NasdaqGS:CDW

Stock Analysis Report

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

0.5%

NasdaqGS:CDW

-0.8%

US Electronic

-1.6%

US Market


1 Year Return

29.3%

NasdaqGS:CDW

-8.8%

US Electronic

-3.0%

US Market

CDW outperformed the Electronic industry which returned -8.8% over the past year.

CDW outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

CDWIndustryMarket
7 Day0.5%-0.8%-1.6%
30 Day-1.9%-7.6%-5.7%
90 Day8.8%0.6%0.2%
1 Year30.9%29.3%-7.9%-8.8%-0.8%-3.0%
3 Year162.5%153.7%42.1%38.1%38.1%29.1%
5 Year257.7%239.7%48.5%41.3%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

24x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CDW's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CDW's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CDW is overvalued based on earnings compared to the US Electronic industry average.

CDW is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CDW is poor value based on expected growth next year.


Price Based on Value of Assets

CDW is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

How is CDW expected 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 Estimates


Future Annual Growth Analysis

CDW's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

CDW's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

CDW's revenue growth is positive but not above the United States of America market average.

CDW's earnings growth is positive but not above the United States of America market average.

CDW's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CDW is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

CDW has delivered over 20% year on year earnings growth in the past 5 years.

CDW's 1-year earnings growth is less than its 5-year average (11% vs 21.7%)

CDW's earnings growth has not exceeded the US Electronic industry average in the past year (11% vs 49.8%).


Return on Equity

Whilst CDW made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

CDW used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

CDW has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CDW's financial position?


Financial Position Analysis

CDW is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CDW's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CDW's level of debt (400%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (406.7% vs 400% today).

Debt is well covered by operating cash flow (26.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).


Balance Sheet

Low level of unsold assets.

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?

1.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CDW's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

CDW's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, CDW has been paying a dividend for less than 10 years.

Dividend payments have increased, but CDW only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).


Next Steps

Management

What is the CEO of CDW's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Chris Leahy (54yo)

0.6yrs

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

Chris's remuneration is lower than average for companies of similar size in United States of America.

Chris's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

The average tenure for the CDW management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.4yrs

Average Tenure

62.5yo

Average Age

The tenure for the CDW board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$57,00606 Mar 19
Neil Fairfield
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares600
Max PriceUS$95.01
SellUS$139,46006 Mar 19
Jill Billhorn
EntityIndividual
Shares1,468
Max PriceUS$95.00
SellUS$1,794,41812 Feb 19
Steven Alesio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,013
Max PriceUS$91.00

Ownership Breakdown


Management Team

  • Doug Eckrote (54yo)

    Senior Vice President of Small Business Sales & eCommerce

    • Tenure: 9.8yrs
    • Compensation: US$1.92m
  • Jonathan Stevens (49yo)

    Senior VP of Operations & Chief Information Officer

    • Tenure: 17.6yrs
    • Compensation: US$1.25m
  • Chris Leahy (54yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$2.75m
  • Chris Corley (51yo)

    Chief Operating Officer

    • Tenure: 0.6yrs
    • Compensation: US$2.05m
  • Tom Richards (64yo)

    Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: US$9.06m
  • Collin Kebo (51yo)

    Senior VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$1.73m
  • Neil Fairfield

    Chief Accounting Officer

    • Tenure: 2.3yrs
  • Sara Granack

    Vice President of Corporate Communications & Reputation

    • Tenure: 0.0yrs
  • Rick Kulevich (53yo)

    Senior VP

    • Tenure: 1.8yrs
  • Beth Coronelli

    Vice President of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Paul Finnegan (66yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$225.00k
  • Benjamin Chereskin (60yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$225.00k
  • David Nelms (58yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$225.00k
  • Donna Zarcone (61yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$225.00k
  • Michael Krasny (65yo)

    Chairman Emeritus

    • Tenure: 0.0yrs
    • Compensation: US$170.41k
  • Barry Allen (70yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: US$235.00k
  • Steve Alesio (65yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$240.00k
  • Chris Leahy (54yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$2.75m
  • Tom Richards (64yo)

    Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: US$9.06m
  • Virginia Addicott (55yo)

    Independent Director

    • Tenure: 3.4yrs
    • 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$16.241b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDWNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2013
CDWDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:32
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.