NasdaqGS:CNXN

Stock Analysis Report

Executive Summary

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-3.3%

NasdaqGS:CNXN

1.4%

US Electronic

0.9%

US Market


1 Year Return

-7.1%

NasdaqGS:CNXN

-5.9%

US Electronic

0.3%

US Market

CNXN matched the Electronic industry (-6.9%) over the past year.

CNXN underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CNXNIndustryMarket
7 Day-3.3%1.4%0.9%
30 Day7.7%-3.4%-1.9%
90 Day4.5%0.5%1.6%
1 Year-6.1%-7.1%-4.9%-5.9%2.6%0.3%
3 Year37.4%32.6%45.4%41.3%41.0%31.8%
5 Year66.6%55.1%53.1%45.6%55.2%38.0%

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

Valuation

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

13.23x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

PC Connection's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

PC Connection's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

PC Connection is poor value based on expected growth next year.


Price Based on Value of Assets

PC Connection is good value based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PC Connection's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

PC Connection's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

PC Connection's revenue growth is positive but not above the United States of America market average.

PC Connection's earnings growth is positive but not above the United States of America market average.

PC Connection's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if PC Connection will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has PC Connection performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (12.8% vs 10.9%)

PC Connection's earnings growth has not exceeded the US Electronic industry average in the past year (12.8% vs 51.2%).


Return on Equity

PC Connection has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PC Connection used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

PC Connection's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PC Connection's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

PC Connection has no debt.

PC Connection currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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.


Balance Sheet

High level of physical assets or inventory.

PC Connection has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

0.90%

Current Dividend Yield


Dividend Yield and Payments Analysis

PC Connection's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

PC Connection's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

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.


Next Steps

Management

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

17.5yrs

Average board tenure


CEO

Tim McGrath (60yo)

8.0yrs

Tenure

US$4,494,125

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

Tim's remuneration is higher than average for companies of similar size in United States of America.

Tim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

17.5yrs

Average Tenure

70yo

Average Age

The average tenure for the PC Connection board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$963,58906 Mar 19
Joseph Baute
EntityIndividual
Shares25,160
Max PriceUS$40.29
SellUS$493,72206 Mar 19
David Beffa-Negrini
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,300
Max PriceUS$40.14
SellUS$124,95020 Feb 19
Jack Ferguson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$41.65
SellUS$82,92017 Sep 18
Barbara Duckett
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$41.46

Ownership Breakdown


Management Team

  • Pat Gallup (65yo)

    Co-Founder

    • Tenure: 24.9yrs
    • Compensation: US$1.04m
  • David Hall (70yo)

    Co-Founder & Director

    • Tenure: 0.0yrs
    • Compensation: US$305.00k
  • Tim McGrath (60yo)

    President & CEO

    • Tenure: 8.0yrs
    • Compensation: US$4.49m
  • Tom Baker (54yo)

    Senior VP

    • Tenure: 0.5yrs

Board Members

  • Pat Gallup (65yo)

    Co-Founder

    • Tenure: 24.9yrs
    • Compensation: US$1.04m
  • David Hall (70yo)

    Co-Founder & Director

    • Tenure: 0.0yrs
    • Compensation: US$305.00k
  • David Beffa-Negrini (65yo)

    Director

    • Tenure: 24.9yrs
    • Compensation: US$205.00k
  • Barbara Duckett (74yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$225.00k
  • Jack Ferguson (80yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$230.00k

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$938.239m
  • Shares outstanding: 26.32m
  • Website: https://www.connection.com

Number of Employees


Location

  • PC Connection, Inc.
  • 730 Milford Road
  • Merrimack
  • New Hampshire
  • 3054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNXNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1998
PCCDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1998

Biography

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 Sect ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:41
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.