CNXN

PC Connection

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Technology

industry

Electronics & Computer Distribution

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

CNXN operates as a value-added distributor of technology hardware, software, and IT solutions, acting as an intermediary between manufacturers and enterprise or public-sector customers. The company generates cash by leveraging purchasing scale, supplier relationships, and logistics infrastructure to capture margin spreads on high-volume transactions. Its moat is operational rather than technological: efficient working capital management, established vendor partnerships, and customer procurement integration create switching friction. In a fragmented distribution landscape, consistency, balance sheet strength, and execution discipline are the core drivers of sustainable cash flow.

 


Analyze CNXN on TradingView

VALUATION

P/E

19.1

Market Cap ($M USD)

$1,573

Forward P/E

14.9

PEG

1.7

PRICE TO SALES

0.6

PRICE TO BOOK

1.7

EV / EBITDA

9.5

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

1.00%

Annual Payout

$0.80

Payout Ratio

18.30%

Consecutive Years of Dividend Growth

2

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$3.28

Next Year EPS Growth Estimate

$4.20

Next Year Revenue Growth Estimate

4.40%

Return on Equity (ROE)

9.20%

FREE CASH FLOW

Operating Margin

3.90%

Debt-to-Equity

0

Piotroski F-Score

5

Altman Z-Score

6.2

Return on Invested Capital (ROIC)

8.00%

Current Ratio

2.9

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze CNXN on TradingView

Gainseekers Quantitative Analysis

Summary

At 19.1x earnings and 14.9x forward earnings, CNXN is not priced like a distressed distributor, yet it also isn’t demanding a premium multiple. The 14.9 Forward P/E combined with a PEG of 1.7 implies moderate growth expectations, not explosive upside, but certainly not stagnation either. An Altman Z-Score of 6.2 signals extremely low bankruptcy risk, reinforcing balance sheet stability despite cyclical exposure. With a Price/Sales ratio of 0.6 and Price/Book of 1.7, the market is valuing this as a steady operator rather than a compounding growth engine, suggesting modest undervaluation if earnings durability holds.

AI Exposure / Tech Reliance

Operating in Electronics & Computer Distribution within Technology, CNXN sits directly in the supply chain of enterprise hardware and infrastructure refresh cycles. As AI workloads expand, demand for servers, networking equipment, and endpoint devices should support volume throughput. The firm’s resilience will depend less on innovation and more on its ability to efficiently distribute next-generation hardware at scale.

The Bull Case

A GARP or deep value investor could justify ownership based on disciplined profitability metrics and balance sheet safety. An 8.00% ROIC against a 9.20% operating margin shows the company is generating real operating income in a notoriously low-margin distribution industry. The Piotroski F-Score of 5 indicates financial stability without distress signals, while a 2.9 current ratio reinforces strong short-term liquidity. Institutional ownership at 76.00% suggests serious capital allocators view the business as investable and stable. Combined with a 0.6 Price/Sales multiple and 14.9 Forward P/E, the stock reflects reasonable growth expectations without speculative froth.

The Bear Case

There are real structural concerns. A Debt/Equity ratio of 3.90% suggests leverage, and while not extreme, it introduces sensitivity to downturns in enterprise IT spending. The PEG Forward of 1.7 indicates growth is not cheap relative to expectations, particularly with Return on Equity at just 4.40%, which is underwhelming for a technology distributor. EPS of 9.5 versus an EPS Next Year estimate of 3.28 raises serious questions about earnings trajectory or normalization risk. The Mean Consensus Target Price of 3 relative to current valuation metrics implies limited upside visibility from analysts, reinforcing the possibility that the stock is fairly valued rather than mispriced.

Market Sentiment & Smart Money

Short Interest %

8.50%

Analyst Consensus

3

Average Analyst Price Target

$76.00

Institutional Ownership %

41.90%

1-Year Beta

0.85

Insider Buying % (6 Mo)

57.30%%

Distance to 52-Week High

87.70%

Distance to 52-Week Low

113.60%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ 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.