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CDW

CDWNasdaqGS:CDW Stock Report

Market Cap

US$25.7b

7D

-7.5%

1Y

40.9%

Updated

01 Dec, 2021

Data

Company Financials +
CDW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends2/6

CDW Stock 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

TD SYNNEX

NYSE:SNX

US$9.9b

Arrow Electronics

NYSE:ARW

US$8.5b

Insight Enterprises

NasdaqGS:NSIT

US$3.4b

ePlus

NasdaqGS:PLUS

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for CDW
Historical stock prices
Current Share PriceUS$184.81
52 Week HighUS$203.82
52 Week LowUS$125.46
Beta1.11
1 Month Change-1.51%
3 Month Change-9.08%
1 Year Change40.85%
3 Year Change96.92%
5 Year Change239.97%
Change since IPO906.04%

Recent News & Updates

Nov 16
Is CDW (NASDAQ:CDW) Using Too Much Debt?

Is CDW (NASDAQ:CDW) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 01
Investors Should Be Encouraged By CDW's (NASDAQ:CDW) Returns On Capital

Investors Should Be Encouraged By CDW's (NASDAQ:CDW) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

CDWUS ElectronicUS Market
7D-7.5%-4.9%-4.9%
1Y40.9%22.0%17.8%

Return vs Industry: CDW exceeded the US Electronic industry which returned 23.8% over the past year.

Return vs Market: CDW exceeded the US Market which returned 20% over the past year.

Price Volatility

Is CDW's price volatile compared to industry and market?
CDW volatility
CDW Average Weekly Movement3.5%
Electronic Industry Average Movement6.9%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
198411,098Chris Leahyhttps://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

How do CDW's earnings and revenue compare to its market cap?
CDW fundamental statistics
Market CapUS$25.70b
Earnings (TTM)US$1.01b
Revenue (TTM)US$20.24b

24.8x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CDW income statement (TTM)
RevenueUS$20.24b
Cost of RevenueUS$16.77b
Gross ProfitUS$3.47b
ExpensesUS$2.46b
EarningsUS$1.01b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.45
Gross Margin17.16%
Net Profit Margin5.00%
Debt/Equity Ratio526.4%

How did CDW perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

24.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDW ($184.81) is trading above our estimate of fair value ($129.56)

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 (24.8x) compared to the US Electronic industry average (16.9x).

PE vs Market: CDW is poor value based on its PE Ratio (24.8x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: CDW is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: CDW is overvalued based on its PB Ratio (30x) compared to the US Electronic industry average (2.5x).


Future Growth

How is CDW forecast to perform in the next 1 to 3 years based on estimates from 9 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 (2%).

Earnings vs Market: CDW's earnings (5.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CDW's revenue (7.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CDW's revenue (7.7% 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 (111.9%).


Past Performance

How has CDW performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDW has high quality earnings.

Growing Profit Margin: CDW's current net profit margins (5%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: CDW's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: CDW's earnings growth over the past year (37.5%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: CDW earnings growth over the past year (37.5%) underperformed the Electronic industry 52.7%.


Return on Equity

High ROE: Whilst CDW's Return on Equity (120.86%) 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 ($5.3B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: CDW's short term assets ($5.3B) exceed its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: CDW's net debt to equity ratio (497.1%) is considered high.

Reducing Debt: CDW's debt to equity ratio has increased from 375.1% to 526.4% over the past 5 years.

Debt Coverage: CDW's debt is well covered by operating cash flow (27.5%).

Interest Coverage: CDW's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDW's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CDW's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (22.2%), 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 (23.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Chris Leahy (56 yo)

2.83yrs

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 ($USD6.34M) is below average for companies of similar size in the US market ($USD11.14M).

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 (2.8 years average tenure).


Board Members

Experienced Board: CDW's board of directors are considered experienced (5.8 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.


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$25.701b
  • Shares outstanding: 135.72m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:56
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
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.