PC Connection (CNXN) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 1.03%
• Average Volume (3M): 75.44K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.86
• Revenue Growth: 3.19%
• EPS Growth: -4.91%
• Country: US
• Employees: 2,580
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.97
• Shares Outstanding: 25,245,224
• 10 Day Avg. Volume: 94,486
• 30 Day Avg. Volume: 75,441
• PEG Ratio: 4.74
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 10.96
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.51
• Revenue Forecast (FY): $2.95B

• Rating: 72 Outperform
• Price Target: $68.00 ▲(9.32% Upside)

PC Connection's overall score reflects strong financial health and positive earnings call highlights, tempered by technical analysis indicating a bearish trend and valuation suggesting fair pricing. The company's strategic focus on AI and cloud solutions positions it well for future growth, despite current challenges in the Public Sector.

PC Connection Business Overview & Revenue Model

Company Description

PC Connection, Inc. (CNXN) is a leading provider of technology products and services, primarily catering to business, government, education, and healthcare sectors. The company offers a wide range of products including computers, peripherals, software, and networking equipment, alongside comprehensive services such as IT solutions, managed services, and procurement. With a focus on delivering high-quality technology solutions and exceptional customer service, PC Connection operates through various sales channels, including direct sales, e-commerce, and a dedicated sales force.

How the Company Makes Money

PC Connection generates revenue through multiple streams, primarily by selling technology products from leading manufacturers to businesses and institutions. The company earns money through direct product sales, where it acts as a reseller for major brands like Dell, HP, and Cisco. Additionally, PC Connection's revenue model includes service offerings such as IT consulting, managed services, and support, which provide recurring revenue. The company also benefits from partnerships with technology vendors, allowing it to offer bundled solutions and competitive pricing, which enhances its market position and profitability. Key revenue streams include both product sales and service contracts, contributing to a diversified income portfolio.

PC Connection Financial Statement Overview

Summary

PC Connection shows strong financial health with a robust balance sheet and improving cash flow metrics. Despite a revenue decline, the company maintains operational efficiency and a low-risk financial structure, positioning it well for future growth opportunities.

Income Statement

PC Connection's income statement shows a stable gross profit margin of around 18% over the TTM, with a slight decline in net profit margin to 2.97%. Revenue has decreased by 5.41% in the TTM, indicating a challenging market environment. However, the company maintains consistent EBIT and EBITDA margins, suggesting operational efficiency.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.0029, indicating minimal leverage and financial risk. The return on equity is healthy at 9.64%, reflecting effective use of shareholder funds. The equity ratio stands at a solid 69.1%, highlighting a robust capital structure.

Cash Flow

Cash flow analysis reveals a significant 80.21% growth in free cash flow, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.07, but the free cash flow to net income ratio is strong at 0.77, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.80B	2.85B	3.12B	2.89B	2.59B
Gross Profit	533.50M	519.79M	511.74M	526.18M	464.58M	418.81M
EBITDA	119.86M	110.49M	118.22M	132.53M	108.72M	86.67M
Net Income	83.73M	87.09M	83.27M	89.22M	69.91M	55.77M
Balance Sheet
Total Assets	1.31B	1.30B	1.19B	1.10B	1.08B	1.02B
Cash, Cash Equivalents and Short-Term Investments	399.20M	442.61M	297.19M	122.93M	108.31M	95.66M
Total Debt	437.00K	3.36M	4.91M	8.16M	6.79M	9.63M
Total Liabilities	402.78M	388.36M	347.61M	333.65M	401.69M	379.05M
Stockholders Equity	902.74M	910.99M	840.77M	766.17M	682.47M	636.33M
Cash Flow
Free Cash Flow	80.34M	166.29M	188.36M	25.81M	47.45M	25.07M
Operating Cash Flow	89.53M	173.87M	197.95M	34.89M	57.75M	36.10M
Investing Cash Flow	42.09M	-115.29M	-160.20M	-9.08M	-8.73M	-11.03M
Financing Cash Flow	-107.00M	-25.22M	-15.73M	-11.19M	-36.37M	-19.47M

PC Connection Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXN, the sentiment is Negative. The current price of 62.2 is above the 20-day moving average (MA) of 60.41, above the 50-day MA of 61.46, and below the 200-day MA of 63.47, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 37.04 is Neutral, neither overbought nor oversold. The STOCH value of 39.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNXN.

PC Connection Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	73 Outperform	$496.50M	23.17	21.27%	0.64%	51.09%	25.86%
CNXN	72 Outperform	$1.47B	17.93	9.30%	1.03%	3.19%	-4.91%
AVT	67 Neutral	$3.85B	17.63	4.71%	2.87%	-2.30%	-29.75%
ARW	64 Neutral	$5.78B	12.19	7.70%	―	3.16%	1.09%
SCSC	64 Neutral	$890.87M	12.87	8.11%	―	-4.88%	2.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	60 Neutral	$2.94B	22.15	8.51%	―	-6.69%	-51.74%

PC Connection Corporate Events

PC Connection Reports Mixed Q3 2025 Results

PC Connection, Inc., operating as Connection, is a prominent IT solutions provider serving business, government, healthcare, and education sectors, known for its comprehensive IT product offerings and services. In its third-quarter earnings report for 2025, Connection reported a slight decline in net sales by 2.2% year-over-year to $709.1 million, while gross profit reached a record $138.6 million, marking a 2.4% increase. The company also declared a quarterly dividend of $0.15 per share, reflecting its commitment to shareholder returns.

PC Connection Reports Q3 Financial Results, Decline in Sales

On October 29, 2025, Connection reported its third-quarter financial results, revealing a 2.2% year-over-year decline in net sales to $709.1 million, while gross profit rose by 2.4% to $138.6 million. Despite a decrease in net income by 8.6% to $24.7 million, the company maintained a gross margin increase to 19.6%. The Board of Directors declared a quarterly dividend of $0.15 per share, payable on November 28, 2025. The company’s strategy focuses on data center modernization, digital workplace transformation, and supply chain innovation to drive growth and shareholder value.

The most recent analyst rating on (CNXN) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on PC Connection stock, see the CNXN Stock Forecast page.

Pc Connection’s Earnings Call: Balancing Growth and Challenges

The recent earnings call for Pc Connection presented a balanced sentiment, highlighting both achievements and challenges. While the company celebrated consistent revenue growth and a robust performance in the Enterprise Solutions segment, it also faced hurdles such as decreased net income, a decline in Public Sector Solutions, and cash flow difficulties. Despite these mixed results in Q2, there is optimism for the second half of the year.

PC Connection Reports Steady Growth Amid Economic Challenges

PC Connection, Inc., operating under the name Connection, is a prominent information technology solutions provider serving business, government, healthcare, and education markets. The company is known for its rapid-response IT services and extensive product offerings, with a strong presence in the United States and international markets through its GlobalServe subsidiary.

PC Connection Reports Q2 2025 Financial Results

On July 30, 2025, Connection announced its second quarter financial results for the period ending June 30, 2025, reporting a 3.2% increase in net sales to $759.7 million, despite a decrease in net income by 5.2% to $24.8 million. The company also declared a quarterly dividend of $0.15 per share, reflecting its commitment to returning value to shareholders. The results highlighted growth in the Business and Enterprise Solutions segments, while the Public Sector Solutions segment saw a decline. The announcement underscores Connection’s resilience and strategic focus on advanced technologies and customer service amidst a challenging economic environment.