-1.76%
Ins Owners28.45%
Ins Owner Change0.25%
Market Cap1.44B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (35.64%)
Short Float %2.77%
Short Ratio3.63
Dividend
Industry RankSector Rank
Dividend Yield 1.11%
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%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.55%
Valuation
Industry RankSector Rank
PE 17.01
Fwd PE 14.76
P/S 0.5
P/FCF 24.81
P/OCF 22.01
P/B 1.58
P/tB 1.72
EV/EBITDA 7.01
EPS(TTM)3.36
EY5.88%
EPS(NY)3.87
Fwd EY6.77%
FCF(TTM)2.3
FCFY4.03%
OCF(TTM)2.6
OCFY4.54%
SpS114
BVpS36.12
TBVpS33.16
PEG (NY)1.12
PEG (5Y)1.8
Graham Number52.25
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 5.99
F-Score5
WACC9.73%
ROIC/WACC0.86
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.


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 17.01 and the Price/Book (PB) ratio is 1.58.


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 15.21% in the next year.