CDW Corp (CDW)
Information Technology · Technology Distributors · US stock · S&P 500 component
$164.62
▲ +6.34 (4.01%)
Fair valueFair
$191 +15.8% to fair value
$95fair band $162–$231$286
Day's range
$154.89 – $165.52
52-week range
$97.12 – $165.52
About CDW Corp
CDW provides information technology products and services to businesses, government agencies, schools and universities, and healthcare organisations in North America and the United Kingdom. It brings together hardware, software and services from many technology makers, including laptops, servers, networking gear, cloud and security offerings, and helps customers choose, set up and manage them. Customers can work with account managers, order online or use technical specialists.
CDW earns money from the margin on the hardware and software it distributes and from service fees. The last twelve months brought revenue of $23.5 billion, and revenue growth over the last three years was -1.9% a year, a decline. The operating margin is 7.1%, and the business earns a profit of 16% on the capital invested in it. It has net debt of 2.8 times EBITDA. The company pays a dividend with a yield of 1.5%. On the site's X-Ray Score it receives 45 out of 100.
Price chart
52-wk range $97.12 – $165.52Volume 1,952,286Daily, split-adjusted
Vitals
Market cap$21.0B
52-week range$97.12 – $165.52
Volume (last day)1,952,286
P/E (TTM)19.8
EBIT / EV yield6.4%
Free-cash-flow yield4.1%
Dividend yield1.5%
Revenue (TTM)$23.5B
Net income (TTM)$1.1B
Operating margin7.1%
Return on capital15.8%
Debt incl. leases$5.8B
Cash & securities$362M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$191middle half of models $172 – $210
Fair
+15.8% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $165
Undervalued < $162Fair $162 – $231Overvalued > $231
P/E multiple
$169
P/B multiple
$233
P/S multiple
$252
EV/EBITDA multiple
$209
EV/EBIT multiple
$201
EV/revenue multiple
$238
10-year DCF, EBITDA exit
$200
5-year DCF, EBITDA exit
$192
10-year DCF, revenue exit
$204
5-year DCF, revenue exit
$198
10-year DCF, growth exit
$175
5-year DCF, growth exit
$163
Dividend discount, stable
$87
Dividend discount, multi-stage
$127
Earnings power value
$211
Growth the price implies
9.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
77/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield6.4%
Free-cash-flow yield4.1%
Fair value vs price1.2×
Growth
Weak
21/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-1.9%
EPS growth (3y)-0.2%
Growth consistency70%
Profitability
Weak
43/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital15.8%
Operating margin7.1%
Gross profitability29.1%
Financial health
Weak
30/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA2.8×
Interest coverNo interest cost
Dividends
Fair
52/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.5%
Dividends vs free cash flow37%
Dividend growth5.2%
Quarterly results: last 6 quarters
+6.7%
Mar '25
+10.2%
Jun '25
+4.0%
Sep '25
+6.3%
Dec '25
+9.2%
Mar '26
+10.0%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.6B, diluted EPS $2.15.
SWOT analysis: CDW Corp
Strengthsinside the company
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Operating margin of 7.1% is thin against 21.7% for sector peers.
- Revenue has fallen 1.9% a year over three years while sector peers grew 9.8%.
- Altman Z-score of 1.1 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Revenue growth picked up to 6.8% last year from -1.9% a year over three years.
- Dividends use only 37% of free cash flow, which leaves room to raise them.
- Trades at 19.4x earnings, 43% below the 34.1x median of sector peers.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare CDW with peers and sector
Medians of 74 Information Technology peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): NVDA 67, AAPL 53, MSFT 61, AVGO 60, MU 79, AMD 48.
