CDW

CDW Corporation

Fundamental data last updated:October 30, 2026

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company profile

SECTOR

Technology

industry

Information Technology Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

11/04/2026

Business Summary

CDW Corporation specializes in delivering comprehensive information technology services and products across North America and the United Kingdom. It strategically targets three core client divisions: corporate enterprises, small to medium-sized businesses, and public sector organizations. Their portfolio encompasses both individual hardware and software offerings, alongside sophisticated integrated IT solution packages. These comprehensive solutions span on-premise, hybrid, and cloud environments, addressing critical areas such as data center infrastructure, network management, digital workspace enablement, and robust security. Key hardware categories include mobile computing devices (laptops, tablets), network infrastructure components, desktop workstations, display units, and enterprise data storage systems, while software offerings feature application suites, cybersecurity tools, virtualization platforms, operating systems, and network management utilities. Beyond products, CDW delivers a broad spectrum of services, including expert advisory and design, custom software development, system implementation, ongoing managed services, specialized professional support, configuration assistance, and telecommunications solutions, complemented by product warranties. They also focus on providing mission-critical software, system, and network solutions. Furthermore, installation, deployment, and repair services are facilitated for customers, often leveraging a network of third-party partners. Their diverse clientele includes governmental bodies, educational institutions, healthcare providers, and businesses of all scales – from small enterprises to major corporations. Established in 1984, the company maintains its primary corporate offices in Vernon Hills, Illinois.

 


VALUATION

P/E

19.55

Market Cap ($M USD)

$20.41B

Forward P/E

14.87

PEG

1.78

PRICE TO SALES

0.87

PRICE TO BOOK

8.49

EV / EBITDA

14.00

5-Year Average P/E

Free Cash Flow Yield

5.43%

DCF Value

$144.60

Graham Number

$60.67

Price to FCF

18.41

EV to FCF

23.46

Earnings Yield

5.21%

FCF Yield

5.43%

DIVIDEND

Yield

1.54%

Annual Payout

$2.52

Payout Ratio

37.54%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.51

Next Year EPS Growth Estimate

$10.98

Next Year Revenue Growth Estimate

$24.30B

Return on Equity (ROE)

42.60%

FREE CASH FLOW

Operating Margin

7.15%

Debt-to-Equity

2.44

Piotroski F-Score

6

Altman Z-Score

2.47

Return on Invested Capital (ROIC)

12.55%

Current Ratio

1.17

Quick Ratio

1.05

Net Debt to EBITDA

3.02

Interest Coverage

14.19

Gross Profit margin

21.36%

FCF PER SHARE

$8.73

REVENUE PER SHARE

$185.04

Gainseekers Quantitative Analysis

Summary

CDW Corporation’s valuation paints a compelling picture of potential mispricing. With its DCF value towering over recent pricing, the market seems to undervalue its intrinsic worth. The Graham Number further supports this undervaluation narrative. However, the Altman Z-score of 2.27 suggests moderate financial distress, hinting at some underlying risks. The absence of a Forward P/E and an earnings yield of 7.97% indicate a cautious outlook on growth, yet the stock’s overall financial health remains robust.

AI Exposure / Tech Reliance

Operating in the Information Technology Services industry, CDW is strategically positioned to leverage AI and modern tech advancements. Its sector inherently demands adaptability to technological shifts, ensuring resilience. This positioning allows CDW to capitalize on emerging trends and maintain relevance in a rapidly evolving landscape.

The Bull Case

For the discerning GARP investor, CDW offers a tantalizing opportunity. With a robust ROIC of 19.08%, the company demonstrates exceptional capital efficiency, translating into strong shareholder returns. A Piotroski F-Score of 6 indicates solid financial health, while a 2.40% yield and a manageable payout ratio of 30.35% suggest sustainable dividends. The company's operating margin of 7.29% reflects its pricing power, making it an attractive buy for those seeking value with growth potential.

The Bear Case

Despite its strengths, CDW is not without its vulnerabilities. The Price/Book ratio of 5.29 and Price/Sales ratio of 0.58 suggest a potentially overvalued stock relative to its book and sales values. The debt/equity ratio of 2.43 raises concerns about financial leverage, while the net debt to EBITDA of 2.94 underscores this risk. Additionally, the stock's proximity to its 52-week high could indicate technical overextension, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$149.60

Institutional Ownership %

1-Year Beta

0.94

Insider Buying % (6 Mo)

Distance to 52-Week High

1.79%

Distance to 52-Week Low

40.50%

EARNINGS SURPRISE %

3.93%

50-DAY SMA

$144.56

200-DAY SMA

$132.44

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.