Stocks analysis

Analysis for CDW

$154.33 +4.23 (+2.82%)
  • 📈 Growth — 15/30
  • 💰 Profitability — 16/20
  • 🏦 Financial Health — 14/20
  • 💵 Valuation — 12/20
  • ⚠️ Risk — 7/10
Overall Score: 60/100

Summary:


📈 Growth & Financial Trajectory

CDW's eight-quarter trajectory shows revenue growing from about $5.42B in 2024 Q2 to $6.57B in 2026 Q2, a roughly 21% expansion. Net income, however, eased from about $316.4M to $274.4M, down ~13%, indicating profitability pressures despite top-line strength. Gross margin remained around the low- to mid-20% range (roughly 20.1%–20.7%), suggesting modest compression while revenue climbs. Overall, the trajectory is revenue-led growth with steadier, albeit uneven, profitability.

💰 Margins & Cash Flow

  • Gross margin around 20%
  • Operating margin in the mid single digits historically
  • Cash flow: operating cash flow generally positive in most quarters but with variability; 2026 Q2 shows a negative net cash flow due to higher financing outflows

🛡️ Balance Sheet & Liquidity

Balance sheet is asset-light relative to scale but healthy liquidity: total assets run about $15–$17B, liabilities about $11–$13B, and equity around $2.3–$2.7B. Current assets exceed current liabilities in several quarters, supporting liquidity, though leverage remains meaningful.

⚠️ Key Drivers & Risks

  • Drivers: enterprise IT/BD hardware and services demand, channel strength
  • Risks: cyclicality of tech spending, margin sensitivity to cost structure and financing activity

📊 Key Financial Fundamentals

Valuation Multiples
Market Cap $18.74B
P/E Ratio 17.35
Forward P/E 12.83
P/S Ratio 0.80
P/B Ratio 7.36
EV / EBITDA 12.24
Profitability & Returns
Gross Margin 21.36%
Operating Margin 7.14%
Net Margin 4.60%
ROE 42.60%
ROIC 13.15%
Financial Health & Liquidity
Current Ratio 1.17
Quick Ratio 1.01
Financial Scale & Cash Flow
Revenue $23.50B
Net Income $1.08B
FCF Yield 5.74%
Free Cash Flow $1.08B
Total Debt To Equity 2.38