CDW (CDW) AI Stock Analysis

• Market Cap: $23.15B
• Dividend Yield: 1.42%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.07
• Revenue Growth: 0.85%
• EPS Growth: 0.36%
• Country: US
• Employees: 15,100
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 2.15
• Shares Outstanding: 131,685,150
• 10 Day Avg. Volume: 743,734
• 30 Day Avg. Volume: 1,048,870
• PEG Ratio: 19.24
• Price to Book (P/B): 10.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.10
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 6.15
• Enterprise Value/Ebitda: 3.77
• 1Y Price Target: $206.43
• Price Target Upside: 14.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $205.00 ▲(13.90%Upside)

CDW's strong financial performance and positive earnings call are the most significant factors driving the overall score. While technical indicators and valuation suggest moderate growth potential, the company's strategic investments in high-growth areas and strong market performance position it well for the future. Challenges in government and education sectors, along with tariff uncertainties, are noted risks but are outweighed by the company's strengths.

Positive Factors

Earnings

CDW is trading higher after reporting first-quarter results that beat consensus estimates on the top and bottom lines.

Financial Performance

Net sales increased 6.7% year-over-year, to $5.20 billion, and 8% year-over-year on an average daily sales basis, well ahead of the $4.93 billion consensus.

Market Position

CDW is positioned positively with advanced solutions in AI, data analytics, advanced networking, cloud solutions, and cybersecurity.

Negative Factors

Government Revenue

Government revenue comprised 10.3% of total revenue during the first quarter of 2025 for CDW, and declined 1.0% year-over-year and 12.3% quarter-over-quarter as policy priorities from the new administration stymied growth.

Macroeconomic Factors

Uncertainty in the macro environment and geopolitical factors might impact enterprise spending and recovery pace.

Regulatory Challenges

The company and several of its peers received letters from the General Services Administration asking them to justify their work with the federal government and urging them to find areas to cut costs.

CDW Business Overview & Revenue Model

Company Description

CDW Corporation is a leading provider of technology products and services for business, government, education, and healthcare sectors. The company offers a broad array of solutions, including hardware, software, and integrated IT services. CDW's diverse product portfolio ranges from personal computing devices and peripherals to advanced technology solutions such as data center and networking services. With a focus on delivering customer-centric solutions, CDW operates through a network of sales and service experts to support its clients' technology needs.

How the Company Makes Money

CDW makes money primarily through the sale of technology products and services. Its revenue model is diversified across several key streams: product sales, which include computers, peripherals, and software; and service offerings, which encompass IT consulting, installation, and managed services. The company's robust vendor partnerships with leading technology manufacturers such as Cisco, Dell, and Microsoft enable it to offer competitive pricing and a wide selection of products to clients. Additionally, CDW leverages its extensive sales and service teams to provide tailored solutions and support, enhancing customer retention and fostering long-term relationships, which contribute significantly to its earnings.

CDW Financial Statement Overview

Summary

CDW shows strong profitability with consistent margins and robust cash flow, despite a leveraged balance sheet. The company exhibits operational efficiency with stable EBIT and EBITDA margins, and maintains a strong return on equity at 46.8%.

Income Statement

CDW shows strong profitability with a consistent gross profit margin around 21.8% and net profit margin near 5.1% over TTM. Revenue growth is moderate, with a slight decline from previous years, but profitability remains solid due to stable EBIT and EBITDA margins. The company's ability to maintain margins in a competitive industry highlights operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 2.58, indicating a reliance on debt, though it's improving. Return on equity is strong at 46.8%, reflecting effective use of equity capital. The equity ratio is relatively low at 15.5%, suggesting a leveraged position, which poses potential risks but is common in the industry.

Cash Flow

CDW's cash flow is robust, with a positive free cash flow and a strong operating cash flow to net income ratio of 1.04, indicating efficient cash conversion. Free cash flow has slightly decreased, suggesting a need for attention, but overall cash generation remains healthy, supporting business operations and debt servicing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.00B	21.38B	23.75B	20.82B	18.47B
Gross Profit	4.60B	4.65B	4.69B	3.57B	3.21B
EBITDA	1.93B	1.95B	2.02B	1.64B	1.59B
Net Income	1.08B	1.10B	1.11B	988.60M	788.50M
Balance Sheet
Total Assets	14.68B	13.28B	13.13B	13.20B	9.34B
Cash, Cash Equivalents and Short-Term Investments	717.70M	588.70M	315.20M	258.10M	1.41B
Total Debt	5.99B	5.81B	6.10B	7.04B	4.10B
Total Liabilities	12.33B	11.24B	11.53B	12.49B	8.05B
Stockholders Equity	2.35B	2.04B	1.60B	705.70M	1.30B
Cash Flow
Free Cash Flow	1.15B	1.45B	1.21B	684.60M	1.16B
Operating Cash Flow	1.28B	1.60B	1.34B	784.60M	1.31B
Investing Cash Flow	-659.20M	-229.60M	-164.50M	-2.77B	-201.00M
Financing Cash Flow	-686.90M	-1.10B	-1.10B	832.80M	138.80M

CDW Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 179.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDW, the sentiment is Positive. The current price of 179.99 is above the 20-day moving average (MA) of 177.82, above the 50-day MA of 179.07, and below the 200-day MA of 181.37, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDW.

CDW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDW	78 Outperform	$23.15B	21.78	48.71%	1.42%	0.85%	0.36%
CTSH	78 Outperform	$36.89B	15.91	16.61%	1.66%	4.09%	14.05%
LDOS	77 Outperform	$20.62B	16.13	31.31%	0.99%	7.75%	325.28%
EPAM	74 Outperform	$9.24B	23.33	11.57%	―	4.72%	-3.06%
IT	73 Outperform	$27.98B	22.48	113.19%	―	5.99%	59.74%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
AUR	55 Neutral	$10.24B	―	-43.43%	―	―	24.41%

CDW Corporate Events

CDW Corporation Holds Annual Stockholders Meeting

On May 20, 2025, CDW Corporation held its Annual Meeting of Stockholders where several key decisions were made. Eleven directors were elected with terms expiring at the 2026 Annual Meeting, the compensation of the company’s named executive officers was approved, Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025, and a proposal regarding stockholder rights to act by written consent was approved.

The most recent analyst rating on (CDW) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on CDW stock, see the CDW Stock Forecast page.

CDW Reports Strong Q1 2025 Financial Results

On May 7, 2025, CDW Corporation announced its first quarter 2025 financial results, reporting net sales of $5,199 million, a 6.7% increase from the previous year. The company also declared a quarterly cash dividend of $0.625 per common share. The growth was driven by strong customer demand for notebooks, mobile devices, desktops, software, and services, despite economic uncertainties. CDW’s performance highlights its robust portfolio and customer-centric strategy, with significant sales increases in the corporate, small business, and public segments, particularly in healthcare and education.