PC Connection, Inc. (CNXN) is a publicly traded company in the Technology — Technology Distributors industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
PC Connection, Inc., together with its affiliates, offers a comprehensive range of information technology (IT) solutions. The company structures its operations into three main divisions: Business Solutions, Enterprise Solutions, and Public Sector Solutions. Its product portfolio features a wide selection of IT hardware, including computer systems, peripheral devices, and data center infrastructure, as well as software applications and networking communication equipment.
Analysis Summary
PC Connection, Inc. reported revenue of $2.87B in the most recent fiscal year, growing at a 5-year CAGR of 2.1%. Net income reached $83.7M, with a 8.5% 5-year CAGR.
Trailing-twelve-month margins: gross margin 18.9%, operating margin 4.2%, net margin 3.2%. Free cash flow grew at 18.3% CAGR over 5 years.
Balance sheet quality for CNXN: current ratio of 2.9, net cash position of $405.7M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $58.0M represents 69% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $86.46 |
| Market Cap | $2.2B |
| Exchange | NASDAQ |
| Country | US |
Valuation Ratios
| P/E Ratio | 22.81 |
| Price / Book | 2.29 |
| Dividend Yield | 0.87% |
Profitability
| Gross Margin | 18.89% |
| Operating Margin | 4.22% |
| Net Margin | 3.21% |
Financial Health
| Debt / Equity | 0.01 |
| Current Ratio | 2.88 |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| CNXN | PC Connection, Inc. | $2.2B | 22.81 | 2.29 | |
| ADEA | Adeia Inc. | $2.7B | 20.45 | 5.34 | 26.7% |
| HIMX | Himax Technologies, Inc. | $2.4B | 61.78 | 2.38 | 3.9% |
| KARO | Karooooo Ltd. | $2.1B | 35.22 | 10.03 | |
| SNX | TD Synnex Corp | $21.1B | 18.78 | 2.36 | 13.1% |
| 0HI1.L | Arrow Electronics, Inc. | $11.2B | |||
| ARW | Arrow Electronics, Inc. | $11.0B | 12.77 | 1.48 | |
| AVT | Avnet, Inc. | $7.6B | 21.30 | 1.42 | 6.8% |
Price Performance
| 1 month | +10.92% |
| 3 months | +22.52% |
| Year-to-date | +49.69% |
| 1 year | +36.59% |
| 3 years | +61.73% |
52-Week Range
| 52-week High | $88.35 |
| 52-week Low | $54.97 |
| Avg Volume (90d) | 144K |
Dividend History
| Date | Amount | Yield |
|---|---|---|
| 2026-08-11 | $0.2000 | 0.93% |
| 2026-05-12 | $0.2000 | 0.93% |
| 2026-02-17 | $0.2000 | 0.93% |
| 2025-11-10 | $0.1500 | 0.69% |
| 2025-08-12 | $0.1500 | 0.69% |
| 2025-05-13 | $0.1500 | 0.69% |
| 2025-02-25 | $0.1500 | 0.69% |
| 2024-11-12 | $0.1000 | 0.46% |
| 2024-08-13 | $0.1000 | 0.46% |
| 2024-05-13 | $0.1000 | 0.46% |
Related companies: ADEA · ALIT · HIMX · KARO · KDK · PLAB · PLTK
Explore sector: Technology · Technology Distributors
More sections of CNXN: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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