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CDW

Nasdaq:CDW
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CDW
Nasdaq
$16B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. The last earnings update was 18 days ago. More info.


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CDW Share Price and Events
7 Day Returns
-2.7%
NasdaqGS:CDW
-1.3%
US Electronic
-1%
US Market
1 Year Returns
29.9%
NasdaqGS:CDW
-6.8%
US Electronic
-0.4%
US Market
CDW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CDW (CDW) -2.7% -0.7% 7.1% 29.9% 148.9% 237.2%
US Electronic -1.3% -4.9% -1.3% -6.8% 39.2% 44%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • CDW outperformed the Electronic industry which returned -6.8% over the past year.
  • CDW outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
CDW
Industry
5yr Volatility vs Market
Related Companies

CDW Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CDW to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CDW.

NasdaqGS:CDW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CDW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.116 (1 + (1- 21%) (24.15%))
1.22
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.22 * 5.96%)
10%

Discounted Cash Flow Calculation for NasdaqGS:CDW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CDW is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CDW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10%)
2020 858.33 Analyst x3 780.29
2021 889.50 Analyst x2 735.09
2022 901.77 Est @ 1.38% 677.47
2023 917.86 Est @ 1.78% 626.85
2024 936.84 Est @ 2.07% 581.64
2025 958.07 Est @ 2.27% 540.74
2026 981.12 Est @ 2.41% 503.39
2027 1,005.68 Est @ 2.5% 469.07
2028 1,031.53 Est @ 2.57% 437.38
2029 1,058.54 Est @ 2.62% 408.03
Present value of next 10 years cash flows $5,759.95
NasdaqGS:CDW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,058.54 × (1 + 2.73%) ÷ (10% – 2.73%)
$14,953.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,953.02 ÷ (1 + 10%)10
$5,763.78
NasdaqGS:CDW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,759.95 + $5,763.78
$11,523.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,523.72 / 144.71
$79.63
NasdaqGS:CDW Discount to Share Price
Calculation Result
Value per share (USD) From above. $79.63
Current discount Discount to share price of $111.69
= -1 x ($111.69 - $79.63) / $79.63
-40.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CDW is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CDW's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CDW's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CDW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $4.68
NasdaqGS:CDW Share Price ** NasdaqGS (2019-08-16) in USD $111.69
United States of America Electronic Industry PE Ratio Median Figure of 86 Publicly-Listed Electronic Companies 18.35x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CDW.

NasdaqGS:CDW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CDW Share Price ÷ EPS (both in USD)

= 111.69 ÷ 4.68

23.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does CDW's expected growth come at a high price?
Raw Data
NasdaqGS:CDW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
6.3%per year
United States of America Electronic Industry PEG Ratio Median Figure of 58 Publicly-Listed Electronic Companies 1.1x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:CDW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.89x ÷ 6.3%

3.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CDW is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CDW's assets?
Raw Data
NasdaqGS:CDW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $6.46
NasdaqGS:CDW Share Price * NasdaqGS (2019-08-16) in USD $111.69
United States of America Electronic Industry PB Ratio Median Figure of 142 Publicly-Listed Electronic Companies 2.01x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:CDW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CDW Share Price ÷ Book Value per Share (both in USD)

= 111.69 ÷ 6.46

17.3x

* Primary Listing of CDW.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CDW is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess CDW's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. CDW has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CDW Future Performance

 How is CDW expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CDW expected to grow at an attractive rate?
  • CDW's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CDW's earnings growth is positive but not above the United States of America market average.
  • CDW's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CDW Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CDW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 6.3%
NasdaqGS:CDW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 5.4%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 19.8%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CDW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CDW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 19,537 1,003 803 3
2020-12-31 18,595 956 761 11
2019-12-31 17,599 903 711 11
NasdaqGS:CDW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 17,036 988 693
2019-03-31 16,592 936 669
2018-12-31 16,241 906 643
2018-09-30 16,276 941 678
2018-06-30 15,478 734 624
2018-03-31 15,183 630 592
2017-12-31 14,833 778 523
2017-09-30 14,573 544 432
2017-06-30 14,348 667 428
2017-03-31 14,121 546 405
2016-12-31 13,673 604 425
2016-09-30 13,908 482 411

