1.75%
7.52%
17.01%
4.07%
15.45%
71.81%
49.44%
AI Spotlight on CNXN
Company Description
PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions.The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions.It offers IT products, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories, as well as provides services related to design, configuration, and implementation of IT solutions.
The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com.It serves small to medium-sized businesses (SMBs) that include small office/home office customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales, and marketing programs targeted to specific customer populations, as well as through digital, web, and print media advertising.The company was founded in 1982 and is headquartered in Merrimack, New Hampshire.
Market Data
| Last Price | 74.48 |
| Change Percentage | 1.75% |
| Open | 71.2 |
| Previous Close | 73.2 |
| Market Cap ( Millions) | 1958 |
| Volume | 17728 |
| Year High | 77.19 |
| Year Low | 57.47 |
| M A 50 | 71.64 |
| M A 200 | 69.12 |
Financial Ratios
| FCF Yield | 7.85% |
| Dividend Yield | 0.54% |
| ROE | 10.40% |
| Debt / Equity | 0.23% |
| Net Debt / EBIDTA | -143.26% |
| Price To Book | 2.18 |
| Price Earnings Ratio | 21.68 |
| Price To FCF | 12.73 |
| Price To sales | 0.7 |
| EV / EBITDA | 15.48 |
News
- Jan -29 - PC Connection (CNXN) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
- Oct -30 - PC Connection (CNXN) Q3 Earnings and Revenues Miss Estimates
- Oct -30 - PC Connection, Inc. (CNXN) Q3 2024 Earnings Call Transcript
- Sep -26 - E-Commerce to Boost Holiday Retail Sales: 4 Stocks With Room to Grow
- Sep -25 - Bet on Winning DuPont Analysis & Pick 4 Quality Stocks
- Aug -22 - Bet on Winning DuPont Analysis & Pick 4 Quality Stocks
- Aug -05 - PC Connection (CNXN) Is Up 5.70% in One Week: What You Should Know
- Aug -05 - Bet on Winning DuPont Analysis & Pick 3 Quality Stocks
- Aug -01 - PC Connection, Inc. (CNXN) Q2 2024 Earnings Call Transcript
- Jul -31 - PC Connection (CNXN) Beats Q2 Earnings and Revenue Estimates
- Jun -14 - Connection and Microsoft Partner with Aviation Museum of NH to Inspire Tomorrow's Aerospace Professionals
- May -07 - Connection Named to Newsweek's Most Trustworthy Companies in America 2024 List
- May -02 - PC Connection, Inc. (CNXN) Q1 2024 Earnings Call Transcript
- May -01 - Connection (CNXN) Reports First Quarter 2024 Results
- Apr -24 - PC Connection (CNXN) Earnings Expected to Grow: Should You Buy?
- Feb -15 - PC Connection, Inc. (CNXN) Q4 2023 Earnings Call Transcript
- Feb -14 - Connection (CNXN) Reports Fourth Quarter and Full Year 2023 Results
- Nov -16 - Connection Announces Winners of 2023 IT Superhero Awards
- Nov -02 - PC Connection, Inc. (CNXN) Q3 2023 Earnings Call Transcript
- Oct -27 - Is Phillips 66 (PSX) Stock Undervalued Right Now?
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Enterprise Solutions
Expected Growth : 3 %
What the company do ?
Enterprise Solutions from PC Connection, Inc. provides customized IT solutions and services to businesses, governments, and educational institutions, helping them optimize their technology infrastructure and improve operational efficiency.
Why we expect these perspectives ?
PC Connection's Enterprise Solutions segment growth is driven by increasing demand for IT infrastructure, cybersecurity, and cloud services from large and mid-sized businesses. Additionally, the company's strategic partnerships with leading technology vendors, such as Cisco, HP, and Microsoft, contribute to its growth. Furthermore, the company's expertise in providing customized solutions and services to meet the unique needs of its clients also fuels its growth.
Segment n°2 -> Business Solutions
Expected Growth : 1.5 %
What the company do ?
Business Solutions from PC Connection, Inc. provides IT products and services to businesses, governments, and educational institutions, offering customized solutions for their technology needs.
Why we expect these perspectives ?
PC Connection's 1.5% growth in Business Solutions is driven by increasing demand for IT infrastructure, cybersecurity, and cloud services from small to medium-sized businesses. Additionally, the company's strategic partnerships with leading technology vendors, such as Microsoft and Cisco, have expanded its product offerings and enhanced its competitive position.
Segment n°3 -> Public Sector Solutions
Expected Growth : 2.5 %
What the company do ?
Public Sector Solutions from PC Connection, Inc. provides technology products and services to government, education, and healthcare organizations, helping them achieve their goals efficiently.
Why we expect these perspectives ?
Public Sector Solutions from PC Connection, Inc. growth driven by increasing government IT spending, digital transformation initiatives, and cybersecurity concerns. Strong demand for cloud-based services, data analytics, and IT infrastructure modernization also contribute to the 2.5% growth rate.
Pc Connection, Inc. Products
| Product Range | What is it ? |
|---|---|
| IT Products | PC Connection, Inc. offers a wide range of IT products including desktops, laptops, tablets, smartphones, servers, storage systems, and networking equipment from top manufacturers. |
| Software Solutions | The company provides a variety of software solutions including operating systems, productivity software, security software, and virtualization software from leading vendors. |
| Cloud Services | PC Connection, Inc. offers cloud services such as infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) from top cloud providers. |
| IT Services | The company provides a range of IT services including consulting, implementation, and managed services to help businesses design, deploy, and manage their IT infrastructure. |
| Cybersecurity Solutions | PC Connection, Inc. offers a range of cybersecurity solutions including threat detection, incident response, and penetration testing to help businesses protect themselves from cyber threats. |
| Data Center Solutions | The company provides data center solutions including data center infrastructure, virtualization, and consolidation to help businesses optimize their data center operations. |
PC Connection, Inc.'s Porter Forces
Threat Of Substitutes
PC Connection, Inc. faces moderate threat from substitutes, as customers have limited alternatives for IT products and services. However, the company's focus on providing customized solutions and strong relationships with suppliers helps mitigate this threat.
Bargaining Power Of Customers
PC Connection, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's customized solutions and strong relationships with suppliers make it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
PC Connection, Inc. has a moderate level of dependence on its suppliers, particularly for IT products. However, the company's strong relationships with suppliers and its ability to negotiate prices help mitigate this threat.
Threat Of New Entrants
The IT industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to compete with established players like PC Connection, Inc.
Intensity Of Rivalry
The IT industry is highly competitive, with many established players competing for market share. PC Connection, Inc. faces intense competition from rivals, which can lead to pricing pressure and reduced margins.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 0.58% |
| Debt Cost | 3.95% |
| Equity Weight | 99.42% |
| Equity Cost | 7.35% |
| WACC | 7.33% |
| Leverage | 0.58% |
PC Connection, Inc. : Quality Control
PC Connection, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| SNPO | Snap One Holdings Corp. provides smart living solutions in the United States and internationally. The company offers end-to-end product and software ecosystem and technology-enabled workflow solutions. It also provides connected … |
| AVT | Avnet, Inc., a technology solutions company, markets, sells, and distributes electronic components. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes … |
| SCSC | ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology … |
| LYTS | LSI Industries Inc. manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia, and Latin America. It operates in two segments, Lighting and Display … |
| CLMB | Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Avnet
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LSI Industries
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Climb Global Solutions
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PC Connection
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ScanSource
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