60.28 USD
-1.01 (-1.65%)
60.28 USD
0 (0%)
Overall CNXN gets a fundamental rating of 6 out of 10. We evaluated CNXN against 125 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.
1. Profitability
1.1 Basic Checks
In the past year CNXN was profitable.
CNXN had a positive operating cash flow in the past year.
In the past 5 years CNXN has always been profitable.
CNXN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CNXN (6.41%) is better than 77.60% of its industry peers.
CNXN has a Return On Equity of 9.28%. This is in the better half of the industry: CNXN outperforms 71.20% of its industry peers.
The Return On Invested Capital of CNXN (8.12%) is better than 76.00% 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 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROIC | 8.12% |
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
1.3 Margins
The Profit Margin of CNXN (2.91%) is comparable to the rest of the industry.
CNXN's Profit Margin has been stable in the last couple of years.
CNXN has a Operating Margin of 3.52%. This is comparable to the rest of the industry: CNXN outperforms 57.60% of its industry peers.
In the last couple of years the Operating Margin of CNXN has declined.
CNXN has a Gross Margin of 18.53%. This is in the lower half of the industry: CNXN underperforms 68.80% of its industry peers.
CNXN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% |
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
2. Health
2.1 Basic Checks
CNXN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CNXN has less shares outstanding than it did 1 year ago.
CNXN has about the same amout of shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 6.45 indicates that CNXN is not in any danger for bankruptcy at the moment.
The Altman-Z score of CNXN (6.45) is better than 80.80% 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 | 6.45 |
ROIC/WACC0.9
WACC8.97%
2.3 Liquidity
A Current Ratio of 3.06 indicates that CNXN has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.06, CNXN is doing good in the industry, outperforming 61.60% of the companies in the same industry.
A Quick Ratio of 2.71 indicates that CNXN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.71, CNXN is doing good in the industry, outperforming 66.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
The earnings per share for CNXN have decreased by -5.28% in the last year.
CNXN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.20% yearly.
CNXN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
Measured over the past years, CNXN shows a decrease in Revenue. The Revenue has been decreasing by -0.13% on average per year.
EPS 1Y (TTM)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
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 10.91% on average per year.
Based on estimates for the next years, CNXN will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y5.41%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
CNXN is valuated rather expensively with a Price/Earnings ratio of 18.66.
80.80% of the companies in the same industry are more expensive than CNXN, based on the Price/Earnings ratio.
CNXN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of CNXN.
Based on the Price/Forward Earnings ratio, CNXN is valued cheaper than 86.40% of the companies in the same industry.
CNXN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
93.60% of the companies in the same industry are more expensive than CNXN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNXN is valued a bit cheaper than 72.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.32 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNXN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.45
PEG (5Y)15.59
EPS Next 2Y11.01%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, CNXN is not a good candidate for dividend investing.
CNXN's Dividend Yield is rather good when compared to the industry average which is at 0.69. CNXN pays more dividend than 85.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.96, CNXN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of CNXN has a limited annual growth rate of 4.51%.
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)4.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.89% 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.
DP16.89%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
60.28
-1.01 (-1.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners42.2%
Inst Owner Change-1.69%
Ins Owners28.39%
Ins Owner Change0.11%
Market Cap1.52B
Revenue(TTM)2.88B
Net Income(TTM)83.73M
Analysts43.33
Price Target77.52 (28.6%)
Short Float %2.66%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.4
Dividend Growth(5Y)4.51%
DP16.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-5.38%
Max EPS beat(2)5.08%
EPS beat(4)2
Avg EPS beat(4)1.29%
Min EPS beat(4)-15.03%
Max EPS beat(4)20.48%
EPS beat(8)4
Avg EPS beat(8)-0.12%
EPS beat(12)6
Avg EPS beat(12)0%
EPS beat(16)10
Avg EPS beat(16)5.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-2.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)6.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.83%
Revenue beat(12)3
Avg Revenue beat(12)-2.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.66 | ||
| Fwd PE | 14.87 | ||
| P/S | 0.53 | ||
| P/FCF | 27.32 | ||
| P/OCF | 24.06 | ||
| P/B | 1.69 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)3.23
EY5.36%
EPS(NY)4.05
Fwd EY6.73%
FCF(TTM)2.21
FCFY3.66%
OCF(TTM)2.51
OCFY4.16%
SpS114.01
BVpS35.75
TBVpS32.79
PEG (NY)3.45
PEG (5Y)15.59
Graham Number50.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 9.28% | ||
| ROCE | 10.99% | ||
| ROIC | 8.12% | ||
| ROICexc | 14.32% | ||
| ROICexgc | 16.72% | ||
| OM | 3.52% | ||
| PM (TTM) | 2.91% | ||
| GM | 18.53% | ||
| FCFM | 1.94% |
ROA(3y)7.27%
ROA(5y)6.75%
ROE(3y)10.37%
ROE(5y)10.02%
ROIC(3y)9.38%
ROIC(5y)9.24%
ROICexc(3y)14.03%
ROICexc(5y)12.66%
ROICexgc(3y)16.27%
ROICexgc(5y)14.67%
ROCE(3y)12.69%
ROCE(5y)12.51%
ROICexgc growth 3Y8.7%
ROICexgc growth 5Y-0.74%
ROICexc growth 3Y7.7%
ROICexc growth 5Y-0.84%
OM growth 3Y1.4%
OM growth 5Y-2.74%
PM growth 3Y8.75%
PM growth 5Y1.32%
GM growth 3Y4.92%
GM growth 5Y3%
F-Score5
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.91% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 101253 | ||
| Cash Conversion | 55.85% | ||
| Profit Quality | 66.53% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 2.71 | ||
| Altman-Z | 6.45 |
F-Score5
WACC8.97%
ROIC/WACC0.9
Cap/Depr(3y)69.99%
Cap/Depr(5y)75.1%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.34%
Profit Quality(3y)148.69%
Profit Quality(5y)111.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.28%
EPS 3Y7.34%
EPS 5Y1.2%
EPS Q2Q%-4.9%
EPS Next Y5.41%
EPS Next 2Y11.01%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y-1.05%
Revenue growth 5Y-0.13%
Sales Q2Q%-2.16%
Revenue Next Year3.49%
Revenue Next 2Y4%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
EBIT growth 1Y-1.49%
EBIT growth 3Y0.34%
EBIT growth 5Y-2.86%
EBIT Next Year5.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.49%
FCF growth 3Y51.9%
FCF growth 5Y72.33%
OCF growth 1Y-69.12%
OCF growth 3Y44.4%
OCF growth 5Y36.57%
PC CONNECTION INC / CNXN FAQ
Can you provide the ChartMill fundamental rating for PC CONNECTION INC?
ChartMill assigns a fundamental rating of 6 / 10 to CNXN.
What is the valuation status for CNXN stock?
ChartMill assigns a valuation rating of 5 / 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 5 / 10.
What are the PE and PB ratios of PC CONNECTION INC (CNXN) stock?
The Price/Earnings (PE) ratio for PC CONNECTION INC (CNXN) is 18.66 and the Price/Book (PB) ratio is 1.69.
Can you provide the dividend sustainability for CNXN stock?
The dividend rating of PC CONNECTION INC (CNXN) is 5 / 10 and the dividend payout ratio is 16.89%.