| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 2/6 |
CDW Overview
CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada.
CDW Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$191.14 |
| 52 Week High | US$105.87 |
| 52 Week Low | US$203.82 |
| Beta | 1.11 |
| 1 Month Change | -1.64% |
| 3 Month Change | 15.30% |
| 1 Year Change | 69.42% |
| 3 Year Change | 114.57% |
| 5 Year Change | 313.01% |
| Change since IPO | 940.50% |
Recent News & Updates
Do CDW's (NASDAQ:CDW) Earnings Warrant Your Attention?
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
These 4 Measures Indicate That CDW (NASDAQ:CDW) Is Using Debt Reasonably Well
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Shareholder Returns
| CDW | US Electronic | US Market | |
|---|---|---|---|
| 7D | -3.5% | -1.5% | -0.6% |
| 1Y | 69.4% | 47.9% | 33.8% |
Return vs Industry: CDW exceeded the US Electronic industry which returned 47.9% over the past year.
Return vs Market: CDW exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| CDW volatility | |
|---|---|
| CDW Beta | 1.11 |
| Industry Beta | 1.33 |
| Market Beta | 1 |
Stable Share Price: CDW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: CDW's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 10,666 | Chris Leahy | https://www.cdw.com |
CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including on-premise, hybrid and cloud capabilities across data center and networking, digital workspace, security, and virtualization.
CDW Fundamentals Summary
| CDW fundamental statistics | |
|---|---|
| Market Cap | US$26.28b |
| Earnings (TTM) | US$938.20m |
| Revenue (TTM) | US$19.70b |
28.0x
P/E Ratio1.3x
P/S RatioIs CDW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CDW income statement (TTM) | |
|---|---|
| Revenue | US$19.70b |
| Cost of Revenue | US$16.31b |
| Gross Profit | US$3.38b |
| Expenses | US$2.45b |
| Earnings | US$938.20m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.62 |
| Gross Margin | 17.18% |
| Net Profit Margin | 4.76% |
| Debt/Equity Ratio | 410.4% |
How did CDW perform over the long term?
See historical performance and comparisonDividends
0.8%
Current Dividend Yield24%
Payout RatioValuation
Is CDW undervalued compared to its fair value and its price relative to the market?
28.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDW ($191.14) is trading above our estimate of fair value ($117.47)
Significantly Below Fair Value: CDW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDW is poor value based on its PE Ratio (28x) compared to the US Electronic industry average (20.7x).
PE vs Market: CDW is poor value based on its PE Ratio (28x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CDW is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: CDW is overvalued based on its PB Ratio (25.1x) compared to the US Electronic industry average (2.8x).
Future Growth
How is CDW forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDW's forecast earnings growth (7.5% per year) is above the savings rate (2%).
Earnings vs Market: CDW's earnings (7.5% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: CDW's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDW's revenue (5.8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: CDW's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CDW's Return on Equity is forecast to be very high in 3 years time (159.1%).
Past Performance
How has CDW performed over the past 5 years?
15.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDW has high quality earnings.
Growing Profit Margin: CDW's current net profit margins (4.8%) are higher than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: CDW's earnings have grown by 15.7% per year over the past 5 years.
Accelerating Growth: CDW's earnings growth over the past year (26.1%) exceeds its 5-year average (15.7% per year).
Earnings vs Industry: CDW earnings growth over the past year (26.1%) underperformed the Electronic industry 40.3%.
Return on Equity
High ROE: Whilst CDW's Return on Equity (89.45%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is CDW's financial position?
Financial Position Analysis
Short Term Liabilities: CDW's short term assets ($5.4B) exceed its short term liabilities ($3.8B).
Long Term Liabilities: CDW's short term assets ($5.4B) exceed its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: CDW's debt to equity ratio (410.4%) is considered high.
Reducing Debt: CDW's debt to equity ratio has increased from 369.9% to 410.4% over the past 5 years.
Debt Coverage: CDW's debt is well covered by operating cash flow (26.6%).
Interest Coverage: CDW's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Dividend
What is CDW current dividend yield, its reliability and sustainability?
0.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CDW's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: CDW's dividend (0.84%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CDW has been paying a dividend for less than 10 years.
Growing Dividend: CDW's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.9%), CDW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CDW's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Chris Leahy (56 yo)
2.67yrs
Tenure
US$6,342,674
Compensation
Ms. Christine A. Leahy, also known as Chris, has been Chief Executive Officer at CDW LLC since January 2019. Ms. Leahy serves as Director at Target Corporation since January 1, 2021. She has been President...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD6.34M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CDW's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: CDW's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CDW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CDW Corporation's employee growth, exchange listings and data sources
Key Information
- Name: CDW Corporation
- Ticker: CDW
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Technology Distributors
- Sector: Tech
- Market Cap: US$26.281b
- Shares outstanding: 137.50m
- Website: https://www.cdw.com
Number of Employees
Location
- CDW Corporation
- 75 Tri-State International
- Lincolnshire
- Illinois
- 60069
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:11 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.