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CDW's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
  • CDW's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CDW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from CDW Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CDW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.81 6.02 5.59 2.00
2020-12-31 5.28 5.46 5.03 7.00
2019-12-31 4.81 4.90 4.69 7.00
NasdaqGS:CDW Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 4.68
2019-03-31 4.47
2018-12-31 4.26
2018-09-30 4.47
2018-06-30 4.09
2018-03-31 3.85
2017-12-31 3.37
2017-09-30 2.74
2017-06-30 2.69
2017-03-31 2.50
2016-12-31 2.60
2016-09-30 2.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CDW is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess CDW's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CDW has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CDW Past Performance

  How has CDW performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CDW's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 51.2%).
Earnings and Revenue History
CDW's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CDW Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CDW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 17,035.80 692.50 1,806.40
2019-03-31 16,592.00 668.90 1,763.00
2018-12-31 16,240.50 643.00 1,719.60
2018-09-30 16,276.40 678.40 1,661.60
2018-06-30 15,477.80 624.10 1,620.80
2018-03-31 15,183.30 591.90 1,600.70
2017-12-31 14,832.90 523.10 1,583.70
2017-09-30 14,573.20 431.50 1,571.60
2017-06-30 14,348.20 428.10 1,550.30
2017-03-31 14,121.20 404.80 1,527.30
2016-12-31 13,672.70 425.10 1,508.30
2016-09-30 13,907.90 410.50 1,495.00
2016-06-30 13,700.80 435.50 1,480.80
2016-03-31 13,350.20 426.20 1,422.40
2015-12-31 12,988.70 403.10 1,373.80
2015-09-30 12,620.40 365.60 1,323.70
2015-06-30 12,385.40 270.30 1,283.70
2015-03-31 12,177.40 248.70 1,263.80
2014-12-31 12,074.50 244.90 1,248.30
2014-09-30 11,737.70 253.10 1,227.00
2014-06-30 11,335.90 195.30 1,280.30
2014-03-31 11,009.20 155.40 1,269.60
2013-12-31 10,768.60 132.80 1,251.70
2013-09-30 10,656.30 106.10 1,246.00
2013-06-30 10,415.30 146.30 1,163.10
2013-03-31 10,220.70 136.40 1,159.90
2012-12-31 10,128.20 119.00 1,154.70
2012-09-30 10,006.50 104.70 1,169.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • CDW used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • CDW has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CDW's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CDW has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CDW Health

 How is CDW's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CDW's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of CDW's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CDW Company Filings, last reported 1 month ago.

NasdaqGS:CDW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 936.10 3,744.50 194.50
2019-03-31 927.30 3,783.40 285.00
2018-12-31 975.20 3,637.90 205.80
2018-09-30 1,160.70 3,627.00 255.10
2018-06-30 1,068.90 3,627.90 100.70
2018-03-31 996.90 3,759.20 221.00
2017-12-31 985.60 3,733.50 144.20
2017-09-30 806.50 3,971.20 97.90
2017-06-30 849.10 3,792.70 79.00
2017-03-31 907.30 3,725.50 251.70
2016-12-31 1,045.50 3,814.80 263.70
2016-09-30 990.50 3,719.10 118.30
2016-06-30 1,013.40 3,750.30 129.40
2016-03-31 1,039.90 3,624.80 248.20
2015-12-31 1,095.90 3,699.30 37.60
2015-09-30 1,075.70 3,622.50 97.50
2015-06-30 995.80 3,542.90 335.70
2015-03-31 975.50 3,496.00 447.40
2014-12-31 936.50 3,498.10 344.50
2014-09-30 894.00 3,461.40 357.80
2014-06-30 844.80 3,437.80 227.60
2014-03-31 754.80 3,422.60 306.70
2013-12-31 711.70 3,507.80 188.10
2013-09-30 659.80 3,635.30 350.20
2013-06-30 209.00 4,006.90 179.30
2013-03-31 163.80 3,933.70 147.10
2012-12-31 136.50 4,020.20 37.90
2012-09-30 98.20 4,105.30 193.00
  • 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).
X
Financial health checks
We assess CDW's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CDW has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CDW Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.06%
Current annual income from CDW dividends. Estimated to be 1.26% next year.
If you bought $2,000 of CDW shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CDW's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • CDW's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Upcoming dividend payment

