(CNXN) PC Connection - Overview
Sector: Technology | Industry: Electronics & Computer Distribution | Exchange: NASDAQ (USA) | Market Cap: 1.687m USD | Total Return: 11.5% in 12m
Avg Turnover: 6.10M
EPS Trend: 86.6%
Qual. Beats: 1
Rev. Trend: 6.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
PC Connection, Inc. (CNXN) is a global provider of information technology solutions and hardware distribution, operating through enterprise, small business, and public sector segments. Founded in 1982, the company integrates complex IT systems including data centers, artificial intelligence, and cloud infrastructure for a diverse client base spanning healthcare, government, and education.
As a technology distributor, the company operates in a low-margin, high-volume industry where value-added services-such as cybersecurity consulting and lifecycle management-are critical for differentiation. The business model relies on a vast logistics network to supply hardware and software from multiple vendors to end-users ranging from small offices to large corporations.
Investors may find further insights on the companys valuation and performance metrics at ValueRay.
- Corporate IT spending cycles drive enterprise segment revenue and hardware refresh demand
- Public sector budget allocations influence education and government infrastructure project volume
- Managed services expansion improves recurring revenue mix and overall gross margins
- Supply chain stability impacts hardware inventory availability and fulfillment efficiency
- Small business digital transformation initiatives dictate growth in the business solutions segment
| Net Income: 87.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 4.20 > 1.0 |
| NWC/Revenue: 28.11% < 20% (prev 26.56%; Δ 1.55% < -1%) |
| CFO/TA 0.09 > 3% & CFO 132.1m > Net Income 87.5m |
| Net Debt (-405.0m) to EBITDA (130.9m): -3.09 < 3 |
| Current Ratio: 2.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.3m) vs 12m ago -3.57% < -2% |
| Gross Margin: 18.83% > 18% (prev 18.43%; Δ 0.40% > 0.5%) |
| Asset Turnover: 216.5% > 50% (prev 230.2%; Δ -13.61% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.57 (Total Current Assets 1.29b - Total Current Liabilities 477.2m) / Total Assets 1.43b |
| B: 0.64 (Retained Earnings 918.1m / Total Assets 1.43b) |
| C: 0.09 (EBIT TTM 116.6m / Avg Total Assets 1.34b) |
| D: 1.83 (Book Value of Equity 921.7m / Total Liabilities 503.3m) |
| Altman-Z'' = 8.35 = AAA |
| DSRI: 1.09 (Receivables 661.5m/604.0m, Revenue 2.89b/2.87b) |
| GMI: 0.98 (GM 18.43% / 18.83%) |
| AQI: 0.92 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.01 (Revenue 2.89b / 2.87b) |
| TATA: -0.03 (NI 87.5m - CFO 132.1m) / TA 1.43b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of June 05, 2026, the stock is trading at USD 71.51 with a total of 99,462 shares traded.
Over the past week, the price has changed by +5.24%,
over one month by +10.94%,
over three months by +15.69% and
over the past year by +11.46%.
PC Connection has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold CNXN.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 76 | 6.3% |
P/E Trailing = 19.4419
P/E Forward = 17.6678
P/S = 0.5831
P/B = 1.8337
P/EG = 1.7678
Revenue TTM = 2.89b USD
EBIT TTM = 116.6m USD
EBITDA TTM = 130.9m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 6.43m USD (from shortLongTermDebtTotal, last quarter) (leases 6.43m already included)
Net Debt = -405.0m USD (calculated: Debt 6.43m - CCE 411.4m)
Enterprise Value = 1.28b USD (1.69b + Debt 6.43m - CCE 411.4m)
Interest Coverage Ratio = unknown (Ebit TTM 116.6m / Interest Expense TTM 0.0)
EV/FCF = 10.30x (Enterprise Value 1.28b / FCF TTM 124.4m)
FCF Yield = 9.71% (FCF TTM 124.4m / Enterprise Value 1.28b)
FCF Margin = 4.30% (FCF TTM 124.4m / Revenue TTM 2.89b)
Net Margin = 3.02% (Net Income TTM 87.5m / Revenue TTM 2.89b)
Gross Margin = 18.83% ((Revenue TTM 2.89b - Cost of Revenue TTM 2.35b) / Revenue TTM)
Gross Margin QoQ = 18.39% (prev 19.29%)
Tobins Q-Ratio = 0.90 (Enterprise Value 1.28b / Total Assets 1.43b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.43m)
Taxrate = 26.39% (31.4m / 118.8m)
NOPAT = 85.8m (EBIT 116.6m * (1 - 26.39%))
Current Ratio = 2.70 (Total Current Assets 1.29b / Total Current Liabilities 477.2m)
Debt / Equity = 0.01 (Debt 6.43m / totalStockholderEquity, last quarter 921.7m)
Debt / EBITDA = -3.09 (Net Debt -405.0m / EBITDA 130.9m)
Debt / FCF = -3.26 (Net Debt -405.0m / FCF TTM 124.4m)
Total Stockholder Equity = 904.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.55% (Net Income 87.5m / Total Assets 1.43b)
RoE = 9.67% (Net Income TTM 87.5m / Total Stockholder Equity 904.8m)
RoCE = 12.30% (EBIT 116.6m / Capital Employed (Total Assets 1.43b - Current Liab 477.2m))
RoIC = 10.69% (NOPAT 85.8m / Invested Capital 803.1m)
WACC = 8.54% (E(1.69b)/V(1.69b) * Re(8.57%) + D(6.43m)/V(1.69b) * Rd(0.0%) * (1-Tc(0.26)))
Discount Rate = 8.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.87 | Cagr: -1.73%
[DCF] Terminal Value 77.36% ; FCFF base≈97.3m ; Y1≈111.5m ; Y5≈164.1m
[DCF] Fair Price = 110.8 (EV 2.39b - Net Debt -405.0m = Equity 2.80b / Shares 25.2m; r=8.54% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 86.55 | EPS CAGR: 5.40% | SUE: 1.25 | # QB: 1
Revenue Correlation: 6.36 | Revenue CAGR: 0.16% | SUE: 0.68 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.04 | Chg30d=-1.42% | Revisions=-33% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.05 | Chg30d=-1.87% | Revisions=-33% | Analysts=2
EPS current Year (2026-12-31): EPS=3.92 | Chg30d=+3.43% | Revisions=+33% | GrowthEPS=+14.1% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=4.24 | Chg30d=+0.95% | Revisions=+33% | GrowthEPS=+7.9% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: -33%