Cdw Corp
CDW
Retail-Catalog & Mail-Order Houses
Mkt Cap
$28.65BPE
26.15Debt
$5.772BCash
$440.7MEV
$33.98BFCF
$1.159BP/E Ratio
26.15Debt
$5.772BCash
$440.7MEV
$33.98BFCF
$1.159BCDW 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 hybrid infrastructure, digital experience, 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, partner, and telecom services, as well as warranties; delivers and manages 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. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.
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DCF
Discounted Cash Flow Valuation of Cdw Corp
Value
Growth
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%
Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.159B | $1.361B | $1.58B | $1.812B | $2.053B | $2.297B | $2.539B | $2.771B | $2.987B | $3.177B | $3.336B | $33.36B |
| DCF | $1.183B | $1.194B | $1.191B | $1.174B | $1.142B | $1.098B | $1.042B | $976.3M | $903.2M | $824.6M | $8.246B | |
| Value | $18.97B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 18%
Earnings Stability 94%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 2% | 3.1% | 3% | 3.4% | 4% | 4.1% | 4.3% | 4.7% | 4.7% | 5% |
| ROA | 11% | 11% | 12% | 12% | 14% | 14% | 13% | 11% | 13% | 13% |
| ROE | 26% | 37% | 41% | 53% | 66% | 77% | 61% | 140% | 70% | 61% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +4.2%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.25%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.83%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.19%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +77.71%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +8.23%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 8.44 | 17.54 | 6.08 | 4.71 | 3.97 | 4.26 | 3.48 | 10.24 | 4.98 | 4.98 |
| Debt Equity | 3.43 | 3.00 | 3.14 | 3.34 | 3.33 | 3.51 | 3.10 | 9.93 | 3.75 | 3.19 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.98.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.55.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 9% | 9.3% | 9.6% | 14% | 0.25% |
| Net Income | 16% | 16% | 15% | 13% | -6.8% |
| Stockholders Equity | 5.6% | 10% | 19% | 130% | 4.6% |
| FCF | 31% | 12% | 15% | 76% | -0.96% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +9.35%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.25%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +16.34%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -6.83%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +10.28%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.64%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +11.64%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.96%.