Market Cap
US$18.0b
Last Updated
2019/10/22 00:33 UTC
Data Sources
Company Financials +
Executive Summary
CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada.
Snowflake
Fundamentals
Excellent balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has CDW's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
0.6%
CDW
3.8%
US Electronic
1.0%
US Market
1 Year Return
49.2%
CDW
15.9%
US Electronic
8.0%
US Market
Return vs Industry: CDW exceeded the US Electronic industry which returned 15.9% over the past year.
Return vs Market: CDW exceeded the US Market which returned 8% over the past year.
Shareholder returns
| CDW | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 3.8% | 1.0% |
| 30 Day | 2.5% | 3.9% | -0.07% |
| 90 Day | 9.2% | 2.7% | -1.0% |
| 1 Year | 51.0%49.2% | 17.1%15.9% | 10.4%8.0% |
| 3 Year | 186.8%177.1% | 54.6%50.2% | 46.2%36.7% |
| 5 Year | 330.6%308.9% | 88.4%79.1% | 64.3%46.2% |
Price Volatility Vs. Market
How volatile is CDW's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Should CDW Corporation (NASDAQ:CDW) Be Part Of Your Dividend Portfolio?2 weeks ago | Simply Wall St
Why You Should Like CDW Corporation’s (NASDAQ:CDW) ROCE3 weeks ago | Simply Wall St
Should We Be Delighted With CDW Corporation's (NASDAQ:CDW) ROE Of 74%?Valuation
Is CDW undervalued compared to its fair value and its price relative to the market?
26.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDW ($124.06) is trading above our estimate of fair value ($80.01)
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 (26.5x) compared to the Electronic industry average (19.5x).
PE vs Market: CDW is poor value based on its PE Ratio (26.5x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: CDW is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: CDW is overvalued based on its PB Ratio (19.2x) compared to the US Electronic industry average (2x).
Next Steps
Future Growth
How is CDW forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDW's forecast earnings growth (6.3% per year) is above the savings rate (2.7%).
Earnings vs Market: CDW's earnings (6.3% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: CDW's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDW's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: CDW's revenue (5.4% 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 (72.8%).
Next Steps
Past Performance
How has CDW performed over the past 5 years?
21.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CDW's earnings have grown significantly by 21.7% per year over the past 5 years.
Accelerating Growth: CDW's earnings growth over the past year (11%) is below its 5-year average (21.7% per year).
Earnings vs Industry: CDW earnings growth over the past year (11%) underperformed the Electronic industry 58.6%.
Return on Equity
High ROE: Whilst CDW's Return on Equity (73.98%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: CDW has a higher Return on Assets than the Electronic industry average last year.
Return on Capital Employed
ROCE Improving: CDW has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is CDW's financial position?
Financial Position Analysis
Short Term Liabilities: CDW's short term assets ($4.4B) exceeds its short term liabilities ($3.5B)
Long Term Liabilities: CDW's short term assets (4.4B) exceeds its long term liabilities (3.5B)
Debt to Equity History and Analysis
Debt Level: CDW's debt to equity ratio (400%) is considered high
Reducing Debt: CDW's debt to equity ratio has reduced from 406.7% to 400% over the past 5 years.
Debt Coverage: CDW's debt is well covered by operating cash flow (26.4%).
Interest Coverage: CDW's interest payments on its debt are well covered by EBIT (6.9x coverage).
Balance Sheet
Inventory Level: CDW has a low level of unsold assets or inventory.
Debt Coverage by Assets: CDW's debt is covered by short term assets (assets are 1.181810x debt).
Next Steps
Dividend
What is CDW's current dividend yield, its reliability and sustainability?
0.95%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CDW's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CDW's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.4%), 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 (22.9% payout ratio).
Next Steps
Management
What is the CEO of CDW's salary, the management and board of directors tenure and is there insider trading?
2.0yrs
Average management tenure
CEO
Chris Leahy (54yo)
0.8yrs
Tenure
US$2,754,362
Compensation
Ms. Christine A. Leahy, also known as Chris, has been Chief Executive Officer at CDW LLC since January, 2019. She has been President, Chief Executive Officer and Director of CDW Corporation since January 1 ...
CEO Compensation Analysis
Compensation vs. Market: Chris has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.0yrs
Average Tenure
53yo
Average Age
Experienced Management: CDW's management team is considered experienced (2 years average tenure).
Board Age and Tenure
8.6yrs
Average Tenure
62.5yo
Average Age
Experienced Board: CDW's board of directors are considered experienced (8.6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 600 |
| Max Price | US$95.01 |
| Entity | Individual |
| Shares | 1,468 |
| Max Price | US$95.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,013 |
| Max Price | US$91.00 |
Ownership Breakdown
Management Team
Doug Eckrote (54yo)
Senior Vice President of Small Business Sales & eCommerce
- Tenure: 9.9yrs
- Compensation: US$1.92m
Jonathan Stevens (49yo)
Senior VP of Operations & Chief Information Officer
- Tenure: 17.8yrs
- Compensation: US$1.25m
Chris Leahy (54yo)
President
- Tenure: 0.8yrs
- Compensation: US$2.75m
Chris Corley (51yo)
Chief Operating Officer
- Tenure: 0.8yrs
- Compensation: US$2.05m
Tom Richards (64yo)
Executive Chairman
- Tenure: 6.8yrs
- Compensation: US$9.06m
Collin Kebo (51yo)
Senior VP & CFO
- Tenure: 3.4yrs
- Compensation: US$1.73m
Neil Fairfield
Chief Accounting Officer
- Tenure: 2.4yrs
Sara Granack
Vice President of Corporate Communications & Reputation
- Tenure: 0yrs
Rick Kulevich (53yo)
Senior VP
- Tenure: 2yrs
Beth Coronelli
Vice President of Investor Relations
- Tenure: 0.9yrs
Board Members
Paul Finnegan (66yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$225.00k
Benjamin Chereskin (60yo)
Independent Director
- Tenure: 12yrs
- Compensation: US$225.00k
David Nelms (58yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$225.00k
Donna Zarcone (61yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: US$225.00k
Michael Krasny (65yo)
Chairman Emeritus
- Tenure: 0yrs
- Compensation: US$170.41k
Barry Allen (70yo)
Independent Director
- Tenure: 10.3yrs
- Compensation: US$235.00k
Steve Alesio (65yo)
Independent Director
- Tenure: 10.3yrs
- Compensation: US$240.00k
Chris Leahy (54yo)
President
- Tenure: 0.8yrs
- Compensation: US$2.75m
Tom Richards (64yo)
Executive Chairman
- Tenure: 6.8yrs
- Compensation: US$9.06m
Virginia Addicott (55yo)
Independent Director
- Tenure: 3.6yrs
- Compensation: US$245.00k
Company Information
CDW Corporation's company bio, 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$17.953b
- Shares outstanding: 144.71m
- Website: https://www.cdw.com
Number of Employees
Location
- CDW Corporation
- 75 Tri-State International
- Lincolnshire
- Illinois
- 60069
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CDW | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jun 2013 |
| CDW | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 2013 |
Biography
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 thro ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 00:33 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.