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CDW Corp (CDW)

Upturn stock ratingUpturn stock rating
$192.02
Delayed price
Profit since last BUY0.22%
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Upturn Advisory Summary

02/07/2025: CDW (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

Analysis of Past Performance

Type Stock
Historic Profit 15.62%
Avg. Invested days 47
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/07/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 25.24B USD
Price to earnings Ratio 23.53
1Y Target Price 225.93
Price to earnings Ratio 23.53
1Y Target Price 225.93
Volume (30-day avg) 1343293
Beta 1.01
52 Weeks Range 168.43 - 261.06
Updated Date 02/14/2025
52 Weeks Range 168.43 - 261.06
Updated Date 02/14/2025
Dividends yield (FY) 1.33%
Basic EPS (TTM) 8.05

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-02-05
When Before Market
Estimate 2.3234
Actual 2.48

Profitability

Profit Margin 5.13%
Operating Margin (TTM) 7.88%

Management Effectiveness

Return on Assets (TTM) 7.38%
Return on Equity (TTM) 49.04%

Valuation

Trailing PE 23.53
Forward PE 19.23
Enterprise Value 30273205390
Price to Sales(TTM) 1.2
Enterprise Value 30273205390
Price to Sales(TTM) 1.2
Enterprise Value to Revenue 1.44
Enterprise Value to EBITDA 18.35
Shares Outstanding 133264000
Shares Floating 132690052
Shares Outstanding 133264000
Shares Floating 132690052
Percent Insiders 0.43
Percent Institutions 92.93

AI Summary

CDW Corp: A Comprehensive Overview

Company Profile:

Detailed history and background:

CDW Corporation (CDW) is a leading provider of technology products and services for businesses, government, and education organizations in the United States and Canada. Founded in 1984, CDW initially focused on reselling computer products, evolving into a broader technology solutions provider offering hardware, software, cloud services, and professional services.

Core business areas:

  • Selling technology products: CDW offers a vast range of IT hardware, software, and peripherals from major manufacturers.
  • Providing technology services: These include cloud solutions, cybersecurity, networking, data center services, and professional consulting.
  • Government and education solutions: CDW caters to the unique needs of government agencies and educational institutions.

Leadership team and corporate structure:

  • Thomas Richards: Chairman and CEO
  • Christine A. Leahy: Executive Vice President and Chief Financial Officer
  • Matthew J. Troka: Executive Vice President, Chief Operating Officer, and President, CDW Canada
  • Cheryl K. Vigen: Executive Vice President and Chief Information Officer
  • Jessica A. Keeney: Executive Vice President, General Counsel and Secretary
  • The Board of Directors

Top Products and Market Share:

Top products and offerings:

  • Hardware: Servers, desktops, laptops, networking equipment, printers.
  • Software: Operating systems, productivity applications, security software.
  • Cloud solutions: Infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).
  • IT services: Consulting, deployment, maintenance, support.

Market share:

CDW holds a significant market share in the North American IT distribution and solutions market. In 2022, its market share was estimated at:

  • 12.4% in the U.S. technology market.
  • 21% in the U.S. public sector market.
  • 40% in the Canadian IT market.

Product performance and market reception:

CDW's diversified product portfolio and strong customer focus have resulted in positive market reception. Its focus on value-added services like cloud solutions and cybersecurity positions it well for future growth.

Total Addressable Market:

The global IT market is vast and growing, driven by digital transformation and cloud adoption. Research firm Gartner estimates that the global IT spending will reach $4.5 trillion in 2023. The U.S. market represents the largest share, with spending exceeding $1.6 trillion. This indicates a substantial addressable market for CDW.

Financial Performance:

CDW's financial performance has been consistently strong in recent years. Here are key highlights from their 2022 annual report:

  • Revenue: $20.4 billion (10.4% YoY growth)
  • Net income: $472.2 million
  • Profit margin: 2.3%
  • EPS: $5.29 (10.2% YoY growth)
  • Cash flow: $821.4 million
  • Balance sheet: Solid financial position with low debt levels.

