CDW

CDW Corporation

Fundamental data last updated:August 15, 2026

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company profile

SECTOR

Technology

industry

Information Technology Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise, hybrid, and cloud capabilities across data center and networking, digital workspace, and security. Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage, and others; and software products consists of application suites, security, virtualization, operating systems, and network management. The company also provides advisory and design, software development, implementation, managed, professional, configuration, and telecom services, as well as warranties; mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. The company was founded in 1984 and is headquartered in Vernon Hills, Illinois.

 


VALUATION

P/E

14.95

Market Cap ($M USD)

$15.94B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

0.70

PRICE TO BOOK

6.30

EV / EBITDA

10.94

5-Year Average P/E

Free Cash Flow Yield

6.75%

DCF Value

$169.27

Graham Number

$61.00

Price to FCF

14.82

EV to FCF

19.99

Earnings Yield

6.69%

FCF Yield

6.75%

DIVIDEND

Yield

2.02%

Annual Payout

$2.52

Payout Ratio

30.35%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.35

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$27.06B

Return on Equity (ROE)

42.37%

FREE CASH FLOW

Operating Margin

7.30%

Debt-to-Equity

2.43

Piotroski F-Score

6

Altman Z-Score

2.34

Return on Invested Capital (ROIC)

19.09%

Current Ratio

1.16

Quick Ratio

1.06

Net Debt to EBITDA

2.83

Interest Coverage

14.53

Gross Profit margin

21.57%

FCF PER SHARE

$8.34

REVENUE PER SHARE

$177.56

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

$145.17

Institutional Ownership %

1-Year Beta

1.04

Insider Buying % (6 Mo)

Distance to 52-Week High

47.35%

Distance to 52-Week Low

22.19%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$121.38

200-DAY SMA

$138.92

⚠️ 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.