CDW Stock Analysis: CDW | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 16.355m USD | 12M Return: -20.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 286M
EPS Trend: 57.7%
Qual. Beats: 0
Rev. Trend: 39.7%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
CDW Corporation is a large-cap U.S. information technology solutions provider headquartered in Vernon Hills, Illinois, and listed on NASDAQ since 1993. Founded in 1984 and formerly known as CDW Computer Centers, the company serves business, government, education, and healthcare customers across the United States, the United Kingdom, and Canada through three reporting segments: Commercial, Government, and Education.
The company operates a value-added distribution model, reselling a broad catalog of hardware (notebooks, desktops, servers, networking, storage, and collaboration devices) and software (cloud, security, virtualization, productivity, and operating systems) from third-party vendors. Beyond discrete product sales, CDW bundles advisory, design, implementation, software development, managed services, and warranty support into integrated hybrid IT solutions spanning on-premise and cloud environments. The technology distribution sub-industry in which CDW competes is typically characterized by high sales volume and relatively thin product margins, with profitability driven by scale, logistics efficiency, and the attach rate of higher-margin services.
- AI-driven hardware refresh lifts Commercial segment revenue
- Government and Education segments face federal budget pressure
- Capital allocation favors buybacks and debt paydown over M&A
| Net Income: 1.08b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 5.53% < 20% (prev 8.77%; Δ -3.24% < -1%) |
| CFO/TA 0.07 > 3% & CFO 1.19b > Net Income 1.08b |
| Net Debt (5.72b) to EBITDA (1.85b): 3.08 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (129.5m) vs 12m ago -3.00% < -2% |
| Gross Margin: 21.57% > 18% (prev 21.86%; Δ -0.29% > 0.5%) |
| Asset Turnover: 145.6% > 50% (prev 142.0%; Δ 3.56% > 0%) |
| Interest Coverage Ratio: 6.90 > 6 (EBIT TTM 1.56b / Interest Expense TTM 225.6m) |
| A: 0.08 (Total Current Assets 8.97b - Total Current Liabilities 7.70b) / Total Assets 16.5b |
| B: -0.08 (Retained Earnings -1.33b / Total Assets 16.5b) |
| C: 0.10 (EBIT TTM 1.56b / Avg Total Assets 15.7b) |
| D: 0.18 (Book Value of Equity 2.56b / Total Liabilities 13.9b) |
| Altman-Z'' = 1.10 = BB |
| DSRI: 1.15 (Receivables 7.24b/5.86b, Revenue 22.9b/21.3b) |
| GMI: 1.01 (GM 21.86% / 21.57%) |
| AQI: 0.93 (AQ_t 0.44 / AQ_t-1 0.47) |
| SGI: 1.07 (Revenue 22.9b / 21.3b) |
| TATA: -0.01 (NI 1.08b - CFO 1.19b) / TA 16.5b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of June 30, 2026, the stock is trading at USD 139.82 with a total of 1,905,493 shares traded. Over the past week, the price has changed by +13.15%, over one month by +11.45%, over three months by +18.68% and over the past year by -20.20%.
Current recommended Stop Loss: 131.60 (which is 5.9% or 1.5 ATR below the current price).
CDW has received a consensus analysts rating of 4.08. Therefore, it is recommended to buy CDW.
- StrongBuy: 5
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 145.1 | 3.8% |
P/E Trailing = 15.5932
P/E Forward = 11.1982
P/S = 0.7435
P/B = 6.6646
P/EG = 1.3345
Revenue TTM = 22.9b USD
EBIT TTM = 1.56b USD
EBITDA TTM = 1.85b USD
Long Term Debt = 4.64b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 6.30b USD (from shortLongTermDebtTotal, last quarter) + Leases 149.7m
Net Debt = 5.72b USD (calculated: Debt 6.30b - CCE 578.6m)
Enterprise Value = 22.1b USD (16.4b + Debt 6.30b - CCE 578.6m)
Interest Coverage Ratio = 6.90 (Ebit TTM 1.56b / Interest Expense TTM 225.6m)
EV/FCF = 20.51x (Enterprise Value 22.1b / FCF TTM 1.08b)
FCF Yield = 4.88% (FCF TTM 1.08b / Enterprise Value 22.1b)
FCF Margin = 4.70% (FCF TTM 1.08b / Revenue TTM 22.9b)
Net Margin = 4.70% (Net Income TTM 1.08b / Revenue TTM 22.9b)
Gross Margin = 21.57% ((Revenue TTM 22.9b - Cost of Revenue TTM 18.0b) / Revenue TTM)
Gross Margin QoQ = 20.95% (prev 22.76%)
Tobins Q-Ratio = 1.34 (Enterprise Value 22.1b / Total Assets 16.5b)
Interest Expense / Debt = 3.58% (Interest Expense 225.6m / Debt 6.30b)
Taxrate = 25.33% (365.3m / 1.44b)
NOPAT = 1.16b (EBIT 1.56b * (1 - 25.33%))
Current Ratio = 1.16 (Total Current Assets 8.97b / Total Current Liabilities 7.70b)
Debt / Equity = 2.46 (Debt 6.30b / totalStockholderEquity, last quarter 2.56b)
Debt / EBITDA = 3.08 (Net Debt 5.72b / EBITDA 1.85b)
Debt / FCF = 5.31 (Net Debt 5.72b / FCF TTM 1.08b)
Total Stockholder Equity = 2.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.84% (Net Income 1.08b / Total Assets 16.5b)
RoE = 42.37% (Net Income TTM 1.08b / Total Stockholder Equity 2.54b)
RoCE = 21.70% (EBIT 1.56b / Capital Employed (Equity 2.54b + L.T.Debt 4.64b))
RoIC = 12.19% (NOPAT 1.16b / Invested Capital 9.54b)
WACC = 7.32% (E(16.4b)/V(22.7b) * Re(9.11%) + D(6.30b)/V(22.7b) * Rd(3.58%) * (1-Tc(0.25)))
Discount Rate = 9.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -2.12%
[DCF] Terminal Value 76.33% ; FCFF base≈1.05b ; Y1≈1.11b ; Y5≈1.32b
[DCF] Fair Price = 114.5 (EV 20.3b - Net Debt 5.72b = Equity 14.6b / Shares 127.8m; r=8.35% [WACC [floored]]; 5y FCF grow 7.14% → 2.50% )
EPS Correlation: 57.67 | EPS CAGR: 1.15% | SUE: -0.06 | # QB: 0
Revenue Correlation: 39.67 | Revenue CAGR: 1.37% | SUE: 0.89 | # QB: 1
EPS next Quarter (2026-09-30): EPS=2.89 | Chg30d=+2.36% | Revisions=+45% | Analysts=10
EPS current Year (2026-12-31): EPS=10.74 | Chg30d=+1.15% | Revisions=+38% | GrowthEPS=+7.2% | GrowthRev=+5.0%
EPS next Year (2027-12-31): EPS=11.74 | Chg30d=+2.65% | Revisions=+54% | GrowthEPS=+9.3% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: +54%