| Metric | CDW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 45 | 50 | 50 |
| Valuation | 77 | 50 | 50 |
| Growth | 21 | 54 | 54 |
| Profitability | 43 | 50 | 50 |
| Financial health | 30 | 50 | 50 |
| Dividends | 52 | 50 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
CDW ranks #48 of 75 in Information Technology by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for CDW
Each factor is rated by where CDW stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 4 Average · 13 Bad of 23
Growth: 0 · 1 · 2
Profitability: 1 · 1 · 3
Financial strength: 1 · 0 · 3
Valuation: 3 · 2 · 0
Cash flow: 0 · 0 · 4
Efficiency: 1 · 0 · 1
| Factor | CDW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −1.9% | Bad beats 14% | +9.7% | – | – |
| Revenue growth, last year | +6.8% | Bad beats 19% | +13.7% | +6.8% | ≈ In line |
| EPS growth, 3 years a year | −0.2% | Average beats 38% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 21.4% | Bad beats 8% | 57.8% | 21.7% | ≈ In line |
| Operating margin | 7.1% | Bad beats 15% | 20.3% | 7.4% | ≈ In line |
| Net margin | 4.6% | Bad beats 13% | 17.8% | 4.8% | ≈ In line |
| Return on invested capital | 15.8% | Average beats 41% | 19.4% | – | – |
| Return on equity | 44.2% | Good beats 78% | 21.0% | 54.1% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 2.8x | Bad beats 14% | 0.8x | 2.7x | ≈ In line |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 1.17 | Bad beats 30% | 1.57 | 1.27 | ≈ In line |
| Piotroski F-score | 5 / 9 | Bad beats 21% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 19.4x | Good beats 80% | 33.6x | 22.0x | ▲ Better |
| Price / book | 8.6x | Average beats 48% | 8.3x | 15.2x | ▲ Better |
| Price / sales | 0.9x | Good beats 95% | 6.9x | 1.1x | ≈ In line |
| EV / EBITDA | 13.4x | Good beats 86% | 24.7x | 14.9x | ▲ Better |
| Free cash flow yield | 4.1% | Average beats 61% | 3.4% | 4.9% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 3.7% | Bad beats 7% | 22.3% | 5.1% | ▼ Worse |
| Cash from operations / net income | 0.91 | Bad beats 13% | 1.39 | 1.19 | ▼ Worse |
| Free cash flow growth, 3 years a year | −3.4% | Bad beats 16% | +15.4% | – | – |
| Accruals (lower is better) | +0.6% | Bad beats 15% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 18.8x | Good beats 93% | 3.9x | 25.0x | ▼ Worse |
| Days sales outstanding | 114 days | Bad beats 2% | 63 days | 79 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 4 Average · ● 9 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginBad
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 40/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $20.8B | $23.7B | $21.4B | $21.0B | $22.4B |
| Operating income | $1.4B | $1.7B | $1.7B | $1.7B | $1.7B |
| Net income | $989M | $1.1B | $1.1B | $1.1B | $1.1B |
| Operating cash flow | $785M | $1.3B | $1.6B | $1.3B | $1.2B |
| Operating margin | 6.8% | 7.3% | 7.9% | 7.9% | 7.4% |
| Free cash flow | $685M | $1.2B | $1.5B | $1.2B | $1.1B |
| Diluted EPS | $7.04 | $8.13 | $8.10 | $7.97 | $8.08 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 152.3 | Bullish |
| EMA 10 | 152.9 | Bullish |
| SMA 20 | 143.1 | Bullish |
| EMA 20 | 148.4 | Bullish |
| SMA 50 | 144.0 | Bullish |
| EMA 50 | 144.1 | Bullish |
| SMA 100 | 139.7 | Bullish |
| EMA 100 | 140.0 | Bullish |
| SMA 200 | 131.3 | Bullish |
| EMA 200 | 138.9 | Bullish |
Oscillators (daily)
| RSI (14) | 70.51 | Bearish |
| MACD (12, 26) | 4.55 | Bullish |
| Momentum (12) | 21.34 | Bullish |
| Stochastic %K (14) | 97.30 | Bearish |
| Williams %R (14) | -2.70 | Bearish |
| CCI (20) | 140.2 | Bearish |
Pivot points (classic, last session)
S3 147.2 | S2 151.0 | S1 157.8 | Pivot 161.7 | R1 168.5 | R2 172.3 | R3 179.1 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
2.52 USD
Yield on today's price
1.53%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.6300 | |
| 0.6300 | |
| 0.6300 | |
| 0.6300 | |
| 0.6250 | |
| 0.6250 | |
| 0.6250 | |
| 0.6250 | |
| 0.6200 | |
| 0.6200 | |
| 0.6200 | |
| 0.6200 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold CDW
| ETF | Share of the fund |
|---|---|
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.56% |
| DIVB iShares U.S. Dividend and Buyback | 1.43% |
| TDIV First Trust NASDAQ Technology Dividend... | 0.54% |
| VBR Vanguard Small-Cap Value | 0.38% |
| COWZ Pacer US Cash Cows 100 | 0.36% |
| ROUS Hartford Multifactor US Equity | 0.32% |
| RSP Invesco S&P 500 Equal Weight | 0.22% |
| VB Vanguard Small-Cap | 0.22% |
The eight funds with the largest weight in CDW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
CDW SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Entered a material agreement
424B5SEC EDGAR
424B5
8-KSEC EDGAR
Entered a material agreement
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Results of operations; Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.