Cdw Corp

CDW

Retail-Catalog & Mail-Order Houses

Mkt Cap

$30.23B

PE

27.72

Debt

$6.263B

Cash

$803.8M

EV

$35.69B

FCF

$1.527B

Market Cap

$30.23B

P/E Ratio

27.72

Debt

$6.263B

Cash

$803.8M

EV

$35.69B

FCF

$1.527B

Charts data: {"Earnings":[{"time":"2014-12-30","value":244900000},{"time":"2015-12-30","value":403100000},{"time":"2016-12-30","value":424400000},{"time":"2017-12-30","value":523000000},{"time":"2018-12-30","value":643000000},{"time":"2019-12-30","value":736800000},{"time":"2020-12-30","value":788500000},{"time":"2021-12-30","value":988600000},{"time":"2022-12-30","value":1114500000},{"time":"2023-12-30","value":1104300000}],"Sales":[{"time":"2014-12-30","value":12074500000},{"time":"2015-12-30","value":12988700000},{"time":"2016-12-30","value":13981900000},{"time":"2017-12-30","value":15191500000},{"time":"2018-12-30","value":16240500000},{"time":"2019-12-30","value":18032400000},{"time":"2020-12-30","value":18467500000},{"time":"2021-12-30","value":20820800000},{"time":"2022-12-30","value":23748700000},{"time":"2023-12-30","value":21376000000}],"Net Margins":[{"time":"2014-12-30","value":0.020282413350449294},{"time":"2015-12-30","value":0.031034668596549308},{"time":"2016-12-30","value":0.030353528490405454},{"time":"2017-12-30","value":0.03442714675970115},{"time":"2018-12-30","value":0.039592377081986395},{"time":"2019-12-30","value":0.04085978571903906},{"time":"2020-12-30","value":0.04269662921348315},{"time":"2021-12-30","value":0.047481364789057096},{"time":"2022-12-30","value":0.046928884528416294},{"time":"2023-12-30","value":0.05166074101796407}],"Assets":[{"time":"2014-12-30","value":6099900000},{"time":"2015-12-30","value":6755300000},{"time":"2016-12-30","value":6948400000},{"time":"2017-12-30","value":6956600000},{"time":"2018-12-30","value":7167700000},{"time":"2019-12-30","value":7999400000},{"time":"2020-12-30","value":9344700000},{"time":"2021-12-30","value":13199400000},{"time":"2022-12-30","value":13131500000},{"time":"2023-12-30","value":13284600000}],"Stockholders Equity":[{"time":"2014-12-30","value":936500000},{"time":"2015-12-30","value":1095900000},{"time":"2016-12-30","value":1045500000},{"time":"2017-12-30","value":982900000},{"time":"2018-12-30","value":975200000},{"time":"2019-12-30","value":960300000},{"time":"2020-12-30","value":1297100000},{"time":"2021-12-30","value":705700000},{"time":"2022-12-30","value":1603300000},{"time":"2023-12-30","value":2042500000}],"ROE":[{"time":"2014-12-30","value":0.2615056059797117},{"time":"2015-12-30","value":0.36782553152659914},{"time":"2016-12-30","value":0.4059301769488283},{"time":"2017-12-30","value":0.532098891036728},{"time":"2018-12-30","value":0.6593519278096801},{"time":"2019-12-30","value":0.767260231177757},{"time":"2020-12-30","value":0.6078945339603732},{"time":"2021-12-30","value":1.400878560294743},{"time":"2022-12-30","value":0.6951287968564835},{"time":"2023-12-30","value":0.5406609547123623}],"ROA":[{"time":"2014-12-30","value":0.11032967753569731},{"time":"2015-12-30","value":0.10983968143531746},{"time":"2016-12-30","value":0.11789764550112256},{"time":"2017-12-30","value":0.12450047436966334},{"time":"2018-12-30","value":0.13774293008914992},{"time":"2019-12-30","value":0.14171062829712228},{"time":"2020-12-30","value":0.12618917675259772},{"time":"2021-12-30","value":0.1075048865857539},{"time":"2022-12-30","value":0.13214027338841716},{"time":"2023-12-30","value":0.1265299670294928}]}

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 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.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Cdw Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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	$1.527B	$1.796B	$2.086B	$2.395B	$2.715B	$3.041B	$3.363B	$3.672B	$3.959B	$4.212B	$4.422B	$44.22B
DCF		$1.562B	$1.578B	$1.575B	$1.553B	$1.512B	$1.454B	$1.381B	$1.294B	$1.197B	$1.093B	$10.93B
Value	$25.13B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 16%

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	3.1%	3%	3.4%	4%	4.1%	4.3%	4.7%	4.7%	5.2%	5.2%
ROA	11%	12%	12%	14%	14%	13%	11%	13%	13%	13%
ROE	37%	41%	53%	66%	77%	61%	140%	70%	54%	51%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.49%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.24%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.86%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.3%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +77.85%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.05%.

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.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	17.54	6.08	4.71	3.97	4.26	3.48	10.24	4.98	4.33	4.10
Debt Equity	3.00	3.14	3.34	3.33	3.51	3.10	9.93	3.75	3.08	2.93
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.10.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.31.

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.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	6.3%	5.6%	5%	-10%	-0.79%
Net Income	15%	11%	12%	-0.92%	-4.2%
Stockholders Equity	10%	16%	16%	27%	6.6%
FCF	15%	12%	7.8%	20%	-2.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.65%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.79%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +11.42%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -4.19%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +15.93%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +6.56%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +12.09%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.73%.