Purchase CDW before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CDW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CDW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.60 3.00
2020-12-31 1.46 5.00
2019-12-31 1.24 5.00
NasdaqGS:CDW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-31 1.180 1.051
2019-05-01 1.180 1.093
2019-02-07 1.180 1.203
2018-10-31 1.180 1.387
2018-08-02 0.840 0.978
2018-02-07 0.840 1.093
2017-11-01 0.840 1.192
2017-08-04 0.640 0.992
2017-08-03 0.640 1.003
2017-02-07 0.640 1.065
2016-11-03 0.640 1.245
2016-11-02 0.640 1.457
2016-08-03 0.430 0.957
2016-05-05 0.430 1.033
2016-05-04 0.430 1.060
2016-02-25 0.430 1.051
2016-02-09 0.430 1.168
2015-11-06 0.430 1.046
2015-11-04 0.430 0.950
2015-08-07 0.270 0.656
2015-08-03 0.270 0.690
2015-02-10 0.270 0.735
2014-11-12 0.270 0.779
2014-11-06 0.270 0.829
2014-07-31 0.170 0.549
2014-05-08 0.170 0.555
2014-02-13 0.170 0.638
2013-11-01 0.170 0.742

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of CDW's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess CDW's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CDW afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CDW has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CDW Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Leahy
COMPENSATION $2,754,362
AGE 54
TENURE AS CEO 0.6 years
CEO Bio

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, 2019. Ms. Leahy served as Chief Revenue Officer of CDW Corporation since July 20, 2017 until December 2018. Ms. Leahy served as Senior Vice President of International at CDW Corporation since May 2016 until July 20, 2017 and its Corporate Secretary and General Counsel from January 2007 until July 20, 2017. She is responsible for CDW’s international growth platform, including CDW Canada and Kelway, CDW’s U.K.-based technology solutions provider with locations in Europe, the Middle East, Africa and Asia. She leads all legal strategy and implementation. Ms. Leahy is responsible for CDW's legal, corporate governance and compliance functions. She is a Founder and sponsor of the Women-to-Women Network at CDW, which focuses on leadership development. She served as Vice President at CDW Corporation from January 2002 to January 2007. She served as a Corporate Partner in the Chicago office of Sidley Austin LLP (Sidley Austin Brown & Wood), where she specialized in corporate governance, securities law, mergers and acquisitions and strategic counseling. She joined CDW in 2002 as first in-house counsel. She is a member of the American, Chicago and Washington D.C. Bar Associations. She completed the Chief Executive Officer Perspective Program at Kellogg School of Management at Northwestern University as well as the Women's Director Development Program at Kellogg. She is a member of the Board of Trustees of Children’s Home + Aid. She is also a member of the Economic Club of Chicago and The Chicago Network. Ms. Leahy holds undergraduate degree from Brown University in 1986 and her J.D. from Boston College Law School in 1991.

CEO Compensation
  • Chris's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Chris's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CDW management team in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the CDW management team is less than 2 years, this suggests a new team.
Management Team

Tom Richards

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
64
TENURE
0.6 yrs

Chris Leahy

TITLE
President
COMPENSATION
$3M
AGE
54
TENURE
0.6 yrs

Collin Kebo

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
51
TENURE
3.3 yrs

Chris Corley

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
51
TENURE
0.6 yrs

Doug Eckrote

TITLE
Senior Vice President of Small Business Sales & eCommerce
COMPENSATION
$2M
AGE
54
TENURE
9.8 yrs

Neil Fairfield

TITLE
Chief Accounting Officer
TENURE
2.3 yrs

Jonathan Stevens

TITLE
Senior VP of Operations & Chief Information Officer
COMPENSATION
$1M
AGE
49
TENURE
17.6 yrs

Beth Coronelli

TITLE
Vice President of Investor Relations
TENURE
0.8 yrs

Rick Kulevich

TITLE
Senior VP
AGE
53
TENURE
1.8 yrs

Sara Granack

TITLE
Vice President of Corporate Communications & Reputation
Board of Directors Tenure

Average tenure and age of the CDW board of directors in years:

