NASDAQ
CNXN
Last Price
US $73.83
KEY FIGURES
MKT CAP
$1.8B
EPS
TTM
$3.47
PEG
TTM
N/M
P/E
TTM
20.64x
P/S
TTM
0.63x
YIELD
0.98%
GROWTH
Revenue Y/Y
2.09%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $73.83
-34.32%
Default assumptions
EBITDA Multiple
Fair Value
Market $73.83
-41.42%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
PC Connection, Inc. cash flow to debt ratio of 6.57K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial risk - Healthy cash flow growth.
PC Connection, Inc.'s free cash flow has decreased -65.09% from $166.29M last year to $58.05M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
PC Connection, Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
PC Connection, Inc.'s debt has increased relative to shareholder equity from 0.00 last year to 0.01 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
PC Connection, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
PC Connection, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
PC Connection, Inc.'s profit margin has decreased (-2.75%) in the last year from 3.11% to 3.02%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
PC Connection, Inc.'s short-term assets of $1.22G exceed its short-term liabilities of $420.39M
Increasing performance - ROA.
PC Connection, Inc.'s return on assets of 6.14% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
PC Connection, Inc.'s return on equity of 9.67%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
PC Connection, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
PC Connection, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
PC Connection, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
PC Connection, Inc. has a free cash flow yield of 3.22%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
PC Connection, Inc.'s yearly earnings has decreased -3.87% since last year from $87.09M to $83.72M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
PC Connection, Inc.'s yearly revenue has increased 2.52% since last year from $2.80G to $2.87G, signaling increasing performance
Increasing performance - ROIC.
ROIC 8.74% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
PC Connection, Inc.'s 3-year revenue CAGR of -2.77% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
PC Connection, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
PC Connection, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
PC Connection, Inc. is overvalued relative to its fair value price of 48.49 based on Discounted Cash Flow model
Undervalued - Earnings yield.
PC Connection, Inc. has an earnings yield of 4.86%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
PC Connection, Inc. is overvalued relative to its fair value price of 43.25 based on EBITDA multiple model
Undervalued - EV/EBITDA.
PC Connection, Inc. has an EV/EBITDA ratio of 12.41x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
PC Connection, Inc. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
PC Connection, Inc. has a price-to-book ratio of 1.95x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
PC Connection, Inc. has a price-to-sales ratio of 0.62x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
9.67%
Return on equity
ROIC: 8.74%
Valuation History
20.6X
Price to Earnings
EV/EBITDA: 12.4X
Cash flow
Profit margin
8.17%
(FY vs FY)
Cash flow Y/Y
18.29%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.