PC Connection
Market Cap
US$1.2b
Last Updated
2021/03/06 23:40 UTC
Data Sources
Company Financials +
Executive Summary
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has PC Connection's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNXN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CNXN's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-1.2%
CNXN
-2.7%
US Electronic
-0.4%
US Market
1 Year Return
14.6%
CNXN
52.1%
US Electronic
36.2%
US Market
Return vs Industry: CNXN underperformed the US Electronic industry which returned 53.5% over the past year.
Return vs Market: CNXN underperformed the US Market which returned 36.3% over the past year.
Shareholder returns
| CNXN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | -2.7% | -0.4% |
| 30 Day | -9.3% | -0.9% | -2.3% |
| 90 Day | -2.2% | 8.5% | 5.0% |
| 1 Year | 15.4%14.6% | 55.8%52.1% | 39.1%36.2% |
| 3 Year | 75.4%71.3% | 45.2%39.0% | 48.4%39.0% |
| 5 Year | 94.4%85.2% | 148.7%132.5% | 116.6%92.4% |
Long-Term Price Volatility Vs. Market
How volatile is PC Connection's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
PC Connection, Inc.'s (NASDAQ:CNXN) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?1 month ago | Simply Wall St
Should You Be Impressed By PC Connection's (NASDAQ:CNXN) Returns on Capital?2 months ago | Simply Wall St
Calculating The Fair Value Of PC Connection, Inc. (NASDAQ:CNXN)Valuation
Is PC Connection undervalued compared to its fair value and its price relative to the market?
21.31x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CNXN ($45.44) is trading above our estimate of fair value ($44.21)
Significantly Below Fair Value: CNXN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CNXN is good value based on its PE Ratio (21.3x) compared to the US Electronic industry average (30.1x).
PE vs Market: CNXN is good value based on its PE Ratio (21.3x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: CNXN is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: CNXN is good value based on its PB Ratio (1.9x) compared to the US Electronic industry average (2.6x).
Next Steps
Future Growth
How is PC Connection forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
16.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNXN's forecast earnings growth (16.9% per year) is above the savings rate (2%).
Earnings vs Market: CNXN's earnings (16.9% per year) are forecast to grow slower than the US market (19.3% per year).
High Growth Earnings: CNXN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CNXN's revenue (4.7% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: CNXN's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNXN's Return on Equity is forecast to be low in 3 years time (11.7%).
Next Steps
Past Performance
How has PC Connection performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNXN has high quality earnings.
Growing Profit Margin: CNXN's current net profit margins (2.2%) are lower than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: CNXN's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: CNXN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CNXN had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Electronic industry average (-9.3%).
Return on Equity
High ROE: CNXN's Return on Equity (8.8%) is considered low.
Next Steps
Financial Health
How is PC Connection's financial position?
Financial Position Analysis
Short Term Liabilities: CNXN's short term assets ($859.0M) exceed its short term liabilities ($342.3M).
Long Term Liabilities: CNXN's short term assets ($859.0M) exceed its long term liabilities ($36.8M).
Debt to Equity History and Analysis
Debt Level: CNXN is debt free.
Reducing Debt: CNXN had no debt 5 years ago.
Debt Coverage: CNXN has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CNXN has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is PC Connection current dividend yield, its reliability and sustainability?
0.70%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CNXN's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: CNXN's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.64%).
Stability and Growth of Payments
Stable Dividend: CNXN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: CNXN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CNXN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
19.1yrs
Average board tenure
CEO
Tim McGrath (61 yo)
9.58yrs
Tenure
US$4,035,279
Compensation
Mr. Timothy J. McGrath, also known as Tim, has been the Chief Executive Officer of PC Connection, Inc. since August 2011 and has been its President since May 2010. Mr. McGrath served as the President and C...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD4.04M) is above average for companies of similar size in the US market ($USD2.24M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 26.5yrs | US$767.38k | 1.83% $ 21.7m | |
| Independent Director | 26.5yrs | US$84.38k | 0.36% $ 4.3m | |
| Independent Director | 11.75yrs | US$95.00k | 0.049% $ 585.1k | |
| Independent Director | 4.83yrs | US$100.00k | 0.32% $ 3.8m |
19.1yrs
Average Tenure
70.5yo
Average Age
Experienced Board: CNXN's board of directors are seasoned and experienced ( 19.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNXN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
PC Connection, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: PC Connection, Inc.
- Ticker: CNXN
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Technology Distributors
- Sector: Tech
- Market Cap: US$1.189b
- Shares outstanding: 26.18m
- Website: https://www.connection.com
Number of Employees
Location
- PC Connection, Inc.
- 730 Milford Road
- Merrimack
- New Hampshire
- 03054-4631
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNXN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Mar 1998 |
| PCC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1998 |
Biography
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Pu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/06 23:40 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.