PC CONNECTION INC (CNXN) Fundamental Analysis & Valuation

NASDAQ:CNXN • US69318J1007

Current stock price

59.73 USD
+1.27 (+2.17%)
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.
  • 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.
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

  • Looking at the Return On Assets, with a value of 6.20%, CNXN is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
  • CNXN's Return On Equity of 9.20% is fine compared to the rest 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.
  • 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 8.33%.
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

  • CNXN's Profit Margin of 2.91% is fine compared to the rest of the industry. CNXN outperforms 62.10% of its industry peers.
  • CNXN's Profit Margin has improved in the last couple of years.
  • With a Operating Margin value of 3.67%, CNXN perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CNXN has grown nicely.
  • CNXN's Gross Margin of 18.77% is on the low side compared to the rest of the industry. CNXN is outperformed by 67.74% of its industry peers.
  • 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.
  • Compared to 1 year ago, CNXN has less shares outstanding
  • The number of shares outstanding for CNXN has been reduced compared to 5 years ago.
  • 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 6.04 indicates that CNXN is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of CNXN (6.04) is better than 76.61% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.04
ROIC/WACC0.87
WACC9.6%
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

  • 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.
  • The Current ratio of CNXN (2.90) is better than 60.48% of its industry peers.
  • A Quick Ratio of 2.56 indicates that CNXN has no problem at all paying its short term obligations.
  • The Quick ratio of CNXN (2.56) is better 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%.
  • Measured over the past years, CNXN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.44% on average per year.
  • 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.
  • Based on estimates for the next years, CNXN will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
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 17.78, the valuation of CNXN can be described as rather expensive.
  • Based on the Price/Earnings ratio, CNXN is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
  • CNXN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.58.
  • A Price/Forward Earnings ratio of 15.43 indicates a correct valuation of CNXN.
  • Based on the Price/Forward Earnings ratio, CNXN is valued a bit cheaper than 79.84% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.81. CNXN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.78
Fwd PE 15.43
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

  • 91.13% of the companies in the same industry are more expensive than CNXN, based on the Enterprise Value to EBITDA ratio.
  • 73.39% 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 25.93
EV/EBITDA 7.29
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.
  • CNXN's earnings are expected to grow with 12.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)1.88
EPS Next 2Y12.85%
EPS Next 3YN/A

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

5

5. CNXN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.11%, CNXN has a reasonable but not impressive dividend return.
  • CNXN's Dividend Yield is rather good when compared to the industry average which is at 0.46. CNXN pays more dividend than 87.10% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, CNXN's dividend is way lower than the S&P500 average.
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 (4/1/2026, 3:06:20 PM)

59.73

+1.27 (+2.17%)

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 Cap1.51B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (29.78%)
Short Float %3.16%
Short Ratio3.92
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 17.78
Fwd PE 15.43
P/S 0.52
P/FCF 25.93
P/OCF 23
P/B 1.65
P/tB 1.8
EV/EBITDA 7.29
EPS(TTM)3.36
EY5.63%
EPS(NY)3.87
Fwd EY6.48%
FCF(TTM)2.3
FCFY3.86%
OCF(TTM)2.6
OCFY4.35%
SpS114
BVpS36.12
TBVpS33.16
PEG (NY)1.17
PEG (5Y)1.88
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 6.04
F-Score5
WACC9.6%
ROIC/WACC0.87
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.


What is the valuation status of PC CONNECTION INC (CNXN) stock?

ChartMill assigns a valuation rating of 6 / 10 to PC CONNECTION INC (CNXN). This can be considered as Fairly Valued.


What is the profitability of CNXN stock?

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 17.78 and the Price/Book (PB) ratio is 1.65.


How sustainable is the dividend of PC CONNECTION INC (CNXN) stock?

The dividend rating of PC CONNECTION INC (CNXN) is 5 / 10 and the dividend payout ratio is 18.27%.