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PC Connection NasdaqGS:CNXN Stock Report

Last Price

US$69.00

Market Cap

US$1.9b

7D

-4.6%

1Y

1.1%

Updated

20 Dec, 2024

Data

Company Financials +

PC Connection, Inc.

NasdaqGS:CNXN Stock Report

Market Cap: US$1.9b

CNXN Stock Overview

Provides various information technology (IT) solutions worldwide. More details

CNXN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

Rewards

Trading at 15.9% below our estimate of its fair value

Earnings are forecast to grow 8.34% per year

Earnings grew by 15.1% over the past year

Risk Analysis

Significant insider selling over the past 3 months


My Notes

Capture your thoughts, links and company narrative

Community Narratives

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Narratives bring a range of perspectives from our community.

WA
Analyst Price Target
Consensus Narrative from 1 Analyst

AI And Digital Transformation Investments Will Drive Future Customer Engagement In Healthcare And Retail

Key Takeaways Investments in AI and digital transformation could drive increased revenues through higher customer engagement and adoption of AI solutions. Strategic focus on healthcare and retail verticals and operational efficiencies may boost revenue growth and enhance net margins.
View narrative
US$76.00
FV
9.2% undervalued intrinsic discount
5.79%
Revenue growth p.a.
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2 days ago author updated this narrative

PC Connection, Inc. Competitors

ePlus

NasdaqGS:PLUS

US$2.0b

ScanSource

NasdaqGS:SCSC

US$1.2b

Insight Enterprises

NasdaqGS:NSIT

US$5.0b

Ingram Micro Holding

NYSE:INGM

US$4.6b

Price History & Performance

Summary of share price highs, lows and changes for PC Connection
Historical stock prices
Current Share PriceUS$69.00
52 Week HighUS$77.19
52 Week LowUS$57.47
Beta0.67
1 Month Change-1.96%
3 Month Change-9.09%
1 Year Change1.10%
3 Year Change56.32%
5 Year Change35.27%
Change since IPO387.06%

Recent News & Updates

With EPS Growth And More, PC Connection (NASDAQ:CNXN) Makes An Interesting Case

Dec 09
With EPS Growth And More, PC Connection (NASDAQ:CNXN) Makes An Interesting Case

Calculating The Fair Value Of PC Connection, Inc. (NASDAQ:CNXN)

Nov 23
Calculating The Fair Value Of PC Connection, Inc. (NASDAQ:CNXN)

Recent updates

With EPS Growth And More, PC Connection (NASDAQ:CNXN) Makes An Interesting Case

Dec 09
With EPS Growth And More, PC Connection (NASDAQ:CNXN) Makes An Interesting Case

Calculating The Fair Value Of PC Connection, Inc. (NASDAQ:CNXN)

Nov 23
Calculating The Fair Value Of PC Connection, Inc. (NASDAQ:CNXN)

Some Shareholders Feeling Restless Over PC Connection, Inc.'s (NASDAQ:CNXN) P/E Ratio

Oct 04
Some Shareholders Feeling Restless Over PC Connection, Inc.'s (NASDAQ:CNXN) P/E Ratio

PC Connection (NASDAQ:CNXN) Will Be Hoping To Turn Its Returns On Capital Around

Sep 14
PC Connection (NASDAQ:CNXN) Will Be Hoping To Turn Its Returns On Capital Around

PC Connection: AI Could Help, But I Need Proof (Rating Downgrade)

Aug 30

PC Connection (NASDAQ:CNXN) Is Reinvesting At Lower Rates Of Return

Jun 12
PC Connection (NASDAQ:CNXN) Is Reinvesting At Lower Rates Of Return

There's Reason For Concern Over PC Connection, Inc.'s (NASDAQ:CNXN) Price

May 22
There's Reason For Concern Over PC Connection, Inc.'s (NASDAQ:CNXN) Price

Some Investors May Be Willing To Look Past PC Connection's (NASDAQ:CNXN) Soft Earnings

