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Fundamentals for CDW Corporation
Business Operations:
Sector: TechnologyIndustry: Information Technology Services
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, collaboration hardware, data storage and servers, desktop computers, and other hardware; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, collaboration and productivity applications, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, and managed services, as well as warranties. It serves business, government, education, and healthcare customers. The company was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. CDW Corporation was founded in 1984 and is based in Vernon Hills, Illinois.
Revenue projections:
With CDW Corporation's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.
Financial Ratios:
| currentRatio | 1.176000 |
|---|---|
| forwardPE | 11.955863 |
| debtToEquity | 236.871000 |
| earningsGrowth | 0.088000 |
| revenueGrowth | 0.063000 |
| grossMargins | 0.217330 |
| operatingMargins | 0.073090 |
| trailingEps | 8.080000 |
| forwardEps | 11.338370 |
CDW's current ratio of 1.176 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that CDW is financially well-prepared to meet its liabilities without difficulty.
CDW Corporation's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
CDW Corporation's elevated debt-to-equity ratio shows that the company is relying heavily on debt to fund its activities. This high leverage can amplify returns but also heightens financial risks if cash flow becomes constrained.
CDW Corporation's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that CDW Corporation's financial performance will improve in the current financial year.
Price projections:
CDW Corporation's price projections have steadily declined, indicating that analysts are revising their outlook on the company. This downward trend reflects a more cautious perspective on CDW Corporation's future growth prospects.
Insider Transactions:
3 CDW shares were sold in recent transactions, with market price at 172.23666381835938.Throughout the period under consideration, no sell transactions were recorded.The higher number of buys versus sells near CDW Corporation's current price suggests optimism among investors. This buying trend could be interpreted as a sign that the market expects favorable outcomes for the stock in the near future.
Recommendation changes over time:
CDW has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as CDW is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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