PC CONNECTION INC (CNXN) Stock Fundamental Analysis
NASDAQ:CNXN • US69318J1007
62.11 USD
-0.24 (-0.38%)
At close: Feb 18, 2026
62.11 USD
0 (0%)
After Hours: 2/18/2026, 8:22:42 PM
We assign a fundamental rating of 7 out of 10 to CNXN. CNXN was compared to 122 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 correct valuation and a medium growth rate.
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.
- In the past 5 years CNXN always reported a positive cash flow from operatings.
1.2 Ratios
- CNXN's Return On Assets of 6.20% is fine compared to the rest of the industry. CNXN outperforms 78.69% of its industry peers.
- CNXN has a Return On Equity of 9.20%. This is in the better half of the industry: CNXN outperforms 69.67% of its industry peers.
- The Return On Invested Capital of CNXN (8.36%) is better than 77.05% 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 8.80%.
| 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 better Profit Margin (2.91%) than 62.30% of its industry peers.
- CNXN's Profit Margin has improved in the last couple of years.
- CNXN has a Operating Margin of 3.67%. This is comparable to the rest of the industry: CNXN outperforms 58.20% of its industry peers.
- 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 67.21% of its industry peers.
- CNXN's Gross Margin has improved in the last couple of years.
| 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
- 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.
- Compared to 5 years ago, CNXN has less shares outstanding
- 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
- An Altman-Z score of 6.17 indicates that CNXN is not in any danger for bankruptcy at the moment.
- CNXN's Altman-Z score of 6.17 is fine compared to the rest of the industry. CNXN outperforms 78.69% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.17 |
ROIC/WACC0.88
WACC9.45%
2.3 Liquidity
- CNXN has a Current Ratio of 2.90. This indicates that CNXN is financially healthy and has no problem in meeting its short term obligations.
- CNXN's Current ratio of 2.90 is fine compared to the rest of the industry. CNXN outperforms 62.30% of its industry peers.
- A Quick Ratio of 2.56 indicates that CNXN has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.56, CNXN is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 8.85% on average over the past years. This is quite good.
- CNXN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.52%.
- The Revenue has been growing slightly by 2.09% on average over the past years.
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
- Based on estimates for the next years, CNXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.15% 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 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.99 indicates a rather expensive valuation of CNXN.
- Based on the Price/Earnings ratio, CNXN is valued cheaper than 82.79% of the companies in the same industry.
- CNXN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
- CNXN is valuated correctly with a Price/Forward Earnings ratio of 15.92.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CNXN indicates a rather cheap valuation: CNXN is cheaper than 81.97% of the companies listed in the same industry.
- CNXN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 15.92 |
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 92.62% of the companies listed in the same industry.
- 73.77% of the companies in the same industry are more expensive than CNXN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.98 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
- CNXN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of CNXN may justify a higher PE ratio.
- A more expensive valuation may be justified as CNXN's earnings are expected to grow with 17.15% in the coming years.
PEG (NY)0.98
PEG (5Y)2.15
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 0.48. CNXN pays more dividend than 90.16% of the companies in the same industry.
- CNXN's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
| 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.
- CNXN has decreased its dividend recently.
Dividend Growth(5Y)13.09%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 18.27% of the earnings are spent on dividend by CNXN. This is a low number and sustainable payout ratio.
- CNXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.27%
EPS Next 2Y17.15%
EPS Next 3YN/A
62.11
-0.24 (-0.38%)
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-1.5%
Ins Owners28.36%
Ins Owner Change0.19%
Market Cap1.57B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (24.81%)
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 | 18.99 | ||
| Fwd PE | 15.92 | ||
| P/S | 0.55 | ||
| P/FCF | 26.98 | ||
| P/OCF | 23.94 | ||
| P/B | 1.72 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)3.27
EY5.26%
EPS(NY)3.9
Fwd EY6.28%
FCF(TTM)2.3
FCFY3.71%
OCF(TTM)2.59
OCFY4.18%
SpS113.91
BVpS36.09
TBVpS33.13
PEG (NY)0.98
PEG (5Y)2.15
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 | 6.17 |
F-Score5
WACC9.45%
ROIC/WACC0.88
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 18.99 and the Price/Book (PB) ratio is 1.72.
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.