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PC Connection

Nasdaq:CNXN
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNXN
Nasdaq
$971M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The last earnings update was 78 days ago. More info.


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CNXN Share Price and Events
7 Day Returns
3.3%
NasdaqGS:CNXN
0.5%
US Electronic
0.9%
US Market
1 Year Returns
38.2%
NasdaqGS:CNXN
14.4%
US Electronic
9.6%
US Market
CNXN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PC Connection (CNXN) 3.3% 2.7% 13.5% 38.2% 55.1% 78.3%
US Electronic 0.5% 9.2% 20.6% 14.4% 68.7% 70.9%
US Market 0.9% 4.6% 10.9% 9.6% 39% 47.2%
1 Year Return vs Industry and Market
  • CNXN outperformed the Electronic industry which returned 14.4% over the past year.
  • CNXN outperformed the Market in United States of America which returned 9.6% over the past year.
Price Volatility
CNXN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is PC Connection 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 PC Connection 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 PC Connection.

NasdaqGS:CNXN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
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:CNXN
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 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.07 (1 + (1- 21%) (0%))
1.047
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.047 * 5.96%)
8.97%

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

The calculations below outline how an intrinsic value for PC Connection 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.

NasdaqGS:CNXN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.97%)
2019 45.85 Analyst x1 42.07
2020 57.48 Analyst x1 48.40
2021 66.98 Est @ 16.54% 51.77
2022 75.29 Est @ 12.4% 53.39
2023 82.44 Est @ 9.5% 53.65
2024 88.60 Est @ 7.47% 52.91
2025 93.96 Est @ 6.05% 51.49
2026 98.70 Est @ 5.05% 49.64
2027 103.00 Est @ 4.36% 47.54
2028 106.98 Est @ 3.87% 45.31
Present value of next 10 years cash flows $496.18
NasdaqGS:CNXN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $106.98 × (1 + 2.73%) ÷ (8.97% – 2.73%)
$1,761.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,761.02 ÷ (1 + 8.97%)10
$745.86
NasdaqGS:CNXN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $496.18 + $745.86
$1,242.04
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,242.04 / 26.36
$47.13
NasdaqGS:CNXN Discount to Share Price
Calculation Result
Value per share (USD) From above. $47.13
Current discount Discount to share price of $36.86
= -1 x ($36.86 - $47.13) / $47.13
21.8%

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

Current Discount
Amount off the current price PC Connection is available for.
Intrinsic value
22%
Share price is $36.86 vs Future cash flow value of $47.13
Current Discount Checks
For PC Connection to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PC Connection's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PC Connection's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 PC Connection's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PC Connection's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CNXN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.42
NasdaqGS:CNXN Share Price ** NasdaqGS (2019-04-25) in USD $36.86
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 21.87x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.28x

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

** Primary Listing of PC Connection.

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

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

= 36.86 ÷ 2.42

15.25x

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

  • PC Connection is good value based on earnings compared to the US Electronic industry average.
  • PC Connection is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does PC Connection's expected growth come at a high price?
Raw Data
NasdaqGS:CNXN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
4.4%per year
United States of America Electronic Industry PEG Ratio Median Figure of 58 Publicly-Listed Electronic Companies 1.4x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.25x ÷ 4.4%

3.46x

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

  • PC Connection is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PC Connection's assets?
Raw Data
NasdaqGS:CNXN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $19.92
NasdaqGS:CNXN Share Price * NasdaqGS (2019-04-25) in USD $36.86
United States of America Electronic Industry PB Ratio Median Figure of 144 Publicly-Listed Electronic Companies 2.15x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NasdaqGS:CNXN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 36.86 ÷ 19.92

1.85x

* Primary Listing of PC Connection.

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

  • PC Connection is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess PC Connection'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. PC Connection has a total score of 4/6, 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.

