CDW Corp. (CDW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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CDW Corp.

Why is CDW Corp. ?

High Management Efficiency with a high ROCE of 22.94%

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 1,205.2 MM
ROCE(HY) Lowest at 43.02%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.51 times

With ROCE of 20.99%, it has a fair valuation with a 3.23 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.95%, its profits have fallen by -2.8%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.8% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CDW Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CDW Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CDW Corp.

-28.95%

-1.39

34.63%

S&P 500

20.12%

1.04

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.96%

EBIT Growth (5y)

6.95%

EBIT to Interest (avg)

7.91

Debt to EBITDA (avg)

2.91

Net Debt to Equity (avg)

2.37

Sales to Capital Employed (avg)

2.56

Tax Ratio

25.72%

Dividend Payout Ratio

31.00%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

22.94%

ROE (avg)

72.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.25

EV to EBIT

15.37

EV to EBITDA

13.35

EV to Capital Employed

3.23

EV to Sales

1.19

PEG Ratio

Dividend Yield

164.56%

ROCE (Latest)

20.99%

ROE (Latest)

44.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 213.13 %

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 30.03 times

DIVIDEND PER SHARE(HY)

Highest at USD 3.51

OPERATING PROFIT MARGIN(Q)

Highest at 9.2 %

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,205.2 MM

ROCE(HY)

Lowest at 43.02%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.51 times

INTEREST(Q)

Highest at USD 58.5 MM

Here's what is working for CDW Corp.

Debt-Equity Ratio

Lowest at 213.13 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit Margin

Highest at 9.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 30.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 3.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -2.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for CDW Corp.

Operating Cash Flow

Lowest at USD 1,205.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 3.51 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at USD 58.5 MM

in the last five periods and Increased by 6.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)