📊 CDW Key Takeaways
Is CDW Corp (CDW) a Good Investment?
CDW demonstrates steady revenue growth (6.8% YoY) with positive free cash flow generation ($248.4M), indicating a fundamentally sound distribution business. However, elevated leverage (1.81x D/E ratio) and tight liquidity (1.16x current ratio) present financial risk, while flat EPS growth (1.4% vs 6.8% revenue growth) suggests profitability is not expanding proportionally.
CDW shows durable core fundamentals with solid revenue growth, healthy gross and operating margins, and strong free cash flow generation relative to capital needs. Financial quality is supported by strong interest coverage and good liquidity, though leverage is meaningful and net income growth has softened, which keeps the outlook positive but not top-tier.
CDW Corp Key Strengths (CDW)
- Solid revenue growth at 6.8% YoY with positive operating cash flow ($274.8M)
- Asset-light business model with low capex requirements ($26.4M) and healthy free cash flow margin (4.4%)
- Reasonable gross margins (21%) and operating margins (6.6%) appropriate for distribution sector
- Revenue growth of 6.8% with stable profitability indicates resilient demand and execution quality
- Strong cash generation with $1.09B of free cash flow and low capital intensity supports balance sheet flexibility
- Healthy financial structure for the business model, with 16.8x interest coverage and current/quick ratios above 1.0x
CDW Stock Risks: CDW Corp Investment Risks
- High financial leverage (1.81x D/E) with $4.6B long-term debt against $2.6B equity raises refinancing and economic cycle risk
- Tight liquidity ratios (1.16x current, 1.06x quick) suggest working capital constraints and limited financial flexibility
- Profitability growth lagging revenue growth (EPS +1.4% vs Revenue +6.8%) indicates margin compression or cost inflation pressures
- Net income declined 1.0% YoY despite revenue growth, which may signal margin pressure or higher financing/tax costs
- Leverage is elevated with $4.62B in long-term debt and 1.77x debt-to-equity
- Net margin of 4.8% leaves limited room for operational missteps or weaker enterprise spending
Key Metrics to Watch
- Debt/Equity ratio trend and absolute debt levels relative to operating cash flow capacity
- Gross margin sustainability and EPS growth acceleration relative to revenue growth
- Working capital efficiency and cash conversion cycle given tight current ratio
- Operating margin and net income conversion on future revenue growth
- Free cash flow generation relative to debt levels and shareholder returns
CDW Corp (CDW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.4% FCF margin may limit capital allocation flexibility.
CDW Profit Margin, ROE & Profitability Analysis
CDW vs Consumer Sector: How CDW Corp Compares
How CDW Corp compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CDW Corp Stock Overvalued? CDW Valuation Analysis 2026
Based on fundamental analysis, CDW Corp shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CDW Corp Balance Sheet: CDW Debt, Cash & Liquidity
CDW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CDW Corp's revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $8.10 reflects profitable operations.
CDW Revenue Growth, EPS Growth & YoY Performance
CDW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.2B | $224.9M | $1.69 |
| Q3 2025 | $5.5B | $291.0M | $2.21 |
| Q2 2025 | $5.4B | $271.2M | $2.05 |
| Q1 2025 | $4.9B | $216.1M | $1.59 |
| Q3 2024 | $5.5B | $315.5M | $2.32 |
| Q2 2024 | $5.4B | $262.6M | $1.92 |
| Q1 2024 | $4.9B | $216.1M | $1.59 |
| Q3 2023 | $5.6B | $297.8M | $2.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CDW Corp Dividends, Buybacks & Capital Allocation
CDW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CDW Corp (CIK: 0001402057)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CDW
What is the AI rating for CDW?
CDW Corp (CDW) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CDW's key strengths?
Claude: Solid revenue growth at 6.8% YoY with positive operating cash flow ($274.8M). Asset-light business model with low capex requirements ($26.4M) and healthy free cash flow margin (4.4%). ChatGPT: Revenue growth of 6.8% with stable profitability indicates resilient demand and execution quality. Strong cash generation with $1.09B of free cash flow and low capital intensity supports balance sheet flexibility.
What are the risks of investing in CDW?
Claude: High financial leverage (1.81x D/E) with $4.6B long-term debt against $2.6B equity raises refinancing and economic cycle risk. Tight liquidity ratios (1.16x current, 1.06x quick) suggest working capital constraints and limited financial flexibility. ChatGPT: Net income declined 1.0% YoY despite revenue growth, which may signal margin pressure or higher financing/tax costs. Leverage is elevated with $4.62B in long-term debt and 1.77x debt-to-equity.
What is CDW's revenue and growth?
CDW Corp reported revenue of $5.7B.
Does CDW pay dividends?
CDW Corp pays dividends, with $81.1M distributed to shareholders in the trailing twelve months.
Where can I find CDW SEC filings?
Official SEC filings for CDW Corp (CIK: 0001402057) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CDW's EPS?
CDW Corp has a diluted EPS of $1.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CDW's fundamental grade?
Based on our AI fundamental analysis in June 2026, CDW Corp has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CDW stock overvalued or undervalued?
Valuation metrics for CDW: ROE of 9.2% (sector avg: 18%), net margin of 4.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is CDW's AI grade for 2026?
Our dual AI analysis gives CDW Corp a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CDW's free cash flow?
CDW Corp's operating cash flow is $274.8M, with capital expenditures of $26.4M. FCF margin is 4.4%.
How does CDW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.1% (avg: 8%), ROE 9.2% (avg: 18%), current ratio 1.16 (avg: 1.5).
Is CDW Corp carrying too much debt?
CDW has a debt-to-equity ratio of 1.81x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.16 suggests adequate short-term liquidity.