CDW (CDW) AI Stock Analysis

• Market Cap: $18.87B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.24
• Revenue Growth: 6.09%
• EPS Growth: -3.84%
• Country: US
• Employees: 15,100
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.71
• Shares Outstanding: 130,193,660
• 10 Day Avg. Volume: 1,255,454
• 30 Day Avg. Volume: 1,499,512
• PEG Ratio: -12.65
• Price to Book (P/B): 9.90
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 20.17
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 14.37
• 1Y Price Target: $177.17
• Price Target Upside: 22.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 9.88
• Revenue Forecast (FY): $22.24B

• Rating: 62 Neutral
• Price Target: $150.00 ▲(3.50% Upside)

CDW's overall score is driven by stable financial performance and fair valuation, though technical indicators suggest bearish momentum. The earnings call reflects a cautious outlook due to challenges in certain sectors, impacting the overall sentiment.

Positive Factors

Revenue Growth

The increase in net sales indicates a strong demand for CDW's technology solutions, showcasing its ability to capture market share and drive revenue growth.

Strong Partnerships

Strategic partnerships with leading technology providers enhance CDW's product offerings and market competitiveness, supporting long-term growth.

Cash Management

Effective cash management ensures CDW can invest in growth opportunities and navigate economic uncertainties, bolstering financial stability.

Negative Factors

High Leverage

Significant leverage can constrain financial flexibility and increase risk, potentially impacting CDW's ability to invest in future growth.

Operational Efficiency Decline

Declining operational efficiency may hinder profitability and competitive positioning, requiring strategic adjustments to maintain margins.

Education Market Challenges

Challenges in the education sector could limit growth in a key market segment, necessitating diversification or strategic shifts to mitigate impact.

CDW Business Overview & Revenue Model

Company Description

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 data center and networking, digital workspace, 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, and telecom services, as well as warranties; 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. The company was founded in 1984 and is headquartered in Vernon Hills, Illinois.

How the Company Makes Money

CDW generates revenue primarily through the sale of technology products and services. Its key revenue streams include direct sales of hardware and software, which account for a significant portion of its revenues, as well as recurring revenue from managed services and cloud solutions. The company benefits from strategic partnerships with leading technology vendors, allowing it to offer a broad portfolio of products while leveraging vendor marketing and sales programs. Additionally, CDW's extensive customer base, ranging from small businesses to large enterprises and government agencies, provides a steady demand for its offerings, contributing to its overall financial performance.

CDW Financial Statement Overview

Summary

CDW shows stable revenue and profit margins, though operational efficiency has declined. The company is highly leveraged, posing a risk, but cash management remains robust. Improvement in operational margins and debt management is crucial for future growth.

Income Statement

CDW's income statement shows a stable gross profit margin around 21.6% in TTM, with a slight decline in net profit margin to 1.2%. Revenue growth has been modest at 1% TTM, indicating steady performance. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.27 in TTM, indicating significant leverage, though it has improved from previous years. Return on equity has decreased to 10.9% in TTM, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 98.1% TTM, indicating potential cash flow challenges. However, the operating cash flow to net income ratio remains healthy at 0.20, and free cash flow to net income is strong at 90.3%, suggesting effective cash management despite growth issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.10B	21.00B	21.38B	23.75B	20.82B	18.47B
Gross Profit	4.77B	4.60B	4.65B	4.69B	3.57B	3.21B
EBITDA	1.85B	1.93B	1.95B	2.01B	1.64B	1.58B
Net Income	1.05B	1.08B	1.10B	1.11B	988.60M	788.50M
Balance Sheet
Total Assets	15.20B	14.68B	13.28B	13.13B	13.20B	9.34B
Cash, Cash Equivalents and Short-Term Investments	452.90M	717.70M	588.70M	315.20M	258.10M	1.41B
Total Debt	6.09B	5.99B	5.81B	6.10B	7.35B	4.57B
Total Liabilities	12.66B	12.33B	11.24B	11.53B	12.49B	8.05B
Stockholders Equity	2.54B	2.35B	2.04B	1.60B	705.70M	1.30B
Cash Flow
Free Cash Flow	1.01B	1.15B	1.45B	1.21B	684.60M	1.16B
Operating Cash Flow	1.12B	1.28B	1.60B	1.34B	784.60M	1.31B
Investing Cash Flow	-229.00M	-659.20M	-229.60M	-164.50M	-2.77B	-201.00M
Financing Cash Flow	-1.38B	-686.90M	-1.10B	-1.10B	832.80M	138.80M

CDW Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.93
• 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 Negative. The current price of 144.93 is above the 20-day moving average (MA) of 143.51, below the 50-day MA of 148.13, and below the 200-day MA of 163.06, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDW.

CDW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	79 Outperform	$40.51B	19.46	14.50%	1.48%	7.44%	-4.57%
LDOS	77 Outperform	$24.26B	17.70	29.51%	0.84%	6.48%	22.17%
WIT	74 Outperform	$29.97B	18.85	16.39%	2.97%	-1.97%	48.61%
EPAM	70 Neutral	$11.66B	31.99	10.21%	―	14.26%	-15.49%
IT	67 Neutral	$16.86B	20.51	109.26%	―	5.24%	-16.05%
CDW	62 Neutral	$18.87B	18.33	43.01%	1.73%	6.09%	-3.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CDW Corporate Events

CDW Reports Q3 2025 Financial Results with Sales Growth

On November 4, 2025, CDW Corporation announced its third quarter 2025 financial results, reporting a 4.0% increase in net sales compared to the same period in 2024, driven by higher demand for netcomm products, notebooks, desktops, software, and services. The company also declared a quarterly cash dividend of $0.630 per common share, to be paid on December 10, 2025. Despite economic uncertainties, CDW’s diversified customer base and strategic investments contributed to resilient performance, with significant growth in the Small Business segment and increased sales to Government and Healthcare customers. However, operating income decreased by 8.0% due to higher selling and administrative expenses.

CDW Announces Retirement of Chief Growth Officer

On October 28, 2025, CDW Corporation announced that Sona Chawla will retire from her role as Chief Growth and Innovation Officer and Executive Vice President effective December 31, 2025. She will continue to support the company on a consulting basis until April 9, 2026, to ensure a smooth transition of her responsibilities.