A Business at a Glance
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CDW Corp
CDW
$17.7B
Mkt Cap
$133.82
+2.80%
CDW Corp (CDW) has a current P/E ratio of 16.6, compared to its historical median P/E of 21.1. The stock is currently considered Cheap based on its historical valuation range.
CDW Corp (CDW) has a 5-year average return on invested capital (ROIC) of 17.7%. This indicates strong capital allocation and a potential competitive advantage.
CDW Corp (CDW) has a market capitalization of $17.1B. It is classified as a large-cap stock.
Yes, CDW Corp (CDW) pays a dividend with a trailing twelve-month yield of 1.91%. The company also returns capital through share buybacks, with a buyback yield of 3.82%.
Based on historical P/E analysis, CDW Corp (CDW) appears cheap. The current P/E of 16.6 is 22% below its historical median of 21.1. The estimated fair value CAGR (P/E method) is 10.2%.
CDW Corp (CDW) operates in the Retail-Catalog & Mail-Order Houses industry, within the Consumer Cyclical sector.
CDW Corp (CDW) reported annual revenue of $22.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
CDW Corporation is a leading multi-brand IT solutions provider serving business, government, education, and healthcare customers across the United States, United Kingdom, and Canada. The company operates as a vendor-agnostic channel partner, offering over 100,000 products and services from more than 1,000 vendor partners including major OEMs and software publishers, delivering solutions through approximately 10,500 customer-facing coworkers including sellers, specialists, and engineers. CDW's business model centers on simplifying technology procurement and implementation across the full IT lifecycle—from discrete hardware and software products to integrated solutions spanning hybrid infrastructure, digital experience, security, and managed services—generating value by providing customers with trusted advisory services, technical expertise, and end-to-end solution design while offering vendor partners cost-effective channel access to over 250,000 customers. The company operates through three reportable segments (Commercial, Government, and Education as of January 2026) plus international operations in the UK and Canada, with the US representing approximately 90% of net sales; distribution occurs through a combination of direct sales, drop-shipment arrangements (approximately 51% of North America net sales in 2025), and three distribution centers totaling over 1 million square feet that handle approximately 22 million units annually. CDW's competitive advantages include scale enabling national and international footprint, deep vertical expertise, performance-driven culture, highly-skilled technical workforce, and established relationships with both vendor partners and customers across fragmented markets served by thousands of resellers.
【AI adoption and services acceleration】 Management expects netted-down revenues and professional and managed services to increase in priority for customers in the second half of 2026 and to outpace overall business growth longer term, driven by customers' focus on turning AI's promise into practical, secure, and measurable outcomes. The company anticipates that Geared for Growth enterprise initiatives will begin flowing through benefits in the back half of 2026, building over time, with substantial cost structure improvements identified that will accrue benefits starting in the second half and continue into 2027 and 2028. Management notes that partners with scale, full-stack relevance, and the ability to deliver outcomes consistently with confidence and speed matter as AI adoption reshapes customer requirements, positioning CDW's end-to-end model favorably. The company maintains a disciplined and prudent approach to the year, acknowledging continued uncertainty in the second half while benefiting from strong first-quarter order activity and elevated backlogs entering subsequent quarters.
| Metric | Target | Period |
|---|---|---|
| Gross profit growth | low to mid-single digits | FY2026 |
| Gross margin | approximately in line with 2025 levels | FY2026 |
| Non-GAAP net income per diluted share growth | high end of mid-single digits | FY2026 |
| Cost structure improvements (run rate) | $100 million-$200 million | 2027-2028 |
Gross profit growth (FY2026): “we now expect gross profit to grow in the range of low to mid-single digits for the full year 2026”
Gross margin (FY2026): “Based on a slightly higher mix of hardware products for 2026 than we originally anticipated, we now expect gross margins to be approximately in line with 2025 levels”
Non-GAAP net income per diluted share growth (FY2026): “we continue to expect our full year non-GAAP net income per diluted share to grow at the high end of mid-single digits year-over-year”
Cost structure improvements (run rate) (2027-2028): “As we look forward into 2027 and 2028, we would anticipate run rate improvements in the range of $100 million-$200 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 22.9B | 22.4B | 21.0B | 21.4B | 23.7B | 20.8B |
| Net Income | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B | 989M |
| EPS | $8.30 | $8.08 | $7.97 | $8.10 | $8.13 | $7.04 |
| Free Cash Flow | 1.1B | 1.1B | 1.2B | 1.5B | 1.2B | 685M |
| ROIC | 16.4% | 16.4% | 17.0% | 17.9% | 18.2% | 19.1% |
| Gross Margin | 21.6% | 21.7% | 21.9% | 21.8% | 19.7% | 17.1% |
| Debt/Equity | 2.21 | 2.16 | 2.48 | 2.76 | 3.84 | 10.02 |
| Dividends/Share | $2.55 | $2.51 | $2.49 | $2.39 | $2.09 | $1.70 |
| Operating Income | 1.7B | 1.7B | 1.7B | 1.7B | 1.7B | 1.4B |
| Operating Margin | 7.3% | 7.4% | 7.9% | 7.9% | 7.3% | 6.8% |
| ROE | 42.1% | 43.0% | 49.0% | 60.6% | 69.5% | 98.7% |
| Shares Outstanding | 128M | 132M | 135M | 136M | 137M | 140M |
CDW Corp passes 6 of 9 quality checks, suggesting mixed fundamentals.
CDW Corp trades at 16.6x trailing earnings, compared to its 15-year median P/E of 21.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.9x vs a median of 18.0x. The company's 5-year average ROIC is 17.7% with a gross margin of 20.5%. Total shareholder yield (dividends + buybacks) is 5.7%. At current prices, the estimated annualized return to fair value is +8.2%.
CDW Corp (CDW) has a net profit margin of 4.8%. This is a modest margin.
CDW Corp (CDW) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CDW Corp (CDW) has a debt-to-equity ratio of 2.16. This indicates higher leverage, which may increase financial risk.
CDW Corp (CDW) reported earnings per share (EPS) of $8.08 in its most recent fiscal year.
CDW Corp (CDW) has a return on equity (ROE) of 43.0%. This indicates the company generates strong returns for shareholders.
CDW Corp (CDW) has a 5-year average gross margin of 20.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for CDW Corp (CDW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CDW Corp (CDW) has a book value per share of $19.74, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects netted-down revenues and professional and managed services to increase in priority for customers in the second half of 2026 and to outpace overall business growth longer term, driven by customers' focus on turning AI's promise into practical, secure, and measurable outcomes. The company anticipates that Geared for Growth enterprise initiatives will begin flowing through benefits in the back half of 2026, building over time, with substantial cost structure improvements identified that will accrue benefits starting in the second half and continue into 2027 and 2028. Management notes that partners with scale, full-stack relevance, and the ability to deliver outcomes consistently with confidence and speed matter as AI adoption reshapes customer requirements, positioning CDW's end-to-end model favorably. The company maintains a disciplined and prudent approach to the year, acknowledging continued uncertainty in the second half while benefiting from strong first-quarter order activity and elevated backlogs entering subsequent quarters.
Based on recent SEC filings and earnings calls, CDW Corp (CDW) has provided the following forward guidance: Gross profit growth: low to mid-single digits (FY2026); Gross margin: approximately in line with 2025 levels (FY2026); Non-GAAP net income per diluted share growth: high end of mid-single digits (FY2026); Cost structure improvements (run rate): $100 million-$200 million (2027-2028).
No recent press releases.