Feb 21
Some Investors May Be Willing To Look Past PC Connection's (NASDAQ:CNXN) Soft Earnings

Be Wary Of PC Connection (NASDAQ:CNXN) And Its Returns On Capital

Feb 16
Be Wary Of PC Connection (NASDAQ:CNXN) And Its Returns On Capital

PC Connection, Inc.'s (NASDAQ:CNXN) Price In Tune With Earnings

Jan 05
PC Connection, Inc.'s (NASDAQ:CNXN) Price In Tune With Earnings

PC Connection (NASDAQ:CNXN) Will Be Hoping To Turn Its Returns On Capital Around

Nov 03
PC Connection (NASDAQ:CNXN) Will Be Hoping To Turn Its Returns On Capital Around

PC Connection (NASDAQ:CNXN) Is Reinvesting At Lower Rates Of Return

Aug 04
PC Connection (NASDAQ:CNXN) Is Reinvesting At Lower Rates Of Return

Here's Why PC Connection (NASDAQ:CNXN) Has Caught The Eye Of Investors

Apr 01
Here's Why PC Connection (NASDAQ:CNXN) Has Caught The Eye Of Investors

Here's What To Make Of PC Connection's (NASDAQ:CNXN) Decelerating Rates Of Return

Mar 14
Here's What To Make Of PC Connection's (NASDAQ:CNXN) Decelerating Rates Of Return

Calculating The Intrinsic Value Of PC Connection, Inc. (NASDAQ:CNXN)

Feb 03
Calculating The Intrinsic Value Of PC Connection, Inc. (NASDAQ:CNXN)

We Ran A Stock Scan For Earnings Growth And PC Connection (NASDAQ:CNXN) Passed With Ease

Nov 21
We Ran A Stock Scan For Earnings Growth And PC Connection (NASDAQ:CNXN) Passed With Ease

Slowing Rates Of Return At PC Connection (NASDAQ:CNXN) Leave Little Room For Excitement

Aug 12
Slowing Rates Of Return At PC Connection (NASDAQ:CNXN) Leave Little Room For Excitement

PC Connection, Inc. (NASDAQ:CNXN) Shares Could Be 33% Below Their Intrinsic Value Estimate

Apr 24
PC Connection, Inc. (NASDAQ:CNXN) Shares Could Be 33% Below Their Intrinsic Value Estimate

Shareholder Returns

CNXNUS ElectronicUS Market
7D-4.6%-4.3%-3.5%
1Y1.1%17.5%22.1%

Return vs Industry: CNXN underperformed the US Electronic industry which returned 17.5% over the past year.

Return vs Market: CNXN underperformed the US Market which returned 22.1% over the past year.

Price Volatility

Is CNXN's price volatile compared to industry and market?
CNXN volatility
CNXN Average Weekly Movement4.9%
Electronic Industry Average Movement6.5%
Market Average Movement6.3%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: CNXN has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: CNXN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19822,703Tim McGrathwww.connection.com

PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT solutions, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories; and portfolio of managed services and professional services, as well as provides services related to design, configuration, and implementation of IT solutions.

PC Connection, Inc. Fundamentals Summary

How do PC Connection's earnings and revenue compare to its market cap?
CNXN fundamental statistics
Market capUS$1.86b
Earnings (TTM)US$90.15m
Revenue (TTM)US$2.79b

20.1x

P/E Ratio

0.7x

P/S Ratio

Is CNXN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
CNXN income statement (TTM)
RevenueUS$2.79b
Cost of RevenueUS$2.27b
Gross ProfitUS$519.80m
Other ExpensesUS$429.64m
EarningsUS$90.15m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)3.43
Gross Margin18.63%
Net Profit Margin3.23%
Debt/Equity Ratio0%

How did CNXN perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

11%

Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 23:28
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

PC Connection, Inc. is covered by 5 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ronald TilghmanB. Riley Securities, Inc.
Prabhakar GowrisankaranCanaccord Genuity
Adam TindleRaymond James & Associates