0.68%
14.40%
5.78%
-8.71%
-12.18%
5.32%
52.63%
AI Spotlight on CDW
Company Description
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada.It operates through three segments: Corporate, Small Business, and Public.The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise, hybrid, and cloud capabilities across data center and networking, digital workspace, and security.
Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage, and others; and software products consists of application suites, security, virtualization, operating systems, and network management.The company also provides advisory and design, software development, implementation, managed, professional, configuration, and telecom services, as well as warranties; mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers.It serves government, education, and healthcare customers; and small, medium, and large business customers.
The company was founded in 1984 and is headquartered in Vernon Hills, Illinois.
Market Data
| Last Price | 199.11 |
| Change Percentage | 0.68% |
| Open | 197.7 |
| Previous Close | 197.76 |
| Market Cap ( Millions) | 26534 |
| Volume | 854308 |
| Year High | 263.37 |
| Year Low | 168.43 |
| M A 50 | 180.71 |
| M A 200 | 211.71 |
Financial Ratios
| FCF Yield | 5.05% |
| Dividend Yield | 1.25% |
| ROE | 50.99% |
| Debt / Equity | 263.46% |
| Net Debt / EBIDTA | 271.87% |
| Price To Book | 11.33 |
| Price Earnings Ratio | 23.98 |
| Price To FCF | 19.81 |
| Price To sales | 1.28 |
| EV / EBITDA | 16.49 |
News
- Jan -16 - Wedgewood Partners: Q4 And 2024 Top Performers And Detractors
- Dec -26 - New Strong Sell Stocks for December 26th
- Dec -24 - CDW Stock Falls 21% in 3 Months: Should You Buy, Sell or Hold?
- Dec -03 - Will CDW's Acquisition of Mission Cloud Services Propel Stock Growth?
- Dec -02 - Great Hill Partners Announces Sale of Mission Cloud Services Inc. to CDW
- Nov -21 - 13 Upcoming Dividend Increases Including 2 Kings
- Nov -20 - D&H Distributing Recognized as CDW 2024 Large Distributor Partner of the Year
- Nov -20 - New Strong Sell Stocks for November 20th
- Nov -19 - Top-down Approach to Generative AI is Crucial as Canadian Employees Surpass Employers in Adoption
- Nov -05 - CDW Corp.: Rating Downgrade On Uncertain Timing Of Growth Recovery
- Oct -30 - CDW Corporation (CDW) Q32024 Earnings Call Transcript
- Oct -30 - CDW's Q3 Earnings & Revenues Miss Estimates, Fall Y/Y, Stock Down
- Oct -30 - CDW (CDW) Reports Q3 Earnings: What Key Metrics Have to Say
- Oct -30 - CDW (CDW) Misses Q3 Earnings and Revenue Estimates
- Oct -30 - CDW misses quarterly revenue estimates on slow hardware solutions demand
- Oct -30 - CDW Reports Third Quarter 2024 Earnings
- Oct -28 - Curious about CDW (CDW) Q3 Performance? Explore Wall Street Estimates for Key Metrics
- Oct -25 - CDW to Report Q3 Earnings: Here's What Investors Should Know
- Oct -25 - CDW Announces Succession Plan for Chief Commercial and Operating Officer
- Oct -06 - 3 Dividend Growth Stocks Set to Supercharge Your Portfolio
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Corporate Segment
Expected Growth : 4.5 %
What the company do ?
Why we expect these perspectives ?
CDW Corporation's Corporate Segment growth of 4.5% is driven by increasing demand for IT solutions and services, particularly in cloud computing, cybersecurity, and digital transformation. Strong relationships with top vendors, such as Microsoft and Cisco, contribute to revenue growth. Additionally, the segment benefits from a diverse customer base across various industries, including healthcare, education, and government.
Segment n°2 -> Public
Expected Growth : 4.8 %
What the company do ?
Why we expect these perspectives ?
CDW Corporation's 4.8% growth is driven by increasing demand for digital transformation, cloud computing, and cybersecurity solutions. Strong partnerships with top IT vendors, a robust e-commerce platform, and a skilled sales force also contribute to growth. Additionally, the company's strategic acquisitions and expansion into new markets, such as the UK and Canada, further fuel growth.
Segment n°3 -> Other
Expected Growth : 4.2 %
What the company do ?
Why we expect these perspectives ?
CDW Corporation's 4.2% growth is driven by increasing demand for digital transformation, cloud computing, and cybersecurity solutions. Strong relationships with top vendors, a diversified customer base, and strategic acquisitions also contribute to growth. Additionally, the company's focus on customer experience, employee expertise, and operational efficiency enables it to capitalize on emerging trends and opportunities.
Segment n°4 -> Small Business
Expected Growth : 4.0 %
What the company do ?
Why we expect these perspectives ?
CDW Corporation's Small Business segment growth of 4.0% is driven by increasing adoption of cloud-based solutions, rising demand for cybersecurity and digital transformation, and growing need for IT infrastructure upgrades. Additionally, CDW's strategic partnerships and expanded product offerings are contributing to the segment's growth.
Cdw Corporation Products
| Product Range | What is it ? |
|---|---|
| Hardware | CDW offers a wide range of hardware products from leading manufacturers, including desktops, laptops, servers, storage, and networking equipment. |
| Software | CDW provides a broad portfolio of software solutions, including operating systems, productivity suites, security software, and virtualization tools. |
| Cloud Services | CDW offers cloud-based solutions, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) from leading cloud providers. |
| Cybersecurity | CDW provides a range of cybersecurity solutions, including threat detection, incident response, and security consulting services. |
| Networking | CDW offers networking solutions, including routers, switches, firewalls, and wireless networks from leading manufacturers. |
| Data Center | CDW provides data center solutions, including data center design, implementation, and management services. |
| Collaboration | CDW offers collaboration solutions, including video conferencing, unified communications, and audio-visual solutions. |
| Digital Workspace | CDW provides digital workspace solutions, including virtual desktop infrastructure, mobility, and endpoint management services. |
| IT Consulting | CDW offers IT consulting services, including IT strategy, assessment, and implementation services. |
CDW Corporation's Porter Forces
Threat Of Substitutes
CDW Corporation operates in the IT industry, where substitutes are limited. However, cloud computing and managed services are becoming increasingly popular, which could pose a threat to CDW's traditional business model.
Bargaining Power Of Customers
CDW Corporation has a large customer base, including government agencies, education institutions, and businesses. While customers have some bargaining power, CDW's diversified customer base and strong relationships mitigate this threat.
Bargaining Power Of Suppliers
CDW Corporation relies on a few large suppliers, such as HP, Cisco, and Microsoft. While suppliers have some bargaining power, CDW's strong relationships and diversified supplier base reduce this threat.
Threat Of New Entrants
The IT industry has high barriers to entry, including significant capital requirements and complex technology infrastructure. New entrants would struggle to replicate CDW's scale, expertise, and relationships, making this threat low.
Intensity Of Rivalry
The IT industry is highly competitive, with many established players competing for market share. CDW Corporation faces intense rivalry from companies like Insight Enterprises, Presidio, and Connection, which could lead to pricing pressure and reduced margins.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 73.43% |
| Debt Cost | 5.12% |
| Equity Weight | 26.57% |
| Equity Cost | 9.18% |
| WACC | 6.20% |
| Leverage | 276.37% |
CDW Corporation : Quality Control
CDW Corporation passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CTSH | Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Healthcare; Products … |
| FI | Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. The Acceptance segment provides point-of-sale merchant acquiring and … |
| IT | Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. … |
| FIS | Fidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant … |
| IBM | International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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FIS
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