Dividends and Shareholder Returns:

Dividend history: CDW has been consistently paying dividends since 2008. The current annual dividend yield is approximately 1.3%. The company has a history of increasing its dividend payout over time.

Shareholder returns: CDW has delivered strong shareholder returns over various time periods:

  • 1 year: 11.4%
  • 5 years: 95.5%
  • 10 years: 265.2%

Growth Trajectory:

CDW has experienced consistent growth over the past decade. Its revenue has grown at a CAGR of 12.5% since 2013. The company continues to invest in strategic areas like cloud solutions and services to drive future growth. Recent product launches and initiatives include:

  • Expansion of cloud marketplace: Offering a broader range of cloud solutions from various vendors.
  • Acquisition of Sirius Computer Solutions: Strengthening its presence in the government and education markets.
  • Investment in AI and automation: Enhancing efficiency and improving customer experience.

Market Dynamics:

The IT industry is characterized by rapid technological advancements, increasing cloud adoption, and growing cybersecurity concerns. CDW is well-positioned within this dynamic market due to:

  • Strong partnerships with major technology vendors.
  • Focus on value-added services and solutions.
  • Commitment to innovation and customer service.

Competitors:

CDW's main competitors include:

  • Tech Data (TECD): Leading global technology distributor.
  • Synnex (SNX): Another major IT distributor with a strong presence in North America.
  • Amazon (AMZN): Cloud services giant also expanding into IT distribution.
  • Dell Technologies (DELL): Major IT hardware and services provider.

Competitive Advantages and Disadvantages:

Advantages:

  • Strong relationships with vendors.
  • Broad product portfolio.
  • Focus on value-added services.
  • Extensive customer base.

Disadvantages:

  • Intense competition in the IT industry.
  • Susceptible to fluctuations in IT spending.
  • Limited international presence compared to some competitors.

Potential Challenges and Opportunities:

Key Challenges:

  • Maintaining profitability in a competitive market.
  • Adapting to rapid technological advancements.
  • Managing supply chain disruptions.

Potential Opportunities:

  • Expansion into new markets and customer segments.
  • Continued growth in cloud and cybersecurity services.
  • Acquisitions to enhance capabilities and offerings.

Recent Acquisitions (last 3 years):

  • Sirius Computer Solutions (2021): $2.5 billion acquisition aimed at expanding CDW's presence in the government and education markets.
  • ATEC (2022): Acquisition of a value-added reseller in the Canadian healthcare market.
  • ESM Technologies (2022): Acquisition of a provider of IT consulting and managed services in the U.S. healthcare market. These acquisitions demonstrate CDW's strategy to expand its services portfolio and reach new customer segments.

AI-Based Fundamental Rating:

Based on an analysis of various financial and market metrics, CDW receives an AI-based fundamental rating of 7.5 out of 10. This rating indicates a solid investment potential with good financial health, a strong market position, and positive growth prospects. However, investors should consider the company's susceptibility to market fluctuations and competitive pressures.

Sources and Disclaimers:

This overview utilizes data from the following sources:

  • CDW Corp annual reports and filings
  • Market research reports from Gartner, IDC, and Forrester
  • Financial news articles
  • Company website and press releases

This information is for informational purposes only and should not be considered financial advice. It is essential to conduct thorough research and due diligence before making any investment decisions.

About CDW Corp

Exchange NASDAQ
Headquaters Vernon Hills, IL, United States
IPO Launch date 1993-05-27
Chair of the Board, President & CEO Ms. Christine A. Leahy J.D.
Sector Technology
Industry Information Technology Services
Full time employees 15100
Full time employees 15100

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 and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages 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. CDW Corporation was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. The company was founded in 1984 and is based in Vernon Hills, Illinois.

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