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PC Connection Inc (CNXN)



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Upturn Advisory Summary
08/28/2025: CNXN (1-star) is currently NOT-A-BUY. Pass it for now.
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 -6.19% | Avg. Invested days 54 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.63B USD | Price to earnings Ratio 19.5 | 1Y Target Price 76 |
Price to earnings Ratio 19.5 | 1Y Target Price 76 | ||
Volume (30-day avg) 1 | Beta 0.72 | 52 Weeks Range 56.56 - 76.55 | Updated Date 08/29/2025 |
52 Weeks Range 56.56 - 76.55 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 0.77% | Basic EPS (TTM) 3.29 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-07-30 | When - | Estimate 0.97 | Actual 0.97 |
Profitability
Profit Margin 2.97% | Operating Margin (TTM) 4.07% |
Management Effectiveness
Return on Assets (TTM) 4.95% | Return on Equity (TTM) 9.78% |
Valuation
Trailing PE 19.5 | Forward PE 18.59 | Enterprise Value 1282990652 | Price to Sales(TTM) 0.56 |
Enterprise Value 1282990652 | Price to Sales(TTM) 0.56 | ||
Enterprise Value to Revenue 0.44 | Enterprise Value to EBITDA 11.3 | Shares Outstanding 25389000 | Shares Floating 11152881 |
Shares Outstanding 25389000 | Shares Floating 11152881 | ||
Percent Insiders 56.07 | Percent Institutions 42.91 |
Upturn AI SWOT
PC Connection Inc

Company Overview
History and Background
PC Connection Inc., founded in 1982, started as a direct marketer of PC hardware and software. Over time, it has evolved into a leading IT solutions provider, serving businesses, government, and educational institutions.
Core Business Areas
- Business Solutions: Provides IT solutions and services including hardware, software, and cloud solutions to small and medium-sized businesses.
- Enterprise Solutions: Offers comprehensive IT solutions to large enterprises, focusing on complex infrastructure and security needs.
- Public Sector Solutions: Caters to government and educational institutions, providing IT products and services compliant with specific regulations.
Leadership and Structure
The company is led by Timothy J. McGrath (President and CEO). PC Connection operates with a structured sales and service delivery model organized by the business segments mentioned above.
Top Products and Market Share
Key Offerings
- Hardware: Desktops, laptops, servers, networking equipment. Market share varies by product category. Competitors include Dell Technologies (DELL), HP Inc. (HPQ), and Lenovo (LNVGY).
- Software: Operating systems, security software, productivity suites. Market share varies by software type. Competitors include Microsoft (MSFT), Adobe (ADBE), and Symantec (NLOK).
- Cloud Solutions: Cloud-based infrastructure, platform, and software services. Market share is growing rapidly. Competitors include Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud Platform (GOOGL).
Market Dynamics
Industry Overview
The IT solutions market is dynamic, driven by cloud adoption, cybersecurity threats, and digital transformation initiatives. Growth is expected to continue, fueled by increasing IT spending.
Positioning
PC Connection positions itself as a trusted advisor and solutions provider, offering a wide range of products and services, and focusing on customer relationships. Their strength lies in providing comprehensive solutions.
Total Addressable Market (TAM)
The global IT spending is projected to reach trillions of USD. PC Connection is positioned to capture a portion of this TAM by focusing on specific segments like SMBs, enterprises, and the public sector.
Upturn SWOT Analysis
Strengths
- Strong customer relationships
- Broad product portfolio
- Experienced sales and service teams
- Established presence in key markets
Weaknesses
- Reliance on vendor partnerships
- Exposure to economic cycles
- Competitive pricing pressures
- Need for continuous technology adaptation
Opportunities
- Growth in cloud computing
- Increasing cybersecurity threats
- Digital transformation initiatives
- Expansion into new markets
Threats
- Intense competition
- Rapid technological changes
- Economic downturns
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- CDW (CDW)
- Insight Enterprises (NSIT)
- SHI International Corp (Private)
Competitive Landscape
PC Connection competes with larger IT solutions providers. Its advantage lies in its focus on customer relationships and specialized solutions, but it faces pricing pressure from larger competitors. They need to stay competitive with solution integration in order to maintain market share.
Major Acquisitions
ValCom
- Year: 2007
- Acquisition Price (USD millions): 27.5
- Strategic Rationale: Expanded product and service offerings and enhanced geographic reach.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends data would be inserted here upon real-time analysis.
Future Projections: Future growth projections data would be inserted here upon real-time analysis.
Recent Initiatives: Recent strategic initiatives data would be inserted here upon real-time analysis.
Summary
PC Connection Inc. is a well-established IT solutions provider with a strong customer focus. While facing intense competition and technological changes, they are well-positioned to capitalize on growth opportunities in cloud computing and cybersecurity. Success relies on continuous adaptation and innovation. Market growth projections are high and will require solid strategies to achieve these goals.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market data and analysis are subject to change.
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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