Future Performance

 How is PC Connection expected to perform in the next 1 to 3 years based on estimates from 3 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
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PC Connection expected to grow at an attractive rate?
  • PC Connection's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PC Connection's earnings growth is positive but not above the United States of America market average.
  • PC Connection's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CNXN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CNXN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 4.4%
NasdaqGS:CNXN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3.8%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:CNXN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CNXN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,915 81 70 3
2019-12-31 2,809 68 65 3
NasdaqGS:CNXN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,699 87 65
2018-09-30 2,752 72 64
2018-06-30 2,823 71 63
2018-03-31 2,866 31 59
2017-12-31 2,912 19 55
2017-09-30 2,885 22 47
2017-06-30 2,864 7 48
2017-03-31 2,791 36 46
2016-12-31 2,693 34 48
2016-09-30 2,641 45 49
2016-06-30 2,614 31 48
2016-03-31 2,565 33 47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PC Connection's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • PC Connection's revenue is expected to grow by 3.8% 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:CNXN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from PC Connection Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CNXN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.66 2.86 2.50 3.00
2019-12-31 2.46 2.48 2.42 3.00
NasdaqGS:CNXN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.42
2018-09-30 2.39
2018-06-30 2.37
2018-03-31 2.19
2017-12-31 2.05
2017-09-30 1.76
2017-06-30 1.79
2017-03-31 1.75
2016-12-31 1.81
2016-09-30 1.83
2016-06-30 1.82
2016-03-31 1.79

*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.
  • PC Connection is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PC Connection'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.
PC Connection has a total score of 1/6, 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.

Past Performance

  How has PC Connection 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 PC Connection'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.
  • PC Connection's year on year earnings growth rate has been positive over the past 5 years.
  • PC Connection's 1-year earnings growth exceeds its 5-year average (17.7% vs 10.4%)
  • PC Connection's earnings growth has not exceeded the US Electronic industry average in the past year (17.7% vs 62.1%).
Earnings and Revenue History
PC Connection'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 PC Connection Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CNXN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,699.49 64.59 310.33
2018-09-30 2,752.24 64.02 309.05
2018-06-30 2,822.96 63.37 302.66
2018-03-31 2,866.18 58.73 297.95
2017-12-31 2,911.88 54.86 289.11
2017-09-30 2,885.16 47.13 291.44
2017-06-30 2,864.42 47.61 291.86
2017-03-31 2,790.79 46.48 287.91
2016-12-31 2,692.59 48.11 276.73
2016-09-30 2,641.37 48.73 273.51
2016-06-30 2,613.65 48.14 266.19
2016-03-31 2,565.11 47.31 256.90
2015-12-31 2,573.97 46.83 253.50
2015-09-30 2,520.42 45.16 247.84
2015-06-30 2,479.22 44.33 244.44
2015-03-31 2,484.84 44.13 246.07
2014-12-31 2,463.34 42.68 243.84
2014-09-30 2,411.15 40.58 247.00
2014-06-30 2,351.93 38.99 240.66
2014-03-31 2,275.98 36.72 232.49
2013-12-31 2,221.64 35.68 226.50
2013-09-30 2,199.31 34.71 215.22
2013-06-30 2,180.25 34.02 207.17
2013-03-31 2,165.53 33.69 207.84
2012-12-31 2,158.87 33.07 219.42
2012-09-30 2,155.79 31.63 212.25
2012-06-30 2,170.14 31.11 218.61

*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.
  • PC Connection has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PC Connection used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • PC Connection's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PC Connection'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.
PC Connection 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.

Health

 How is PC Connection'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 PC Connection's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PC Connection is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PC Connection's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PC Connection'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.
  • High level of physical assets or inventory.
  • PC Connection has no debt, it does not need to be covered by short term assets.
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 PC Connection Company Filings, last reported 3 months ago.

NasdaqGS:CNXN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 525.90 0.00 91.70
2018-09-30 523.24 0.00 102.24
2018-06-30 509.66 0.00 68.68
2018-03-31 491.96 0.86 70.97
2017-12-31 482.25 0.00 49.99
2017-09-30 469.92 0.00 62.34
2017-06-30 457.13 0.00 28.13
2017-03-31 442.74 0.00 65.76
2016-12-31 433.44 0.00 49.18
2016-09-30 428.77 0.00 66.88
2016-06-30 415.08 0.00 47.30
2016-03-31 401.80 0.00 90.98
2015-12-31 392.45 0.00 80.19
2015-09-30 388.67 0.00 76.87
2015-06-30 375.56 0.00 72.50
2015-03-31 362.87 0.00 79.88
2014-12-31 354.01 0.00 60.91
2014-09-30 351.78 0.00 66.43
2014-06-30 339.25 0.00 60.29
2014-03-31 327.14 0.00 64.88
2013-12-31 319.83 0.00 42.55
2013-09-30 319.79 0.19 77.18
2013-06-30 308.95 0.46 64.22
2013-03-31 299.08 0.73 58.53
2012-12-31 291.30 0.99 39.91
2012-09-30 298.48 1.24 53.53
2012-06-30 287.74 1.49 63.42
  • PC Connection has no debt.
  • PC Connection had no debt 5 years ago.
  • PC Connection has no debt, it does not need to be covered by operating cash flow.
  • PC Connection has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess PC Connection'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. PC Connection has a total score of 6/6, 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.

Dividends

 What is PC Connection'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
0.87%
Current annual income from PC Connection dividends.
If you bought $2,000 of PC Connection shares you are expected to receive $17 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?
  • PC Connection's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • PC Connection's dividend is below the markets top 25% of dividend payers in United States of America (3.61%).
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:CNXN 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 3 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NasdaqGS:CNXN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:CNXN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-17 0.320 0.919
2017-12-18 0.340 1.122
2016-12-20 0.340 1.255
2015-12-17 0.400 1.642
2014-11-17 0.400 1.720
2013-11-27 0.400 1.858
2012-11-13 0.380 2.552

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

  • Whilst dividend payments have been stable, PC Connection has been paying a dividend for less than 10 years.
  • PC Connection has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of PC Connection's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PC Connection has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess PC Connection'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 PC Connection afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PC Connection has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of PC Connection'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
Tim McGrath
COMPENSATION $1,648,275
AGE 59
TENURE AS CEO 7.7 years
CEO Bio

Mr. Timothy J. McGrath, also known as Tim, has been the Chief Executive Officer of PC Connection, Inc. since August 2011 and has been its President since May 2010. Mr. McGrath served as the President and Chief Operating Officer of PC Connection Inc. from May 1, 2010 to August 2011. He served as an Executive Vice President of PC Connection Enterprises at PC Connection, Inc. since May 2007 until May 1, 2010. Mr. McGrath served as an Executive Vice President of Enterprise Group of PC Connection Inc. since May 2007. Mr. McGrath served as Senior Vice President of PC Connection Enterprises of PC Connection Inc. from December 20, 2006 to May 2007. Mr. McGrath served as President of PC Connection Sales Corporation, a subsidiary of PC Connection Inc. from August 2005 to December 2006. Mr. McGrath served as Executive Vice President of Sales and Marketing of Insight North America of Insight Enterprises, Inc. since November 2002. From 1999 to 2002, he served as the Executive Vice President of Sales of Comark, a leading provider of IT products and services in the United States, which Insight Enterprises, Inc. acquired in 2002. Mr. McGrath has served as a Member of PC Connection, Inc.’s executive management team since he joined in 2005. At Insight, his responsibilities included overall operational accountability for their North American business sales division, including planning and directing all aspects of sales, marketing and account and division development. Mr. McGrath served as the President of Comark and was responsible for the direction of all international and domestic sales and marketing efforts. From 1989 to 1999, he was with Hewlett-Packard and has held a variety of other sales and sales management positions with various reseller organizations. Mr. McGrath received a Bachelor of Science degree in Business Administration from New Hampshire College and an M.B.A from Babson College in Wellesley, Massachusetts.

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year.
  • Tim's remuneration is about average for companies of similar size in United States of America.
Management Team

Pat Gallup

TITLE
Co-Founder
COMPENSATION
$622K
AGE
64

Tim McGrath

TITLE
President & CEO
COMPENSATION
$2M
AGE
59
TENURE
7.7 yrs

David Hall

TITLE
Co-Founder & Director
COMPENSATION
$175K
AGE
69

Tom Baker

TITLE
Senior VP
AGE
53
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the PC Connection board of directors in years:

9.8
Average Tenure
71
Average Age
  • The tenure for the PC Connection board of directors is about average.
Board of Directors

