CDW Corporation
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions,…
What to know about CDW
CDW Corporation is a large Technology company with a mixed financial profile. It scores well on valuation and dividends, but size is worth keeping an eye on.
Should you consider CDW?
Based on 31 financial metrics and sector comparison. Not financial advice.
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CDW Corporation is a large-cap Technology company with a mixed overall financial profile — it is in the lower half of its Technology peers (56 of 82).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation looks attractive — the stock is priced reasonably relative to its earnings and sales compared to most peers. You're not overpaying for the business.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.02%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Technology sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how CDW compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 15.64 | Top 25% |
| Forward P/E | 11.03 | Top 25% |
| PEG Ratio | 1.33 | Above avg |
| Price to Sales | 0.72 | Top 25% |
| Price to Book | 6.43 | Average |
| EV/EBITDA | 11.19 | Top 25% |
| Earnings Yield | 6.40% | Top 25% |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 21.57% | Below avg |
| Operating Margin | 6.62% | Below avg |
| Net Profit Margin | 4.70% | Below avg |
| Return on Equity | 44.16% | Top 25% |
| Return on Invested Capital | 6.70% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 9.20% | Above avg |
| Revenue Growth (3Y CAGR) | -1.89% | Below avg |
| EPS Growth (YoY) | 7.70% | Average |
| Free Cash Flow Growth | -5.77% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.17 | Average |
| Debt to Equity | 2.41 | Below avg |
| Interest Coverage | 7.28 | Above avg |
| Altman Z-Score | 2.46 | Average |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 1.94% | Average |
| Payout Ratio | 30.57% | Above avg |
| Dividend Growth (5Y) | -5.81% | Above avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 6.56% | Above avg |
| OCF to Sales | 5.21% | Below avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.99 | Average |
| Volatility (30-Day) | 56.25% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 8.01% | Below avg |
| Avg. Analyst Rating | 1.82 | Above avg |
| Target Upside % | 14.75% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 16.4B | Below avg |
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