Last Updated: 18 Oct 2024
Executive Summary
CDW Corp (NASDAQ: CDW) is a leading provider of technology products and services to businesses, governments, and educational institutions. The company has a strong financial profile with a market capitalization of $29.5 billion, an EBITDA of $1.98 billion, and a trailing PE ratio of 27.07. CDW's revenue and earnings have grown steadily in recent years, and the company is expected to continue to perform well in the future.
Company Overview
CDW was founded in 1984 and is headquartered in Lincolnshire, Illinois. The company offers a wide range of technology products and services, including hardware, software, networking, and cloud computing. CDW has a team of over 10,000 employees and serves customers in over 150 countries.
Fundamental Analysis
CDW's financial performance has been strong in recent years. The company's revenue has grown from $15.9 billion in 2019 to $20.9 billion in 2023. Net income has also increased, from $510 million in 2019 to $671 million in 2023. CDW's gross profit margin has remained stable at around 22%, and its operating margin has improved from 6.1% in 2019 to 7.99% in 2023.
CDW's balance sheet is also strong. The company has $1.9 billion in cash and equivalents and $3.1 billion in total debt. CDW's debt-to-equity ratio is 0.36, which is below the industry average.
Technical Analysis
CDW's stock price has been trending higher in recent months. The stock reached a 52-week high of $261.97 in April 2023 and has since pulled back to around $221. The stock is currently trading above its 50-day and 200-day moving averages.
Short Term Outlook
CDW's stock price is expected to continue to trade in a range in the short term. The stock is currently trading at a premium to its peers, and there is some risk of a pullback if the market corrects. However, CDW's strong fundamentals should support the stock price in the long term.
Long Term Outlook
CDW is expected to continue to perform well in the long term. The company is a leader in the technology industry and is well-positioned to benefit from the continued growth of the digital economy. CDW's strong financial profile and experienced management team should also help the company to navigate any challenges that may arise.
Analyst Recommendations
Analysts are generally bullish on CDW. The average analyst rating for the stock is "Buy," and the average analyst target price is $248.42.
