PC Connection, Inc. (CNXN) Valuation — DCF, Graham & Comparables

PC Connection, Inc. (CNXN) — Price $92.40 — Technology — Technology Distributors — NASDAQ

Latest reported results:

Valuation dashboard for PC Connection, Inc. (CNXN) with P/E 24.37, P/B 2.45, EV/EBITDA 15.45 and dividend yield 0.81%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.

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%.

At the current price of $92.40, CNXN trades at a P/E of 24.37 and an ROE of 10.40%. Market capitalisation stands at $2.3B.

Balance sheet quality for CNXN: current ratio of 2.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio24.37
Price / Book2.45
EV / EBITDA15.45
Dividend Yield0.81%

Valuation Models

DCF Fair Value$69.25
vs Current Price-25.1%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
CNXNPC Connection, Inc.$2.3B24.372.4510.4%
ADEAAdeia Inc.$2.8B23.496.1326.7%
HIMXHimax Technologies, Inc.$2.7B76.742.964.9%
SNXTD Synnex Corp$20.5B16.842.379.8%
ARWArrow Electronics, Inc.$12.4B15.361.7812.1%
0HI1.LArrow Electronics, Inc.$12.0B
AVTAvnet, Inc.$8.8B26.271.756.7%
0QLW.LALSO Holding AG$2.4B

Price

Price$92.40
Market Cap$2.3B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity10.40%
Return on Invested Capital9.48%
Return on Assets6.71%
Gross Margin18.89%
Operating Margin4.22%
Net Margin3.21%

Related companies: ADEA · ALIT · HIMX · KARO · KDK · PLAB · PLTK

Explore sector: Technology · Technology Distributors

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