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

0.3%

CDW

1.1%

US Electronic

1.3%

US Market


1 Year Return

46.0%

CDW

10.2%

US Electronic

5.9%

US Market

Return vs Industry: CDW exceeded the US Electronic industry which returned 10.2% over the past year.

Return vs Market: CDW exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

CDWIndustryMarket
7 Day0.3%1.1%1.3%
30 Day10.4%-2.5%-1.9%
90 Day8.7%0.3%-1.8%
1 Year47.8%46.0%11.3%10.2%8.3%5.9%
3 Year188.2%178.5%52.5%48.2%45.6%36.2%
5 Year336.0%314.0%89.0%79.9%66.1%47.9%

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?

26.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CDW ($123.33) is trading above our estimate of fair value ($80.21)

Significantly Undervalued: 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 (26.4x) compared to the Electronic industry average (19x).

PE vs Market: CDW is poor value based on its PE Ratio (26.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 (19.1x) 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 (14.4% 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 (7.3% 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

High 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?

0.96%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CDW's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CDW's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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: 9.9yrs
    • 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$17.848b
  • 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 Analysis2019/10/15 00:22
End of Day Share Price2019/10/14 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.