PC CONNECTION INC (CNXN) Fundamental Analysis & Valuation

NASDAQ:CNXN • US69318J1007

62 USD
+1 (+1.64%)
At close: Mar 4, 2026
62 USD
0 (0%)
After Hours: 3/4/2026, 8:17:06 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This CNXN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

CNXN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. CNXN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CNXN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. CNXN Profitability Analysis

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.
  • 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.
  • Looking at the Return On Equity, with a value of 9.20%, CNXN is in the better half of the industry, outperforming 70.16% 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 77.42% 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 8.86%.
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 has a Profit Margin of 2.91%. This is in the better half of the industry: CNXN outperforms 63.71% of its industry peers.
  • CNXN's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 3.67%, CNXN is in line with its industry, outperforming 58.87% of the companies in the same industry.
  • CNXN's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CNXN (18.77%) is worse than 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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
  • CNXN has less shares outstanding than it did 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 6.16 indicates that CNXN is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.16, CNXN is in the better half of the industry, outperforming 78.23% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.16
ROIC/WACC0.93
WACC8.96%
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.
  • CNXN's Current ratio of 2.90 is fine compared to the rest of the industry. CNXN outperforms 62.10% 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.
  • With a decent Quick ratio value of 2.56, CNXN is doing good in the industry, outperforming 66.13% of the companies in the same industry.
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%.
  • The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
  • 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

  • CNXN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.57% yearly.
  • 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 Y16.12%
EPS Next 2Y15.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.05%
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 18.45, the valuation of CNXN can be described as rather expensive.
  • 80.65% 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 27.03.
  • A Price/Forward Earnings ratio of 15.89 indicates a correct valuation of CNXN.
  • 81.45% of the companies in the same industry are more expensive than CNXN, based on the Price/Forward Earnings ratio.
  • CNXN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.45
Fwd PE 15.89
CNXN Price Earnings VS Forward Price EarningsCNXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • CNXN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNXN is cheaper than 93.55% of the companies in the same industry.
  • 75.81% 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 26.94
EV/EBITDA 8.06
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.
  • The decent profitability rating of CNXN may justify a higher PE ratio.
  • CNXN's earnings are expected to grow with 15.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.95
EPS Next 2Y15.57%
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

  • CNXN has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.44, CNXN pays a better dividend. On top of this CNXN pays more dividend than 92.74% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, CNXN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.31%

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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.27%
EPS Next 2Y15.57%
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 (3/4/2026, 8:17:06 PM)

After market: 62 0 (0%)

62

+1 (+1.64%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners42.19%
Inst Owner Change-1.77%
Ins Owners28.36%
Ins Owner Change0.13%
Market Cap1.56B
Revenue(TTM)2.87B
Net Income(TTM)83.72M
Analysts43.33
Price Target77.52 (25.03%)
Short Float %2.92%
Short Ratio3.83
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
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)-0.81%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.77%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.55%
Valuation
Industry RankSector Rank
PE 18.45
Fwd PE 15.89
P/S 0.54
P/FCF 26.94
P/OCF 23.89
P/B 1.72
P/tB 1.87
EV/EBITDA 8.06
EPS(TTM)3.36
EY5.42%
EPS(NY)3.9
Fwd EY6.29%
FCF(TTM)2.3
FCFY3.71%
OCF(TTM)2.59
OCFY4.18%
SpS113.91
BVpS36.09
TBVpS33.13
PEG (NY)1.14
PEG (5Y)1.95
Graham Number52.23
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 6.16
F-Score5
WACC8.96%
ROIC/WACC0.93
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 Y16.12%
EPS Next 2Y15.57%
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 Year4.05%
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 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 18.45 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 16.12% in the next year.