Market Cap
US$13.8b
Last Updated
2020/03/31 02:15 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.
Rewards
Risk Analysis
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.3%
CDW
3.7%
US Electronic
7.2%
US Market
1 Year Return
-2.4%
CDW
-20.6%
US Electronic
-10.4%
US Market
Return vs Industry: CDW exceeded the US Electronic industry which returned -21.6% over the past year.
Return vs Market: CDW exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| CDW | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 3.7% | 7.2% |
| 30 Day | -15.2% | -16.7% | -12.6% |
| 90 Day | -32.2% | -28.1% | -19.4% |
| 1 Year | -1.3%-2.4% | -19.7%-20.6% | -8.5%-10.4% |
| 3 Year | 73.2%67.4% | 2.3%-0.6% | 15.8%8.3% |
| 5 Year | 175.0%160.7% | 25.9%19.6% | 35.8%21.0% |
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
5 days ago | Simply Wall St
What Is CDW Corporation's (NASDAQ:CDW) Share Price Doing?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At CDW Corporation's (NASDAQ:CDW) P/E Ratio4 weeks ago | Simply Wall St
Does CDW (NASDAQ:CDW) Have A Healthy Balance Sheet?Valuation
Is CDW undervalued compared to its fair value and its price relative to the market?
19.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDW ($93.75) is trading above our estimate of fair value ($82.95)
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 (18.5x) compared to the Electronic industry average (14.4x).
PE vs Market: CDW is poor value based on its PE Ratio (18.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: CDW is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: CDW is overvalued based on its PB Ratio (14x) compared to the US Electronic industry average (1.5x).
Next Steps
Future Growth
How is CDW forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
5.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDW's forecast earnings growth (5.2% per year) is above the savings rate (1.7%).
Earnings vs Market: CDW's earnings (5.2% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: CDW's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDW's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: CDW's revenue (3.9% 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 (119.5%).
Next Steps
Past Performance
How has CDW performed over the past 5 years?
19.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDW has high quality earnings.
Growing Profit Margin: CDW's current net profit margins (4.1%) are higher than last year (4%).
Past Earnings Growth Analysis
Earnings Trend: CDW's earnings have grown by 19.8% per year over the past 5 years.
Accelerating Growth: CDW's earnings growth over the past year (14.6%) is below its 5-year average (19.8% per year).
Earnings vs Industry: CDW earnings growth over the past year (14.6%) exceeded the Electronic industry 3.2%.
Return on Equity
High ROE: Whilst CDW's Return on Equity (76.73%) 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 ($4.3B) exceed its short term liabilities ($3.5B).
Long Term Liabilities: CDW's short term assets ($4.3B) exceed its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: CDW's debt to equity ratio (390.2%) is considered high.
Reducing Debt: CDW's debt to equity ratio has increased from 373.4% to 390.2% over the past 5 years.
Debt Coverage: CDW's debt is well covered by operating cash flow (27.4%).
Interest Coverage: CDW's interest payments on its debt are well covered by EBIT (7.1x 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 1.2x debt).
Next Steps
Dividend
What is CDW's current dividend yield, its reliability and sustainability?
1.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CDW's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: CDW's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (5.49%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.9%), 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 (22.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Chris Leahy (54yo)
1.17s
Tenure
US$2,754,362
Compensation
Ms. Christine A. Leahy, also known as Chris, has been Chief Executive Officer at CDW LLC since January, 2019. She has been President, Chief Executive Officer and Director of CDW Corporation since January 1 ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD2.75M) is below average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$2.75m | 0.057% $7.8m | |
| Senior VP & CFO | 3.83yrs | US$1.73m | 0.027% $3.7m | |
| Chief Commercial & Operating Officer | 1.17yrs | US$2.05m | 0.036% $5.0m | |
| Senior Vice President of Small Business Sales & eCommerce | 10.25yrs | US$1.92m | 0.10% $14.2m | |
| Chief Accounting Officer | 2.83yrs | no data | 0.0046% $630.9k | |
| Senior VP of Operations & Chief Information Officer | 18.17yrs | US$1.25m | 0.057% $7.9m | |
| Vice President of Investor Relations | 1.25yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 2.42yrs | no data | 0.014% $2.0m | |
| Vice President of Corporate Communications & Reputation | no data | no data | no data |
2.6yrs
Average Tenure
52.5yo
Average Age
Experienced Management: CDW's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$2.75m | 0.057% $7.8m | |
| Independent Director | 9.17yrs | US$225.00k | 0.013% $1.8m | |
| Independent Non-Executive Chairman & Lead Director | 0.17yr | US$225.00k | no data | |
| Independent Director | 8.83yrs | US$225.00k | 0.0049% $679.3k | |
| Chairman Emeritus | no data | US$170.41k | no data | |
| Independent Director | 10.67yrs | US$235.00k | 0.0087% $1.2m | |
| Independent Director | 10.67yrs | US$240.00k | no data | |
| Independent Director | 4.58yrs | US$225.00k | 0.0077% $1.1m | |
| Independent Director | 5yrs | US$225.00k | 0.0025% $347.3k | |
| Independent Director | 4yrs | US$245.00k | no data |
5.0yrs
Average Tenure
65yo
Average Age
Experienced Board: CDW's board of directors are considered experienced (5 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$13.836b
- Shares outstanding: 142.77m
- 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 through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration. Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage products, printers, and servers; and software products include application suites, security, virtualization, operating systems, and network management. The company also provides warranties, managed services, and consulting design and implementation services. CDW Corporation was founded in 1984 and is based in Lincolnshire, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:15 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.