(CNXN) PC Connection - Ratings and Ratios
Computers, Software, Servers, Storage, Networking
CNXN EPS (Earnings per Share)
CNXN Revenue
Description: CNXN PC Connection
PC Connection Inc (NASDAQ:CNXN) is a technology distributor operating in the United States. The companys business model is centered around distributing IT products, services, and solutions to various customers.
To evaluate the companys performance, key financial metrics such as revenue growth, gross margin, and operating expenses as a percentage of revenue are crucial. A rising revenue trend and stable or expanding gross margins would indicate a healthy business. Additionally, Return on Equity (RoE) of 9.64% suggests that the company is generating decent returns for its shareholders, although this is relatively modest compared to some industry peers.
The stocks valuation, with a Price-to-Earnings (P/E) ratio of 18.53 and a forward P/E of 17.67, indicates that investors have moderate expectations for the companys future growth. The relatively low Beta of 0.695 implies that the stocks price movements are less volatile compared to the overall market, potentially making it a more stable investment for risk-averse investors.
Key economic drivers for technology distributors like CNXN include overall IT spending trends, competition from other distributors and direct-to-customer sales by manufacturers, and the ability to adapt to changing technology landscapes. The companys ability to maintain or grow its market share in a competitive environment will be crucial to its long-term success.
To further analyze CNXNs potential, examining its gross margin trends, sales growth by product segment, and operating efficiency metrics (such as days inventory outstanding and days sales outstanding) would provide valuable insights into its operational health and competitive positioning.
CNXN Stock Overview
| Market Cap in USD | 1,608m |
| Sub-Industry | Technology Distributors |
| IPO / Inception | 1998-03-04 |
CNXN Stock Ratings
| Growth Rating | 7.22% |
| Fundamental | 66.4% |
| Dividend Rating | 12.4% |
| Return 12m vs S&P 500 | -23.1% |
| Analyst Rating | 3.0 of 5 |
CNXN Dividends
| Dividend Yield 12m | 0.84% |
| Yield on Cost 5y | 1.31% |
| Annual Growth 5y | -25.81% |
| Payout Consistency | 77.4% |
| Payout Ratio | 16.3% |
CNXN Growth Ratios
| Growth Correlation 3m | -50.9% |
| Growth Correlation 12m | -68.2% |
| Growth Correlation 5y | 78.4% |
| CAGR 5y | 8.88% |
| CAGR/Max DD 5y | 0.29 |
| Sharpe Ratio 12m | -0.83 |
| Alpha | -24.89 |
| Beta | 0.823 |
| Volatility | 29.94% |
| Current Volume | 74.2k |
| Average Volume 20d | 74.2k |
| Stop Loss | 62.2 (-3.1%) |
| Signal | 0.87 |
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income (86.0m TTM) > 0 and > 6% of Revenue (6% = 173.7m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA -8.18pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 26.63% (prev 27.51%; Δ -0.88pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.04 (>3.0%) and CFO 52.1m <= Net Income 86.0m (YES >=105%, WARN >=100%) |
| Net Debt (-184.2m) to EBITDA (113.5m) ratio: -1.62 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.09 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (25.5m) change vs 12m ago -3.77% (target <= -2.0% for YES) |
| Gross Margin 18.32% (prev 18.48%; Δ -0.16pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 226.8% (prev 214.9%; Δ 11.87pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM) |
Altman Z'' 9.12
| (A) 0.61 = (Total Current Assets 1.14b - Total Current Liabilities 368.3m) / Total Assets 1.27b |
| (B) 0.68 = Retained Earnings (Balance) 868.0m / Total Assets 1.27b |
| (C) 0.08 = EBIT TTM 101.0m / Avg Total Assets 1.28b |
| (D) 2.26 = Book Value of Equity 868.3m / Total Liabilities 384.5m |
| Total Rating: 9.12 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.43
| 1. Piotroski 3.50pt = -1.50 |
| 2. FCF Yield 3.48% = 1.74 |
| 3. FCF Margin 1.54% = 0.39 |
| 4. Debt/Equity 0.02 = 2.50 |
| 5. Debt/Ebitda 0.16 = 2.48 |
| 6. ROIC - WACC 8.39% = 10.49 |
| 7. RoE 9.64% = 0.80 |
| 8. Rev. Trend -18.82% = -0.94 |
| 9. Rev. CAGR -0.75% = -0.13 |
| 10. EPS Trend 8.81% = 0.22 |
| 11. EPS CAGR 3.78% = 0.38 |
What is the price of CNXN shares?