Pat Gallup

TITLE
Co-Founder
COMPENSATION
$622K
AGE
64
TENURE
24.6 yrs

Joseph Baute

TITLE
Vice Chairman
COMPENSATION
$100K
AGE
90
TENURE
6.7 yrs

David Hall

TITLE
Co-Founder & Director
COMPENSATION
$175K
AGE
69

Jack Ferguson

TITLE
Director
COMPENSATION
$100K
AGE
79
TENURE
2.9 yrs

Barbara Duckett

TITLE
Director
COMPENSATION
$95K
AGE
73
TENURE
9.8 yrs

David Beffa-Negrini

TITLE
Director
COMPENSATION
$75K
AGE
64
TENURE
24.6 yrs
Who owns this company?
Recent Insider Trading
  • PC Connection insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Sell Joseph Baute Individual 13. Aug 18 05. Mar 19 -25,160 $40.29 $-963,589
06. Mar 19 Sell David Beffa-Negrini Individual 05. Mar 19 05. Mar 19 -12,300 $40.14 $-493,722
20. Feb 19 Sell Jack Ferguson Individual 19. Feb 19 19. Feb 19 -3,000 $41.65 $-124,950
17. Sep 18 Sell Barbara Duckett Individual 14. Sep 18 14. Sep 18 -2,000 $41.46 $-82,920
14. Aug 18 Sell David Beffa-Negrini Individual 10. Aug 18 13. Aug 18 -6,523 $38.00 $-242,243
14. Jun 18 Sell David Beffa-Negrini Individual 13. Jun 18 13. Jun 18 -3,477 $32.00 $-111,264
08. May 18 Sell Barbara Duckett Individual 08. May 18 08. May 18 -2,000 $29.57 $-59,142
X
Management checks
We assess PC Connection'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. PC Connection 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.

News

Simply Wall St News

Need To Know: PC Connection, Inc. (NASDAQ:CNXN) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in PC Connection, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when the Vice Chairman, Joseph Baute, sold US$964k worth of shares at a price of US$40.29 per share.

Simply Wall St -

PC Connection, Inc. (NASDAQ:CNXN): Commentary On Fundamentals

(NASDAQ:CNXN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price.

Simply Wall St -

Does PC Connection, Inc. (NASDAQ:CNXN) Create Value For Shareholders?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Does Investing In PC Connection, Inc. (NASDAQ:CNXN) Impact The Volatility Of Your Portfolio?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

PC Connection Shareholders Have Enjoyed A 90% Share Price Gain

To wit, the PC Connection share price has climbed 90% in five years, easily topping the market return of 40% (ignoring dividends). … During five years of share price growth, PC Connection achieved compound earnings per share (EPS) growth of 12% per year. … Rather, the share price has approximately tracked EPS growth?

Simply Wall St -

Why We Like PC Connection, Inc.’s (NASDAQ:CNXN) 16% 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. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should You Worry About PC Connection, Inc.'s (NASDAQ:CNXN) CEO Pay Cheque?

First, this article will compare CEO compensation with compensation at similar sized companies. … This method should give us information to assess how appropriately the company pays the CEO. … How Does Tim McGrath's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Be Worried About Insider Transactions At PC Connection, Inc. (NASDAQ:CNXN)?

(NASDAQ:CNXN), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … PC Connection Insider Transactions Over The Last Year.

Simply Wall St -

Are PC Connection, Inc.'s (NASDAQ:CNXN) Interest Costs Too High?

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is CNXN right in choosing financial flexibility over lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

Simply Wall St -

At US$29.50, Is PC Connection, Inc. (NASDAQ:CNXN) Worth Looking At Closely?

received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $39.64 at one point, and dropping to the lows of $27.07. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether PC Connection's current trading price of $29.5 reflective of the actual value of the?

Simply Wall St -

Company Info

Description

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. It operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions segments. The company offers IT products, including computer systems, software and peripheral equipment, networking communications, and other products and accessories. It also provides services, such as design, configuration, and implementation of IT solutions. In addition, the company publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. It markets its products and services through its Websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. The company serves small to medium-sized businesses (SMBs) that include small office/home office customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales, and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.

Details
Name: PC Connection, Inc.
CNXN
Exchange: NasdaqGS
Founded: 1982
$971,487,541
26,356,146
Website: http://www.connection.com
Address: PC Connection, Inc.
730 Milford Road,
Merrimack,
New Hampshire, 03054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CNXN Common Stock Nasdaq Global Select US USD 03. Mar 1998
DB PCC Common Stock Deutsche Boerse AG DE EUR 03. Mar 1998
Number of employees
Current staff
Staff numbers
2,513
PC Connection employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 01:42
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
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.