(CDW) CDW - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 14.158m USD | Total Return: -39.2% in 12m
Avg Turnover: 206M
EPS Trend: -17.0%
Qual. Beats: 0
Rev. Trend: 39.7%
Qual. Beats: 1
Warnings
Altman Z'' 0.84 < 1.0 - financial distress zone
Tailwinds
Confidence
CDW Corporation is a multi-national provider of information technology solutions serving commercial, government, education, and healthcare clients in the United States, Canada, and the United Kingdom. The company functions as a value-added reseller (VAR), bridging the gap between major technology manufacturers and end-users by offering a comprehensive suite of hardware, software, and integrated services. Its offerings span hybrid infrastructure, digital workspace tools, and cybersecurity solutions.
As a technology distributor, CDW operates within a sector characterized by high volume and thin margins, where profitability often depends on scale and deep vendor relationships. The company’s business model relies on its ability to provide technical expertise and lifecycle management services, which adds value beyond simple hardware fulfillment. Investors may find it useful to examine ValueRay for deeper insights into the companys competitive positioning.
The firm’s portfolio includes mobile devices, network communications, data storage, and cloud-based software suites. In addition to product sales, CDW generates revenue through professional services such as advisory, design, implementation, and managed IT support. Founded in 1984 and headquartered in Vernon Hills, Illinois, the company has evolved from a direct-to-consumer computer retailer into a global enterprise technology partner.
- Corporate IT spending recovery drives hardware and software volume growth
- Shift toward high-margin cloud and security services improves operating margins
- Federal and education sector budget cycles dictate seasonal revenue fluctuations
- Supply chain stability and inventory management impact working capital efficiency
- Interest rate volatility influences financing costs for large-scale enterprise deployments
| 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 (1.97b): 2.91 < 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 0.22%; Δ 2.14k% > 0.5%) |
| Asset Turnover: 145.6% > 50% (prev 142.0%; Δ 3.56% > 0%) |
| Interest Coverage Ratio: 7.41 > 6 (EBITDA TTM 1.97b / 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: 0.11 (EBIT TTM 1.67b / Avg Total Assets 15.7b) |
| D: -0.10 (Book Value of Equity -1.45b / Total Liabilities 13.9b) |
| Altman-Z'' = 0.84 = B |
| DSRI: 1.15 (Receivables 7.24b/5.86b, Revenue 22.9b/21.3b) |
| GMI: 1.01 (GM 21.57% / 21.86%) |
| 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 = -2.89 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 110.82 with a total of 1,519,600 shares traded.
Over the past week, the price has changed by +9.22%,
over one month by -16.25%,
over three months by -8.31% and
over the past year by -39.18%.
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 | 147.3 | 32.9% |
P/E Trailing = 13.4982
P/E Forward = 11.1982
P/S = 0.6181
P/B = 5.5383
P/EG = 1.3345
Revenue TTM = 22.9b USD
EBIT TTM = 1.67b USD
EBITDA TTM = 1.97b 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 = 19.9b USD (14.2b + Debt 6.30b - CCE 578.6m)
Interest Coverage Ratio = 7.41 (Ebit TTM 1.67b / Interest Expense TTM 225.6m)
EV/FCF = 18.47x (Enterprise Value 19.9b / FCF TTM 1.08b)
FCF Yield = 5.41% (FCF TTM 1.08b / Enterprise Value 19.9b)
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 = 1.21 (Enterprise Value 19.9b / Total Assets 16.5b)
Interest Expense / Debt = 3.58% (Interest Expense 225.6m / Debt 6.30b)
Taxrate = 26.21% (83.6m / 319.0m)
NOPAT = 1.23b (EBIT 1.67b * (1 - 26.21%))
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 = 2.91 (Net Debt 5.72b / EBITDA 1.97b)
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 = 27.78% (Net Income TTM 1.08b / Total Stockholder Equity 3.88b)
RoCE = 19.63% (EBIT 1.67b / Capital Employed (Equity 3.88b + L.T.Debt 4.64b))
RoIC = 12.23% (NOPAT 1.23b / Invested Capital 10.1b)
WACC = 7.12% (E(14.2b)/V(20.5b) * Re(9.11%) + D(6.30b)/V(20.5b) * Rd(3.58%) * (1-Tc(0.26)))
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: -17.04 | EPS CAGR: -0.45% | SUE: -0.06 | # QB: 0
Revenue Correlation: 39.67 | Revenue CAGR: 1.37% | SUE: 0.89 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.77 | Chg30d=+1.55% | Revisions=+33% | Analysts=10
EPS next Quarter (2026-09-30): EPS=2.83 | Chg30d=+0.32% | Revisions=+27% | Analysts=10
EPS current Year (2026-12-31): EPS=10.62 | Chg30d=+0.79% | Revisions=+38% | GrowthEPS=+6.0% | GrowthRev=+4.7%
EPS next Year (2027-12-31): EPS=11.44 | Chg30d=+0.95% | Revisions=+54% | GrowthEPS=+7.8% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +54%