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.

Omnicell, Inc.

Fastly, Inc.

Rapid7, Inc.

Viavi Solutions, Inc.

Squarespace, Inc.

Riot Platforms, Inc.

PROS Holdings, Inc.

Verint Systems, Inc.

Why is PC Connection, Inc. ?

The company is Net-Debt Free

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

Positive results in Jun 26

DIVIDEND PER SHARE(HY) Highest at USD 4.38
RAW MATERIAL COST(Y) Fallen by -2.15% (YoY)
CASH AND EQV(HY) Highest at USD 752.14 MM

With ROE of 9.69%, it has a fair valuation with a 1.76 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 40.00%, its profits have risen by 0.9% ; the PEG ratio of the company is 3.6

High Institutional Holdings at 49.5%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 4.74% over the previous quarter.

Market Beating Performance

The stock has generated a return of 40.00% in the last 1 year, much higher than market (S&P 500) returns of 22.36%

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?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

PC Connection, Inc.

40.0%

1.14

26.70%

S&P 500

22.36%

1.70

13.18%

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

18.37%

Pledged Shares

Institutional Holding

44.76%

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

1.76

EV to EBIT

11.33

EV to EBITDA

10.20

EV to Capital Employed

2.36

EV to Sales

0.42

PEG Ratio

3.55

Dividend Yield

106.78%

ROCE (Latest)

20.86%

ROE (Latest)

9.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.38

RAW MATERIAL COST(Y)

Fallen by -2.15% (YoY

CASH AND EQV(HY)

Highest at USD 752.14 MM

NET SALES(Q)

Highest at USD 854 MM

OPERATING PROFIT(Q)

Highest at USD 45.75 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.36 %

PRE-TAX PROFIT(Q)

Highest at USD 45.54 MM

NET PROFIT(Q)

Highest at USD 33.17 MM

EPS(Q)

Highest at USD 1.31

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 42.03 MM

DEBT-EQUITY RATIO (HY)

Highest at -34.97 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.38 times

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

Dividend per share

Highest at USD 4.38 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 854 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 854 MM has Grown at 18.05%

over average net sales of the previous four periods of USD 723.39 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 45.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 5.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 45.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 45.54 MM has Grown at 45.76%

over average net sales of the previous four periods of USD 31.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 33.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 33.17 MM has Grown at 44.13%

over average net sales of the previous four periods of USD 23.01 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.31

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 752.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.15% (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 42.03 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)

Debt-Equity Ratio

Highest at -34.97 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 14.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio