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Upturn AI SWOT - About
CNXN 
PC Connection Inc (CNXN)
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Upturn Advisory Summary
06/30/2025: 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 -4.83% | Avg. Invested days 50 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.68B USD | Price to earnings Ratio 20.01 | 1Y Target Price 76 |
Price to earnings Ratio 20.01 | 1Y Target Price 76 | ||
Volume (30-day avg) 1 | Beta 0.7 | 52 Weeks Range 56.70 - 76.74 | Updated Date 06/30/2025 |
52 Weeks Range 56.70 - 76.74 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 0.91% | Basic EPS (TTM) 3.3 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.05% | Operating Margin (TTM) 2.49% |
Management Effectiveness
Return on Assets (TTM) 5.27% | Return on Equity (TTM) 10.11% |
Valuation
Trailing PE 20.01 | Forward PE 19.16 | Enterprise Value 1337974597 | Price to Sales(TTM) 0.58 |
Enterprise Value 1337974597 | Price to Sales(TTM) 0.58 | ||
Enterprise Value to Revenue 0.47 | Enterprise Value to EBITDA 11.71 | Shares Outstanding 25397200 | Shares Floating 11161578 |
Shares Outstanding 25397200 | Shares Floating 11161578 | ||
Percent Insiders 56.69 | Percent Institutions 43.87 |
Analyst Ratings
Rating 1 | Target Price 76 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
PC Connection Inc
Company Overview
History and Background
PC Connection, Inc. was founded in 1982. Initially a catalog reseller of PC components, it has evolved into a solutions provider for businesses, government, and education. It went public in 1998.
Core Business Areas
- Business Solutions: Provides IT solutions including hardware, software, and services to small and medium-sized businesses (SMBs).
- MoreDirect: Focuses on serving larger enterprise customers with complex IT needs and customized solutions.
- GovConnection: Serves federal, state, and local government agencies, as well as educational institutions, with IT products and services.
Leadership and Structure
Tim McGrath is the President and CEO. The company has a typical corporate structure with departments for sales, marketing, finance, operations, and technology.
Top Products and Market Share
Key Offerings
- Product Name 1: Hardware (PCs, servers, networking equipment): Resells hardware from major manufacturers. Market share is fragmented across many vendors and resellers. Competitors include CDW, Insight Enterprises, and large direct vendors like Dell and HP.
- Product Name 2: Software (Operating systems, security software, productivity suites): Resells software licenses and subscriptions. Market share varies by software category. Competitors include SHI International, SoftwareONE and other VARs.
- Product Name 3: Services (IT consulting, managed services, cloud solutions): Provides IT services to businesses. Market share is fragmented across regional and national providers. Competitors include Accenture, Tata Consultancy Services, and smaller MSPs.
Market Dynamics
Industry Overview
The IT solutions and services industry is competitive and constantly evolving, driven by technological advancements, cloud adoption, and cybersecurity concerns. The industry is trending towards managed services and cloud-based solutions.
Positioning
PC Connection positions itself as a comprehensive IT solutions provider with a focus on customer service and technical expertise. Its competitive advantage lies in its diversified customer base and ability to serve various market segments.
Total Addressable Market (TAM)
The global IT spending market is estimated to be in the trillions of dollars. PC Connection's TAM is the portion of this market focused on SMBs, enterprises, government, and education. They are positioned as a key reseller, focusing on providing the services and specific products that their customers need.
Upturn SWOT Analysis
Strengths
- Diversified customer base
- Strong relationships with vendors
- Experienced sales and technical teams
- Established brand reputation
Weaknesses
- Reliance on third-party vendors
- Competitive pricing pressure
- Relatively low profit margins
- Inventory Management
Opportunities
- Growth in cloud computing
- Increased demand for cybersecurity solutions
- Expansion into new markets
- Strategic acquisitions
Threats
- Economic downturn
- Technological obsolescence
- Increased competition from direct vendors
- Cybersecurity breaches
Competitors and Market Share
Key Competitors
- CDW
- Insight Enterprises
- SHI International
Competitive Landscape
PC Connection competes with larger and smaller IT solutions providers. It differentiates itself through customer service and specialized solutions for specific industries.
Major Acquisitions
ValCom
- Year: 2017
- Acquisition Price (USD millions): 69.3
- Strategic Rationale: Expanded PC Connection's presence in the K-12 education market.
Growth Trajectory and Initiatives
Historical Growth: Growth has been moderate, driven by acquisitions and organic sales growth in key market segments.
Future Projections: Analysts predict continued growth in revenue and earnings, driven by cloud adoption and cybersecurity demand.
Recent Initiatives: Focus on expanding managed services offerings, strategic partnerships, and acquisitions to enhance capabilities.
Summary
PC Connection is a moderately strong IT solutions provider with a diverse customer base. Its strengths lie in vendor relationships and customer focus, but it faces challenges from pricing pressure and reliance on vendors. Growth opportunities exist in cloud and cybersecurity, but economic downturns and competition pose threats.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Market Research Reports
- Analyst Reports
- Company Website
Disclaimers:
This analysis is based on available information and subject to change. It is not financial advice.
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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