CNXN Stock Analysis: PC Connection | NASDAQ
Electronics & Computer Distribution | NASDAQ, USA | Market Cap: 1.976m USD | 12M Return: 23.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 12.0M
EPS Trend: 86.6%
Qual. Beats: 1
Rev. Trend: 6.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
PC Connection, Inc. (CNXN) is a U.S.-based value-added IT solutions provider founded in 1982 and headquartered in Merrimack, New Hampshire. The company operates through three segments-Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions-serving large enterprises, small and medium-sized businesses, healthcare, manufacturing, retail, government, and educational customers. Its offerings span computer systems, data center and AI solutions, managed and professional services, cybersecurity, multicloud, digital workspace, modern infrastructure, and supply chain/lifecycle services, alongside a broad catalog of hardware, peripherals, software, and cloud products distributed via its websites. Marketing is conducted through outbound inside and field sales, digital advertising, and targeted segment campaigns. As a small-cap technology distributor in the IT channel, CNXN operates in a competitive, low-margin/high-volume business model that depends on vendor relationships with major OEMs (such as Dell, HP, and Cisco) and the ability to bundle hardware with integration, configuration, and managed services to differentiate from pure-play product resellers.
- Enterprise IT spending rebound drives Connection Enterprise Solutions segment growth
- Federal government contract awards lift Public Sector Solutions revenue
- AI and cloud solution mix shift expands gross margins
| 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 (-397.6m) to EBITDA (129.9m): -3.06 < 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 115.6m / 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 July 21, 2026, the stock is trading at USD 79.78 with a total of 136,100 shares traded. Over the past week, the price has changed by +1.64%, over one month by +15.14%, over three months by +26.14% and over the past year by +23.61%.
Current recommended Stop Loss: 77.00 (which is 3.5% or 1.3 ATR below the current price).
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 | -4.7% |
P/E Trailing = 22.7733
P/E Forward = 20.0803
P/S = 0.683
P/B = 2.1441
P/EG = 1.8899
Revenue TTM = 2.89b USD
EBIT TTM = 115.6m USD
EBITDA TTM = 129.9m USD
Long Term Debt = 6.43m USD (estimated: total debt 7.38m - short term 954k)
Short Term Debt = 954k USD (from shortTermDebt, last quarter)
Debt = 13.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.43m
Net Debt = -397.6m USD (calculated: Debt 13.8m - CCE 411.4m)
Enterprise Value = 1.58b USD (1.98b + Debt 13.8m - CCE 411.4m)
Interest Coverage Ratio = unknown (Ebit TTM 115.6m / Interest Expense TTM 0.0)
EV/FCF = 12.69x (Enterprise Value 1.58b / FCF TTM 124.4m)
FCF Yield = 7.88% (FCF TTM 124.4m / Enterprise Value 1.58b)
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 = 1.11 (Enterprise Value 1.58b / Total Assets 1.43b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 13.8m)
Taxrate = 26.39% (31.4m / 118.8m)
NOPAT = 85.1m (EBIT 115.6m * (1 - 26.39%))
Current Ratio = 2.70 (Total Current Assets 1.29b / Total Current Liabilities 477.2m)
Debt / Equity = 0.01 (Debt 13.8m / totalStockholderEquity, last quarter 921.7m)
Debt / EBITDA = -3.06 (Net Debt -397.6m / EBITDA 129.9m)
Debt / FCF = -3.20 (Net Debt -397.6m / 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 = 12.68% (EBIT 115.6m / Capital Employed (Equity 904.8m + L.T.Debt 6.43m))
RoIC = 10.58% (NOPAT 85.1m / Invested Capital 804.1m)
WACC = 8.17% (E(1.98b)/V(1.99b) * Re(8.23%) + D(13.8m)/V(1.99b) * Rd(0.0%) * (1-Tc(0.26)))
Discount Rate = 8.23% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.40 | Cagr: -2.05%
[DCF] Terminal Value 77.97% ; FCFF base≈97.3m ; Y1≈111.5m ; Y5≈164.1m
[DCF] Fair Price = 113.7 (EV 2.47b - Net Debt -397.6m = Equity 2.87b / Shares 25.2m; r=8.35% [WACC [floored]]; 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=+0.00% | Revisions=-40% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.05 | Chg30d=+0.00% | Revisions=-40% | Analysts=2
EPS current Year (2026-12-31): EPS=3.92 | Chg30d=+0.00% | Revisions=+40% | GrowthEPS=+14.1% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=4.24 | Chg30d=+0.00% | Revisions=+40% | GrowthEPS=+7.9% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +0% (up=4, down=4)