8.4
Average Tenure
62.5
Average Age
  • The tenure for the CDW board of directors is about average.
Board of Directors

Chris Leahy

TITLE
President
COMPENSATION
$3M
AGE
54
TENURE
0.6 yrs

Michael Krasny

TITLE
Chairman Emeritus
COMPENSATION
$170K
AGE
65

Tom Richards

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
64
TENURE
6.6 yrs

Steve Alesio

TITLE
Independent Director
COMPENSATION
$240K
AGE
65
TENURE
10.1 yrs

David Nelms

TITLE
Lead Director
COMPENSATION
$225K
AGE
58

Virginia Addicott

TITLE
Independent Director
COMPENSATION
$245K
AGE
55
TENURE
3.4 yrs

Benjamin Chereskin

TITLE
Independent Director
COMPENSATION
$225K
AGE
60
TENURE
11.8 yrs

Barry Allen

TITLE
Director
COMPENSATION
$235K
AGE
70
TENURE
10.1 yrs

Donna Zarcone

TITLE
Independent Director
COMPENSATION
$225K
AGE
61
TENURE
8.3 yrs

Paul Finnegan

TITLE
Independent Director
COMPENSATION
$225K
AGE
66
TENURE
8.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Sell Neil Fairfield Individual 04. Mar 19 04. Mar 19 -600 $95.01 $-57,006
06. Mar 19 Sell Jill Billhorn Individual 04. Mar 19 04. Mar 19 -1,468 $95.00 $-139,460
12. Feb 19 Sell Steven Alesio Individual 08. Feb 19 11. Feb 19 -20,013 $91.00 $-1,794,418
X
Management checks
We assess CDW's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CDW has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CDW News

Simply Wall St News

CDW (NASDAQ:CDW) Shareholders Have Enjoyed An Impressive 272% Share Price Gain

Over half a decade, CDW managed to grow its earnings per share at 36% a year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … A Different Perspective It's nice to see that CDW shareholders have received a total shareholder return of 39% over the last year.

Simply Wall St -

We Think CDW (NASDAQ:CDW) Can Stay On Top Of Its Debt

and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … Our View Happily, CDW's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt.

Simply Wall St -

CDW Corporation (NASDAQ:CDW) Earns A Nice Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CDW: 0.23 = US$1.0b ÷ (US$7.7b - US$3.2b) (Based on the trailing twelve months to March 2019.) So, CDW has an ROCE of 23%.

Simply Wall St -

Who Has Been Selling CDW Corporation (NASDAQ:CDW) Shares?

So we'll take a look at whether insiders have been buying or selling shares in CDW Corporation (NASDAQ:CDW). … Insiders at CDW Have Sold Stock Recently The last quarter saw substantial insider selling of CDW shares. … While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company.

Simply Wall St -

How Do Analysts See CDW Corporation (NASDAQ:CDW) Performing Over The Next Year?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … As CDW Corporation (NASDAQ:CDW) released its earnings announcement on 31 March 2019,

Simply Wall St -

Does CDW (NASDAQ:CDW) Deserve A Spot On Your Watchlist?

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … CDW maintained stable EBIT margins over the last year, all while growing revenue 9.5% to US$16b. … In the chart below, you can see how the company has grown earnings, and revenue, over time.

Simply Wall St -

Should You Be Impressed By CDW Corporation's (NASDAQ:CDW) ROE?

Our data shows CDW has a return on equity of 66% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.66 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Shareholders Are Thrilled That The CDW (NASDAQ:CDW) Share Price Increased 269%

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, CDW achieved compound earnings per share (EPS) growth of 38% per year. … The EPS growth is more impressive than the yearly share price gain of 30% over the same period.

Simply Wall St -

Know This Before Buying CDW Corporation (NASDAQ:CDW) For Its Dividend

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, CDW Corporation (NASDAQ:CDW) has paid a dividend to shareholders. … 5 checks you should use to assess a dividend stock

Simply Wall St -

CDW Corporation (NASDAQ:CDW) Is Employing Capital Very Effectively

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed

Simply Wall St -

CDW Company Info

Description

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.

Details
Name: CDW Corporation
CDW
Exchange: NasdaqGS
Founded: 1984
$16,163,169,876
144,714,566
Website: http://www.cdw.com
Address: CDW Corporation
75 Tri-State International,
Lincolnshire,
Illinois, 60069,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CDW Common Shares Nasdaq Global Select US USD 27. Jun 2013
DB CDW Common Shares Deutsche Boerse AG DE EUR 27. Jun 2013
Number of employees
Current staff
Staff numbers
9,783
CDW employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 00:54
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/13
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.