(CNXN) PC Connection - Overview
Stock: Hardware, Software, Services, Accessories, Networking
| Risk 5d forecast | |
|---|---|
| Volatility | 27.0% |
| Relative Tail Risk | -10.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.01 |
| Alpha | -11.04 |
| Character TTM | |
|---|---|
| Beta | 0.609 |
| Beta Downside | 0.488 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.26% |
| CAGR/Max DD | 0.57 |
EPS (Earnings per Share)
Revenue
Description: CNXN PC Connection January 15, 2026
PC Connection, Inc. (NASDAQ: CNXN) delivers a broad portfolio of information-technology solutions-including hardware, software, networking, and data-center products-plus managed and professional services. The firm structures its business across three segments: Enterprise Solutions, Business Solutions, and Public Sector Solutions, targeting everything from small-office/home-office (SOHO) customers to large enterprises and government/education institutions.
Operating primarily through a suite of e-commerce sites (e.g., connection.com, connection.com/enterprise, connection.com/publicsector, cnxnhelix.com, macconnection.com), the company reaches its clientele via outbound inside and field sales, digital advertising, and targeted marketing programs. Founded in 1982 and headquartered in Merrimack, New Hampshire, PC Connection has built a reputation as a value-added reseller within the U.S. technology distribution space.
Key performance indicators from the most recent fiscal year (FY 2023) show revenue of approximately $1.4 billion, a year-over-year growth of 5.2%, and an operating margin of 3.1%, reflecting modest expansion amid a competitive distributor landscape. The sector’s growth is being driven by sustained enterprise spending on cloud migration and data-center modernization, while macro-economic factors such as corporate IT budget constraints and the ongoing shortage of skilled IT staff influence demand for managed services.
Analysts note that PC Connection’s focus on high-touch service and its diversified customer base help mitigate the pricing pressure typical of pure-play hardware distributors, but the company remains vulnerable to fluctuations in discretionary IT spend and to supply-chain disruptions that affect inventory turnover.
For a deeper quantitative assessment, see the ValueRay analysis of CNXN.
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income: 83.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -8.50 > 1.0 |
| NWC/Revenue: 27.86% < 20% (prev 28.39%; Δ -0.53% < -1%) |
| CFO/TA 0.05 > 3% & CFO 65.4m > Net Income 83.7m |
| Net Debt (-192.7m) to EBITDA (125.4m): -1.54 < 3 |
| Current Ratio: 2.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.3m) vs 12m ago -4.36% < -2% |
| Gross Margin: 18.77% > 18% (prev 0.19%; Δ 1859 % > 0.5%) |
| Asset Turnover: 216.8% > 50% (prev 215.7%; Δ 1.13% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
Altman Z'' 8.81
| A: 0.59 (Total Current Assets 1.22b - Total Current Liabilities 420.4m) / Total Assets 1.35b |
| B: 0.67 (Retained Earnings 905.9m / Total Assets 1.35b) |
| C: 0.09 (EBIT TTM 113.7m / Avg Total Assets 1.33b) |
| D: 2.06 (Book Value of Equity 906.3m / Total Liabilities 440.8m) |
| Altman-Z'' Score: 8.81 = AAA |
Beneish M -2.97
| DSRI: 1.03 (Receivables 648.0m/611.4m, Revenue 2.87b/2.80b) |
| GMI: 0.99 (GM 18.77% / 18.55%) |
| AQI: 1.02 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.03 (Revenue 2.87b / 2.80b) |
| TATA: 0.01 (NI 83.7m - CFO 65.4m) / TA 1.35b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
What is the price of CNXN shares?
Over the past week, the price has changed by -2.03%, over one month by +9.31%, over three months by +8.81% and over the past year by +1.10%.
Is CNXN a buy, sell or hold?
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the CNXN price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76 | 18.2% |
| Analysts Target Price | 76 | 18.2% |
| ValueRay Target Price | 70.7 | 10% |
CNXN Fundamental Data Overview February 11, 2026
P/E Forward = 17.9856
P/S = 0.5853
P/B = 1.8456
P/EG = 1.8899
Revenue TTM = 2.87b USD
EBIT TTM = 113.7m USD
EBITDA TTM = 125.4m USD
Long Term Debt = unknown (none)
Short Term Debt = 1.62m USD (from shortTermDebt, two quarters ago)
Debt = 996.0k USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -192.7m USD (from netDebt column, last quarter)
Enterprise Value = 1.28b USD (1.68b + Debt 996.0k - CCE 406.7m)
Interest Coverage Ratio = unknown (Ebit TTM 113.7m / Interest Expense TTM 0.0)
EV/FCF = 21.98x (Enterprise Value 1.28b / FCF TTM 58.0m)
FCF Yield = 4.55% (FCF TTM 58.0m / Enterprise Value 1.28b)
FCF Margin = 2.02% (FCF TTM 58.0m / Revenue TTM 2.87b)
Net Margin = 2.91% (Net Income TTM 83.7m / Revenue TTM 2.87b)
Gross Margin = 18.77% ((Revenue TTM 2.87b - Cost of Revenue TTM 2.33b) / Revenue TTM)
Gross Margin QoQ = 19.29% (prev 19.55%)
Tobins Q-Ratio = 0.94 (Enterprise Value 1.28b / Total Assets 1.35b)
Interest Expense / Debt = 916.1% (Interest Expense 9.12m / Debt 996.0k)
Taxrate = 21.0% (US default 21%)
NOPAT = 89.8m (EBIT 113.7m * (1 - 21.00%))
Current Ratio = 2.90 (Total Current Assets 1.22b / Total Current Liabilities 420.4m)
Debt / Equity = 0.00 (Debt 996.0k / totalStockholderEquity, last quarter 910.1m)
Debt / EBITDA = -1.54 (Net Debt -192.7m / EBITDA 125.4m)
Debt / FCF = -3.32 (Net Debt -192.7m / FCF TTM 58.0m)
Total Stockholder Equity = 893.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.32% (Net Income 83.7m / Total Assets 1.35b)
RoE = 9.37% (Net Income TTM 83.7m / Total Stockholder Equity 893.7m)
RoCE = 12.22% (EBIT 113.7m / Capital Employed (Total Assets 1.35b - Current Liab 420.4m))
RoIC = 10.12% (NOPAT 89.8m / Invested Capital 888.2m)
WACC = 8.16% (E(1.68b)/V(1.68b) * Re(8.16%) + (debt cost/tax rate unavailable))
Discount Rate = 8.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.21%
[DCF Debug] Terminal Value 75.98% ; FCFF base≈101.3m ; Y1≈91.9m ; Y5≈80.1m
Fair Price DCF = 62.92 (EV 1.39b - Net Debt -192.7m = Equity 1.59b / Shares 25.2m; r=8.16% [WACC]; 5y FCF grow -11.57% → 2.90% )
EPS Correlation: 13.86 | EPS CAGR: 2.48% | SUE: -0.26 | # QB: 0
Revenue Correlation: -50.90 | Revenue CAGR: -3.01% | SUE: -0.87 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.62 | Chg30d=+0.010 | Revisions Net=+1 | Analysts=2
EPS current Year (2026-12-31): EPS=3.79 | Chg30d=-0.005 | Revisions Net=+1 | Growth EPS=+10.3% | Growth Revenue=+4.2%
EPS next Year (2027-12-31): EPS=4.20 | Chg30d=-0.205 | Revisions Net=+0 | Growth EPS=+10.5% | Growth Revenue=+4.4%