PC Connection, Inc. (CNXN) 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

Credo Technology Group Holding Ltd.

Q2 Holdings, Inc.

PC Connection, Inc.

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Fastly, Inc.

Rapid7, Inc.

Omnicell, Inc.

Viavi Solutions, Inc.

Squarespace, Inc.

PROS Holdings, Inc.

Verint Systems, Inc.

Why is PC Connection, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.09% and Operating profit at 7.58% over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 65.44 MM
ROCE(HY) Lowest at 9.19%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.55 times

With ROE of 9.69%, it has a fair valuation with a 1.85 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.99%, its profits have risen by 0.9% ; the PEG ratio of the company is 3.7

High Institutional Holdings at 44.72%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -8.99% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PC Connection, Inc. 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 PC Connection, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PC Connection, Inc.

-5.89%

-0.50

25.99%

S&P 500

16.12%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.09%

EBIT Growth (5y)

7.58%

EBIT to Interest (avg)

98.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

3.23

Tax Ratio

25.88%

Dividend Payout Ratio

18.35%

Pledged Shares

Institutional Holding

44.72%

ROCE (avg)

17.04%

ROE (avg)

10.01%

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

1.85

EV to EBIT

12.12

EV to EBITDA

10.91

EV to Capital Employed

2.54

EV to Sales

0.44

PEG Ratio

3.74

Dividend Yield

70.21%

ROCE (Latest)

20.91%

ROE (Latest)

9.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 18.29%

RAW MATERIAL COST(Y)

Fallen by -8.48% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 4.55

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 65.44 MM

ROCE(HY)

Lowest at 9.19%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.55 times

Here's what is working for PC Connection, Inc.

Dividend per share

Highest at USD 4.55

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 18.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -8.48% (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 PC Connection, Inc.

Operating Cash Flow

Lowest at USD 65.44 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 4.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio