PC CONNECTION INC (CNXN) Stock Fundamental Analysis
NASDAQ:CNXN • US69318J1007
63.82 USD
-0.5 (-0.78%)
At close: Feb 13, 2026
63.82 USD
0 (0%)
After Hours: 2/13/2026, 8:00:42 PM
CNXN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CNXN was profitable.
- 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 78.05% 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 69.92% of the companies in the same industry.
- CNXN has a Return On Invested Capital of 8.36%. This is in the better half of the industry: CNXN outperforms 77.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CNXN is in line with the industry average of 8.97%.
| 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
- With a decent Profit Margin value of 2.91%, CNXN is doing good in the industry, outperforming 63.41% of the companies in the same industry.
- CNXN's Profit Margin has improved in the last couple of years.
- 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.
- Looking at the Gross Margin, with a value of 18.77%, CNXN is doing worse than 67.48% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNXN is destroying value.
- Compared to 1 year ago, CNXN has less shares outstanding
- 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
- CNXN has an Altman-Z score of 6.22. This indicates that CNXN is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.22, CNXN is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
- 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 | 6.22 |
ROIC/WACC0.89
WACC9.38%
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 better Current ratio (2.90) than 61.79% of its industry peers.
- A Quick Ratio of 2.56 indicates that CNXN has no problem at all paying its short term obligations.
- CNXN's Quick ratio of 2.56 is fine compared to the rest of the industry. CNXN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
- CNXN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.61%.
- 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
- The Earnings Per Share is expected to grow by 17.15% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.05% on average over the next years.
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
- The Price/Earnings ratio is 19.52, which indicates a rather expensive current valuation of CNXN.
- Based on the Price/Earnings ratio, CNXN is valued cheaper than 82.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.68. CNXN is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 16.36, the valuation of CNXN can be described as correct.
- CNXN's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNXN is cheaper than 81.30% of the companies in the same industry.
- CNXN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
- CNXN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXN is cheaper than 91.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than 72.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 8.46 |
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.
- CNXN's earnings are expected to grow with 17.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)2.21
EPS Next 2Y17.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CNXN has a Yearly Dividend Yield of 1.24%.
- Compared to an average industry Dividend Yield of 0.47, CNXN pays a better dividend. On top of this CNXN pays more dividend than 90.24% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.84, 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.
- 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
63.82
-0.5 (-0.78%)
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-96.7%
Ins Owners28.36%
Ins Owner Change0.19%
Market Cap1.61B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (21.47%)
Short Float %2.94%
Short Ratio4.31
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 | 19.52 | ||
| Fwd PE | 16.36 | ||
| P/S | 0.56 | ||
| P/FCF | 27.73 | ||
| P/OCF | 24.6 | ||
| P/B | 1.77 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)3.27
EY5.12%
EPS(NY)3.9
Fwd EY6.11%
FCF(TTM)2.3
FCFY3.61%
OCF(TTM)2.59
OCFY4.07%
SpS113.91
BVpS36.09
TBVpS33.13
PEG (NY)1.01
PEG (5Y)2.21
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 | 6.22 |
F-Score5
WACC9.38%
ROIC/WACC0.89
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 19.52 and the Price/Book (PB) ratio is 1.77.
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.