CNXN Stock Analysis: PC Connection | NASDAQ
Electronics & Computer Distribution | NASDAQ, USA | Market Cap: 2.185m USD | 12M Return: 44.3% | US69318J1007 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 13.3M
EPS Trend: 83.3%
Qual. Beats: 2
Rev. Trend: 62.2%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 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. (NASDAQ: CNXN) is a U.S.-based 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 a broad customer base that includes large enterprises, small and medium-sized businesses, federal/state/local government agencies, and educational institutions.
Its offerings span the full IT lifecycle, including computer systems, data center and AI solutions, managed and professional services, cybersecurity, multicloud, and digital workspace services. The company also distributes a wide range of hardware, peripherals, networking products, and cloud solutions, marketing them through its websites and direct sales channels.
As a Technology Distributor within the Information Technology sector, CNXN operates in a highly competitive industry alongside other value-added resellers and IT service providers. Its diversified customer mix across enterprise, SMB, and public sector segments helps balance cyclical demand patterns that can vary between corporate IT spending and government procurement cycles.
- Public sector IT contract wins boost segment revenue
- Distribution margins pressured by competitive pricing dynamics
- Enterprise AI and data center demand accelerates
- SMB IT spending softens on macro headwinds
| Net Income: 95.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -1.13 > 1.0 |
| NWC/Revenue: 28.27% < 20% (prev 26.63%; Δ 1.64% < -1%) |
| CFO/TA 0.03 > 3% & CFO 42.0m > Net Income 95.8m |
| Net Debt (-326.5m) to EBITDA (140.5m): -2.32 < 3 |
| Current Ratio: 2.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.3m) vs 12m ago -0.71% < -2% |
| Gross Margin: 18.89% > 18% (prev 18.32%; Δ 0.57% > 0.5%) |
| Asset Turnover: 221.6% > 50% (prev 228.0%; Δ -6.45% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.59 (Total Current Assets 1.29b - Total Current Liabilities 449.3m) / Total Assets 1.43b |
| B: 0.66 (Retained Earnings 946.2m / Total Assets 1.43b) |
| C: 0.10 (EBIT TTM 129.3m / Avg Total Assets 1.35b) |
| D: 2.01 (Book Value of Equity 952.6m / Total Liabilities 475.0m) |
| Altman-Z'' = 8.79 = AAA |
| DSRI: 1.11 (Receivables 726.8m/637.0m, Revenue 2.99b/2.89b) |
| GMI: 0.97 (GM 18.32% / 18.89%) |
| AQI: 0.90 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.03 (Revenue 2.99b / 2.89b) |
| TATA: 0.04 (NI 95.8m - CFO 42.0m) / TA 1.43b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of October 28, 2026, the stock is trading at USD 88.58 with a total of 153,605 shares traded. Over the past week, the price has changed by +2.31%, over one month by -1.25%, over three months by +9.22% and over the past year by +44.31%.
Current recommended Stop Loss: 85.40 (which is 3.6% 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 | 83 | -6.3% |
P/E Trailing = 22.9048
P/E Forward = 19.4932
P/S = 0.7313
P/B = 2.3504
P/EG = 1.9499
Revenue TTM = 2.99b USD
EBIT TTM = 129.3m USD
EBITDA TTM = 140.5m USD
Long Term Debt = 6.68m USD (estimated: total debt 7.55m - short term 869k)
Short Term Debt = 869k USD (from shortTermDebt, last quarter)
Debt = 14.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.68m
Net Debt = -326.5m USD (calculated: Debt 14.2m - CCE 340.7m)
Enterprise Value = 1.86b USD (2.19b + Debt 14.2m - CCE 340.7m)
Interest Coverage Ratio = unknown (Ebit TTM 129.3m / Interest Expense TTM 0.0)
EV/FCF = 54.58x (Enterprise Value 1.86b / FCF TTM 34.1m)
FCF Yield = 1.83% (FCF TTM 34.1m / Enterprise Value 1.86b)
FCF Margin = 1.14% (FCF TTM 34.1m / Revenue TTM 2.99b)
Net Margin = 3.21% (Net Income TTM 95.8m / Revenue TTM 2.99b)
Gross Margin = 18.89% ((Revenue TTM 2.99b - Cost of Revenue TTM 2.42b) / Revenue TTM)
Gross Margin QoQ = 18.44% (prev 18.39%)
Tobins Q-Ratio = 1.30 (Enterprise Value 1.86b / Total Assets 1.43b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 14.2m)
Taxrate = 26.41% (34.4m / 130.2m)
NOPAT = 95.1m (EBIT 129.3m * (1 - 26.41%))
Current Ratio = 2.88 (Total Current Assets 1.29b / Total Current Liabilities 449.3m)
Debt / Equity = 0.01 (Debt 14.2m / totalStockholderEquity, last quarter 952.6m)
Debt / EBITDA = -2.32 (Net Debt -326.5m / EBITDA 140.5m)
Debt / FCF = -9.59 (Net Debt -326.5m / FCF TTM 34.1m)
Total Stockholder Equity = 921.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 7.11% (Net Income 95.8m / Total Assets 1.43b)
RoE = 10.40% (Net Income TTM 95.8m / Total Stockholder Equity 921.8m)
RoCE = 13.92% (EBIT 129.3m / Capital Employed (Equity 921.8m + L.T.Debt 6.68m))
RoIC = 11.46% (NOPAT 95.1m / Invested Capital 829.8m)
WACC = 7.51% (E(2.19b)/V(2.20b) * Re(7.56%) + D(14.2m)/V(2.20b) * Rd(0.0%) * (1-Tc(0.26)))
Discount Rate = 7.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.21 | Cagr: -2.01%
[DCF] Terminal Value 73.10% ; FCFF base≈38.3m ; Y1≈33.6m ; Y5≈27.1m
[DCF] Fair Price = 30.18 (EV 435.2m - Net Debt -326.5m = Equity 761.6m / Shares 25.2m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 83.29 | EPS CAGR: 6.40% | SUE: 2.48 | # QB: 2
Revenue Correlation: 62.16 | Revenue CAGR: 1.63% | SUE: 2.74 | # QB: 1
EPS current Quarter (2026-09-30): EPS=1.04 | Chg30d=-0.95% | Revisions=+0% | Analysts=2
EPS current Year (2026-12-31): EPS=4.17 | Chg30d=+6.37% | Revisions=+40% | GrowthEPS=+21.4% | GrowthRev=+8.2%
EPS next Year (2027-12-31): EPS=4.46 | Chg30d=+5.43% | Revisions=+40% | GrowthEPS=+7.0% | GrowthRev=+2.4%
[Analyst] Revisions Ratio: +44% (up=5, down=1)