NasdaqGS:CDW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Adequate balance sheet with proven 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

Stable Share Price: CDW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CDW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

CDW

-4.0%

US Electronic

-2.5%

US Market


1 Year Return

25.6%

CDW

46.5%

US Electronic

34.1%

US Market

Return vs Industry: CDW underperformed the US Electronic industry which returned 46.5% over the past year.

Return vs Market: CDW underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

CDWIndustryMarket
7 Day0.8%-4.0%-2.5%
30 Day16.2%0.9%0.1%
90 Day19.1%13.3%4.5%
1 Year27.2%25.6%50.2%46.5%37.1%34.1%
3 Year121.5%113.9%52.9%46.4%58.0%47.9%
5 Year312.5%289.5%160.4%143.5%131.9%106.2%

Long-Term 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

Valuation

Is CDW undervalued compared to its fair value and its price relative to the market?

28.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDW ($157.18) is trading above our estimate of fair value ($90.35)

Significantly Below Fair Value: CDW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CDW's PE Ratio (28.4x) is in line with the US Electronic industry average.

PE vs Market: CDW is poor value based on its PE Ratio (28.4x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CDW is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CDW is overvalued based on its PB Ratio (17.3x) compared to the US Electronic industry average (2.9x).


Next Steps

Future Growth

How is CDW forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDW's forecast earnings growth (8.3% per year) is above the savings rate (2%).

Earnings vs Market: CDW's earnings (8.3% per year) are forecast to grow slower than the US market (20.4% per year).

High Growth Earnings: CDW's earnings are forecast to grow, but not significantly.

Revenue vs Market: CDW's revenue (5.3% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: CDW's revenue (5.3% 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 (97.9%).


Next Steps

Past Performance

How has CDW performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDW has high quality earnings.

Growing Profit Margin: CDW's current net profit margins (4.3%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: CDW's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: CDW's earnings growth over the past year (7%) is below its 5-year average (15.1% per year).

Earnings vs Industry: CDW earnings growth over the past year (7%) exceeded the Electronic industry -12.1%.


Return on Equity

High ROE: Whilst CDW's Return on Equity (60.79%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CDW's financial position?


Financial Position Analysis

Short Term Liabilities: CDW's short term assets ($6.0B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: CDW's short term assets ($6.0B) exceed its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: CDW's debt to equity ratio (340.9%) is considered high.

Reducing Debt: CDW's debt to equity ratio has increased from 337.8% to 340.9% over the past 5 years.

Debt Coverage: CDW's debt is well covered by operating cash flow (29.7%).

Interest Coverage: CDW's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is CDW current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDW's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: CDW's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.75%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), 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 (17.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Chris Leahy (55 yo)

2.08yrs

Tenure

US$6,191,797

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 Presiden...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD6.19M) is below average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christine Leahy
President2.08yrsUS$6.19m0.057%
$ 12.7m
Collin Kebo
Senior VP & CFO4.75yrsUS$2.68m0.026%
$ 5.8m
Christina Corley
Chief Commercial & Operating Officer2.08yrsUS$3.39m0.029%
$ 6.4m
Mark Chong
Senior Vice President of Strategy & Marketing4.25yrsUS$1.99m0.0084%
$ 1.9m
Douglas Eckrote
Senior Vice President of Small Business Sales & eCommerce11.25yrsUS$1.97m0.099%
$ 22.2m
Ilaria Mocciaro
VP, Controller & Chief Accounting Officer0.42yrno datano data
Sanjay Sood
CTO & Senior VP0.58yrno datano data
Beth Coronelli
Vice President of Investor Relations2.25yrsno datano data
Brittany Smith
Vice President of Investor Relationsno datano datano data
Frederick Kulevich
Senior VP3.33yrsno data0.011%
$ 2.4m
Sara Granack
Vice President of Corporate Communications & Reputationno datano datano data
Jill Billhorn
Senior Vice President of Corporate Sales2.08yrsno data0.010%
$ 2.3m

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CDW's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christine Leahy
President2.08yrsUS$6.19m0.057%
$ 12.7m
Paul Finnegan
Independent Director10.08yrsUS$255.00k0.013%
$ 2.9m
Benjamin Chereskin
Independent Director14.08yrsUS$255.00k0.14%
$ 31.7m
David Nelms
Independent Non-Executive Chairman1.08yrsUS$275.00k0%
$ 0
Donna Zarcone
Independent Director9.75yrsUS$255.00k0.0049%
$ 1.1m
Michael Krasny
Chairman Emeritusno dataUS$170.41kno data
Barry Allen
Independent Director11.58yrsUS$255.00k0.0092%
$ 2.1m
Steven Alesio
Independent Director11.58yrsUS$270.00k0.0013%
$ 298.9k
Joseph Swedish
Independent Director5.5yrsUS$255.00k0.0077%
$ 1.7m
James Bell
Independent Director5.92yrsUS$255.00k0.0025%
$ 564.1k
Lynda Clarizio
Independent Director5.17yrsUS$255.00k0.0062%
$ 1.4m
Virginia Addicott
Independent Director4.92yrsUS$275.00k0%
$ 0

5.9yrs

Average Tenure

64yo

Average Age

Experienced Board: CDW's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$22.475b
  • Shares outstanding: 142.99m
  • Website: https://www.cdw.com

Number of Employees


Location

  • CDW Corporation
  • 75 Tri-State International
  • Lincolnshire
  • Illinois
  • 60069
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDWNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2013
CDWDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2013
CDW *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 2013
C1DW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REPR 1 COM NPVBRBRLOct 2020

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/23 23:49
End of Day Share Price2021/02/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.