Pc Connection Inc

Consumer Discretionary
Catalog/Specialty Distribution
www.connection.com

Earnings Score
Moat Score

Market Cap $1.95B
PE 22
Debt $NaN
Cash $167.51M
EV $NaN
FCF $NaN

Earnings

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Sales & Net Margins

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Earnings	$90.15M
EBIT	$122.23M
ROE	10%
ROA	10%
Equity	$897.36M
Growth Stability	83%
PE	21.61
PEG	3.25
PB	2.17
P/S	0.7
Price/Cash	0.09
Net Margins	3%
Gross Margins	19%
Op. Margins	4%
Earnings CAGR	8%
Sales Growth YoY	5%
Sales Growth QoQ	-2%
Sales CAGR	1%
FCF CAGR	0%
Equity CAGR	10%
Earnings Stability	0.69
Earnings Growth YoY	6%
Earnings Growth QoQ	3%

Earnings CAGR 5Y	7%
Sales CAGR 5Y	1%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
Equity CAGR 3Y	10%
Market Cap	$1.95B
Revenue	$2.79B
Dividend Yield	1%
Payout Ratio	11%
Assets	$1.29B
Cash	$167.51M
Shares Outstanding	26.29M
Earnings Score	84%
Moat Score	83%
Working Capital	784.27M
Current Ratio	3.13
Gross Profit	$519.80M
Shares Growth 3y	0%
Equity Growth QoQ	3%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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PC Connection Inc is a provider of information technology solutions. It provides products such as computer systems, software and peripheral equipment, networking communications, and other products and accessories that company purchase from manufacturers and distributors. The company also offers services involving design, configuration, and implementation of IT solutions. It conducts business operations through three business segments namely Business Solutions, Enterprise Solutions, and Public Sector Solutions. The company generates maximum revenue Enterprise Solutions segment.

SEC Filings

Direct access to Pc Connection Inc (CNXN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Pc Connection Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Pc Connection Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 69%

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Pc Connection Inc Discounted Cash Flow

Fully customizable DCF calculator online for Pc Connection Inc.

Years

Calculation mode

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
DCF		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Value	$0

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	12/2023	TTM
Net Margins	2%	2%	2%	2%	2%	3%	2%	2%	3%	3%	3%
ROA	-	12%	12%	10%	11%	12%	7%	9%	11%	10%	10%
ROE	-	12%	11%	11%	12%	14%	9%	10%	12%	10%	10%

Bad Net Margins (3.17%)

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

Safety and Stability

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	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	83%	100%	100%	100%	83%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (83%)

The company has a stability in its earnings that is not too good nor too bad.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	5%	8%	-7%	4%	-8%	12%	8%	-9%	1%
Earnings YoY growth	-	10%	3%	14%	18%	27%	-32%	25%	28%	-7%	7%
Equity YoY growth	-	11%	10%	11%	9%	14%	7%	7%	12%	10%	9%
FCF YoY growth	-	-33%	17%	-65%	-	-	-	-	-	-	-