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CNXN 
PC Connection Inc (CNXN)
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Upturn Advisory Summary
12/03/2025: CNXN (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
1 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $76
1 Year Target Price $76
| 0 | Strong Buy |
| 0 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.87% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/03/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.49B USD | Price to earnings Ratio 17.94 | 1Y Target Price 76 |
Price to earnings Ratio 17.94 | 1Y Target Price 76 | ||
Volume (30-day avg) 1 | Beta 0.82 | 52 Weeks Range 54.97 - 74.64 | Updated Date 12/3/2025 |
52 Weeks Range 54.97 - 74.64 | Updated Date 12/3/2025 | ||
Dividends yield (FY) 0.95% | Basic EPS (TTM) 3.27 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.91% | Operating Margin (TTM) 4.27% |
Management Effectiveness
Return on Assets (TTM) 4.88% | Return on Equity (TTM) 9.3% |
Valuation
Trailing PE 17.94 | Forward PE 17.99 | Enterprise Value 1071014941 | Price to Sales(TTM) 0.52 |
Enterprise Value 1071014941 | Price to Sales(TTM) 0.52 | ||
Enterprise Value to Revenue 0.37 | Enterprise Value to EBITDA 9.44 | Shares Outstanding 25245224 | Shares Floating 9898652 |
Shares Outstanding 25245224 | Shares Floating 9898652 | ||
Percent Insiders 56.46 | Percent Institutions 42.22 |
Upturn AI SWOT
PC Connection Inc
Company Overview
History and Background
PC Connection, Inc. was founded in 1982 as a direct marketer of PC products. Over time, it evolved from a catalog-based reseller to an IT solutions provider serving businesses, government, healthcare, and education sectors.
Core Business Areas
- Business Solutions: Provides IT solutions and services, including hardware, software, and cloud solutions, primarily to small- and medium-sized businesses (SMBs).
- MoreDirect: Focuses on serving larger enterprise customers with complex IT infrastructure needs, providing advanced technology solutions and procurement services.
- GovConnection: Specializes in serving federal, state, and local government customers, offering IT products and solutions tailored to their specific requirements.
- TigerDirect: Offers a wide range of consumer electronics and computer products through its online platform
Leadership and Structure
The leadership team includes Timothy J. McGrath (President and CEO). The company has a board of directors that oversees its operations. The organizational structure is based on the different business segments mentioned above, each with its own management team.
Top Products and Market Share
Key Offerings
- Hardware: Desktops, laptops, servers, networking equipment, and peripherals. Market share data is not readily available at a granular product level. Competitors: CDW, Insight Enterprises, Amazon Business.
- Software: Operating systems, security software, productivity suites, and virtualization software. Market share data is not readily available at a granular product level. Competitors: SHI International, Insight Enterprises, Zones.
- IT Services: Managed services, cloud solutions, security services, and consulting. Competitors: Accenture, IBM, DXC Technology.
Market Dynamics
Industry Overview
The IT solutions and services industry is characterized by constant technological advancements, increasing demand for cloud computing, cybersecurity threats, and evolving regulatory landscapes. Demand for IT services is growing.
Positioning
PC Connection Inc. positions itself as a comprehensive IT solutions provider, catering to diverse customer segments. Its competitive advantages include its established customer base, vendor relationships, and expertise in government and education markets.
Total Addressable Market (TAM)
The global IT spending market is estimated to be in the trillions of USD. PC Connection's position is within a subset of this market, focused on specific verticals and SMBs. The TAM is difficult to precisely define but represents significant opportunities for continued growth. The Total Addressable Market (TAM) for IT spending is estimated to reach $4.6 Trillion in 2023. With a revenue of approximately $3 Billion, PC Connection captures a small fraction of the total IT spending Market.
Upturn SWOT Analysis
Strengths
- Strong customer relationships
- Diverse customer base
- Established presence in government and education sectors
- Comprehensive product and service offerings
- Experienced management team
Weaknesses
- Lower profit margins compared to larger competitors
- Reliance on third-party vendors
- Susceptible to economic cycles
- Inventory risk due to rapidly changing technology
- Intense competition
Opportunities
- Expanding cloud computing services
- Growing cybersecurity market
- Increasing demand for managed services
- Acquiring smaller IT solution providers
- Penetrating new geographic markets
Threats
- Intense competition from larger players
- Economic downturns affecting IT spending
- Rapid technological changes rendering products obsolete
- Cybersecurity breaches impacting customer trust
- Disruptive technologies challenging existing business models
Competitors and Market Share
Key Competitors
- CDW (CDW)
- Insight Enterprises (NSIT)
- SHI International
Competitive Landscape
PC Connection faces intense competition from larger players with greater resources and broader geographic reach. However, it differentiates itself through its focus on specific verticals, strong customer relationships, and comprehensive service offerings.
Major Acquisitions
ValCom
- Year: 2017
- Acquisition Price (USD millions): 69.3
- Strategic Rationale: Increased presence in the Midwest and strengthened its expertise in unified communications and collaboration solutions.
Growth Trajectory and Initiatives
Historical Growth: Historical Growth: PC Connection has historically grown through organic expansion and strategic acquisitions, focusing on expanding its customer base and service offerings.
Future Projections: Future Projections: Analyst estimates suggest continued growth in revenue and profitability driven by demand for IT solutions and cloud services.
Recent Initiatives: Recent Initiatives: PC Connection has been focusing on expanding its cloud solutions, cybersecurity services, and managed services offerings to capitalize on emerging market trends.
Summary
PC Connection is a well-established IT solutions provider with a strong presence in government and education. Its strengths lie in its customer relationships and service offerings, but it faces intense competition and must adapt to technological changes. The company needs to carefully manage its margins and continue to innovate to maintain its competitive edge. Focusing on high growth areas like cloud computing and cybersecurity and increasing market share will likely benefit the company.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Website
- Company SEC Filings (10-K, 10-Q)
- Market Research Reports
- Analyst Reports
Disclaimers:
This analysis is based on available information and is for informational purposes only. It is not financial advice. Market share data is based on estimates and may not be precise. Financial data unavailable due to real-time data restrictions. The AI-Based Fundamental Rating is based on automated analysis and should not be considered definitive.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About PC Connection Inc
Exchange NASDAQ | Headquaters Merrimack, NH, United States | ||
IPO Launch date 1998-03-04 | President & CEO Mr. Timothy J. McGrath | ||
Sector Technology | Industry Electronics & Computer Distribution | Full time employees 2580 | Website https://www.connection.com |
Full time employees 2580 | Website https://www.connection.com | ||
PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. The company operates through three segments, Enterprise Solutions, Business Solutions, and Public Sector Solutions. It offers IT solutions, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories; and portfolio of managed services and professional services, as well as provides services related to design, configuration, and implementation of IT solutions. The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, cnxnhelix.com, and macconnection.com. It serves small to medium-sized businesses that include small office/home office customers; federal, state, and local government and educational institutions; enterprise customers; medium-to-large corporations through outbound inside and field sales; digital, web, and print media advertising; and targeted marketing program to specific customer populations. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
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