CDW (CDW) AI Stock Analysis

• Market Cap: $20.55B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.19
• Revenue Growth: 4.47%
• EPS Growth: -1.84%
• Country: US
• Employees: 15,100
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.60
• Shares Outstanding: 131,060,750
• 10 Day Avg. Volume: 1,401,023
• 30 Day Avg. Volume: 1,418,940
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 14.98
• 1Y Price Target: $197.17
• Price Target Upside: 25.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $177.00 ▲(12.88% Upside)

CDW's overall stock score reflects strong financial performance and positive earnings call highlights, particularly in key growth segments. However, technical indicators suggest weak momentum, and high leverage poses a financial risk. The valuation is moderate, with no significant discount or premium.

Positive Factors

Revenue Growth

CDW's robust revenue growth, driven by strategic diversification and strong execution, positions it well for continued market expansion.

Segment Performance

Strong performance in key segments like corporate and healthcare indicates effective market penetration and growth potential.

Cash Flow Generation

Robust cash flow generation supports strategic investments and shareholder returns, enhancing long-term financial stability.

Negative Factors

High Leverage

High leverage could constrain financial flexibility and increase risk, potentially impacting long-term financial health.

Education Market Decline

Decline in education market due to funding changes may hinder growth in this segment, affecting overall revenue diversification.

Gross Margin Pressure

Pressure on gross margins could impact profitability, necessitating cost management to maintain financial performance.

CDW Business Overview & Revenue Model

Company Description

CDW is a leading provider of technology solutions and services for business, government, education, and healthcare sectors. The company offers a wide range of products including hardware, software, and integrated IT solutions that help organizations optimize their technology investments. CDW partners with top technology manufacturers to deliver tailored solutions that encompass cloud computing, cybersecurity, data center management, and more, positioning itself as a one-stop shop for IT needs.

How the Company Makes Money

CDW generates revenue primarily through the sale of technology products and services. Its revenue model is multifaceted, with key revenue streams including direct sales of hardware and software, professional services, and IT solutions. The company benefits from strong relationships with major technology vendors, allowing it to provide a comprehensive array of products at competitive prices. Additionally, CDW offers value-added services such as IT consulting, installation, and support, which further enhance its revenue potential. Strategic partnerships and alliances with leading technology providers bolster its offerings and enable CDW to tap into emerging trends in the technology sector, contributing significantly to its overall earnings.

CDW Financial Statement Overview

Summary

CDW demonstrates strong financial health with consistent profitability and efficient cash flow management, despite moderate revenue growth and a leveraged balance sheet. The company's strong return on equity and margin stability position it well in the competitive information technology services industry.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.88B	21.00B	21.38B	23.75B	20.82B	18.47B
Gross Profit	4.72B	4.60B	4.65B	4.69B	3.57B	3.21B
EBITDA	1.96B	1.93B	1.95B	2.01B	1.64B	1.58B
Net Income	1.08B	1.08B	1.10B	1.11B	988.60M	788.50M
Balance Sheet
Total Assets	15.27B	14.68B	13.28B	13.13B	13.20B	9.34B
Cash, Cash Equivalents and Short-Term Investments	481.00M	717.70M	588.70M	315.20M	258.10M	1.41B
Total Debt	5.77B	5.99B	5.81B	6.10B	7.35B	4.57B
Total Liabilities	12.80B	12.33B	11.24B	11.53B	12.49B	8.05B
Stockholders Equity	2.47B	2.35B	2.04B	1.60B	705.70M	1.30B
Cash Flow
Free Cash Flow	1.02B	1.15B	1.45B	1.21B	684.60M	1.16B
Operating Cash Flow	1.13B	1.28B	1.60B	1.34B	784.60M	1.31B
Investing Cash Flow	-444.00M	-659.20M	-229.60M	-164.50M	-2.77B	-201.00M
Financing Cash Flow	-886.50M	-686.90M	-1.10B	-1.10B	832.80M	138.80M

CDW Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 156.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDW, the sentiment is Neutral. The current price of 156.8 is above the 20-day moving average (MA) of 154.51, below the 50-day MA of 160.33, and below the 200-day MA of 170.56, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CDW.

CDW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	―	$34.84B	16.63	14.50%	1.72%	7.44%	-4.57%
LDOS	―	$24.49B	17.79	30.76%	0.84%	6.53%	230.23%
IT	―	$18.81B	15.28	116.13%	―	5.89%	54.53%
WIT	―	$28.59B	17.79	16.39%	3.10%	-1.97%	48.61%
EPAM	―	$8.86B	22.69	11.36%	―	9.73%	-0.29%
CDW	―	$20.55B	19.56	46.39%	1.59%	4.47%	-1.84%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CDW Corporate Events

CDW Corporation Reports Strong Q2 2025 Earnings

CDW Corporation is a prominent provider of information technology solutions, serving business, government, education, and healthcare sectors across the United States, the United Kingdom, and Canada. As a Fortune 500 company, CDW is recognized for its comprehensive IT solutions and customer-centric approach.

CDW Corporation Reports Strong Growth Amid Challenges

CDW Corporation’s recent earnings call painted a picture of robust growth and strategic adaptability, despite facing challenges in certain segments. The overall sentiment was positive, with strong performances in corporate, small business, healthcare, and international operations. However, there were significant hurdles in the education and federal sectors, along with pressures on gross margins, leading to a cautious outlook for the remainder of the year.

CDW Reports Strong Q2 2025 Earnings Growth

On August 6, 2025, CDW Corporation announced its second-quarter earnings for 2025, reporting a 10.2% increase in net sales compared to the same period in 2024, driven by heightened demand for notebooks, mobile devices, software, and data storage solutions. The company also declared a quarterly cash dividend of $0.625 per common share, reinforcing its commitment to returning cash to shareholders. Despite economic uncertainties, CDW’s diverse portfolio and strategic investments have positioned it to exceed US IT market growth, maintaining its role as a trusted advisor in the technology sector.

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.