Over the past week, the price has changed by -0.79%, over one month by +0.23%, over three months by -1.77% and over the past year by -10.09%.
Is PC Connection a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CNXN is around 60.06 USD . This means that CNXN is currently overvalued and has a potential downside of -6.46%.
Is CNXN a buy, sell or hold?
- Strong Buy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the CNXN price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76 | 18.4% |
| Analysts Target Price | 76 | 18.4% |
| ValueRay Target Price | 67.3 | 4.8% |
Last update: 2025-08-28 04:35
CNXN Fundamental Data Overview
CCE Cash And Equivalents = 346.1m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 19.2523
P/E Forward = 18.3486
P/S = 0.5556
P/B = 1.8175
P/EG = 1.8359
Beta = 0.722
Revenue TTM = 2.89b USD
EBIT TTM = 101.0m USD
EBITDA TTM = 113.5m USD
Long Term Debt = 16.2m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 1.92m USD (from shortTermDebt, last quarter)
Debt = 18.1m USD (Calculated: Short Term 1.92m + Long Term 16.2m)
Net Debt = -184.2m USD (from netDebt column, last quarter)
Enterprise Value = 1.28b USD (1.61b + Debt 18.1m - CCE 346.1m)
Interest Coverage Ratio = unknown (Ebit TTM 101.0m / Interest Expense TTM 0.0)
FCF Yield = 3.48% (FCF TTM 44.6m / Enterprise Value 1.28b)
FCF Margin = 1.54% (FCF TTM 44.6m / Revenue TTM 2.89b)
Net Margin = 2.97% (Net Income TTM 86.0m / Revenue TTM 2.89b)
Gross Margin = 18.32% ((Revenue TTM 2.89b - Cost of Revenue TTM 2.36b) / Revenue TTM)
Tobins Q-Ratio = 1.47 (Enterprise Value 1.28b / Book Value Of Equity 868.3m)
Interest Expense / Debt = 50.41% (Interest Expense 9.12m / Debt 18.1m)
Taxrate = 25.87% (from yearly Income Tax Expense: 30.4m / 117.5m)
NOPAT = 74.9m (EBIT 101.0m * (1 - 25.87%))
Current Ratio = 3.09 (Total Current Assets 1.14b / Total Current Liabilities 368.3m)
Debt / Equity = 0.02 (Debt 18.1m / last Quarter total Stockholder Equity 884.8m)
Debt / EBITDA = 0.16 (Net Debt -184.2m / EBITDA 113.5m)
Debt / FCF = 0.41 (Debt 18.1m / FCF TTM 44.6m)
Total Stockholder Equity = 892.5m (last 4 quarters mean)
RoA = 6.78% (Net Income 86.0m, Total Assets 1.27b )
RoE = 9.64% (Net Income TTM 86.0m / Total Stockholder Equity 892.5m)
RoCE = 11.12% (Ebit 101.0m / (Equity 892.5m + L.T.Debt 16.2m))
RoIC = 8.39% (NOPAT 74.9m / Invested Capital 892.5m)
WACC = unknown (E(1.61b)/V(1.63b) * Re(9.05%)) + (D(18.1m)/V(1.63b) * Rd(none%) * (1-Tc(0.26)))
Shares Correlation 5-Years: -10.0 | Cagr: -0.82%
Discount Rate = 9.05% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 73.00% ; FCFE base≈86.8m ; Y1≈78.7m ; Y5≈68.7m
Fair Price DCF = 40.92 (DCF Value 1.04b / Shares Outstanding 25.4m; 5y FCF grow -11.57% → 3.0% )
Revenue Correlation: -18.82 | Revenue CAGR: -0.75%
Rev Growth-of-Growth: 10.90
EPS Correlation: 8.81 | EPS CAGR: 3.78%
EPS Growth-of-Growth: -10.36
Additional Sources for CNXN Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle