CDW Corporation (CDW)

CDW Corporation (CDW) Technology Profile & Competitive Position

CDW Corporation delivers comprehensive IT solutions, including hardware, software, and services, to diverse sectors across North America and the UK. With a focus on integrated IT solutions and a wide range of offerings, CDW serves as a key technology partner for organizations seeking to optimize their IT infrastructure and operations.

What Is the Investment Thesis for CDW?

CDW Corporation presents a compelling investment case based on its established market position, diverse customer base, and comprehensive IT solutions portfolio. With a market capitalization of $17.04B and a P/E ratio of 16.0, CDW demonstrates financial stability and profitability, supported by a profit margin of 4.7% and a gross margin of 21.6%. The company's dividend yield of 2.40% offers an attractive income stream for investors. Growth catalysts include ongoing digital transformation initiatives across various sectors and CDW's ability to capitalize on the increasing demand for cloud-based solutions and cybersecurity services. A potential risk involves intense competition within the IT solutions market, which could pressure margins and impact market share.

Based on FMP financials and quantitative analysis

CDW Key Highlights

• Market capitalization of $17.04B, reflecting a substantial market presence.
• P/E ratio of 16.0, indicating a potentially undervalued stock relative to earnings.
• Profit margin of 4.7%, demonstrating the company's ability to generate profit from its revenue.
• Gross margin of 21.6%, showcasing the efficiency of CDW's operations and pricing strategies.
• Dividend yield of 2.40%, providing a steady income stream for investors.

Who Are CDW's Competitors?

CDW is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CDW's Key Strengths?

• Comprehensive IT solutions portfolio.
• Strong customer relationships.
• Established presence in key markets.
• Experienced management team.

What Are CDW's Weaknesses?

• Reliance on third-party vendors.
• Exposure to economic cycles.
• Intense competition in the IT services market.
• Potential for margin pressure.

What Could Drive CDW Stock Higher?

• Digital transformation initiatives driving demand for IT solutions.
• Increased adoption of cloud computing and cybersecurity services.
• Potential acquisitions to expand service offerings and market reach.
• Government investments in IT infrastructure modernization.

What Are the Key Risks for CDW?

• Economic downturns impacting IT spending.
• Intense competition in the IT services market.
• Rapid technological advancements rendering existing solutions obsolete.
• Cybersecurity threats and data breaches.
• Supply chain disruptions impacting hardware availability.

What Are the Growth Opportunities for CDW?

• Expansion of Cloud Services: CDW can capitalize on the growing demand for cloud-based solutions. The global cloud computing market is projected to reach $832.1 billion by 2025. CDW can leverage its expertise in cloud migration, management, and security to offer comprehensive cloud solutions to its customers, driving revenue growth and expanding its market share. Timeline: Ongoing.
• Cybersecurity Solutions: With the increasing frequency and sophistication of cyber threats, organizations are investing heavily in cybersecurity solutions. The cybersecurity market is expected to reach $345.4 billion by 2026. CDW can expand its cybersecurity offerings, including threat detection, incident response, and data protection services, to address this growing need and generate significant revenue. Timeline: Ongoing.
• Digital Transformation Initiatives: Businesses across all sectors are undergoing digital transformation to improve efficiency, enhance customer experience, and gain a competitive edge. CDW can provide advisory, implementation, and managed services to support these initiatives, helping organizations modernize their IT infrastructure and adopt new technologies. Timeline: Ongoing.
• Growth in the Public Sector: CDW has a strong presence in the public sector, serving government agencies, educational institutions, and healthcare organizations. Government spending on IT is expected to increase in the coming years, driven by initiatives to modernize infrastructure and improve citizen services. CDW can leverage its expertise and relationships to secure new contracts and expand its market share in this sector. Timeline: Ongoing.
• International Expansion: While CDW already operates in the United States, the United Kingdom, and Canada, there are opportunities to expand its geographic reach to other international markets. By entering new markets, CDW can diversify its revenue streams and tap into new customer bases, driving long-term growth. Timeline: 3-5 years.

What Opportunities Does CDW Have?

• Expansion of cloud services.
• Growth in cybersecurity solutions.
• Digital transformation initiatives.
• Increased government spending on IT.

What Threats Does CDW Face?

• Rapid technological advancements.
• Evolving customer needs.
• Cybersecurity threats.
• Economic downturns.

What Are CDW's Competitive Advantages?

• Established relationships with leading IT vendors.
• Broad portfolio of hardware, software, and services.
• Strong customer relationships and high customer retention rates.
• Extensive industry expertise and technical capabilities.

What Does CDW Do?

Founded in 1984 and headquartered in Vernon Hills, Illinois, CDW Corporation has evolved into a prominent provider of information technology (IT) solutions. Initially focused on direct marketing of computer products, CDW has expanded its offerings to include a broad spectrum of hardware, software, and IT services. The company operates through three segments: Corporate, Small Business, and Public, catering to a diverse clientele across the United States, the United Kingdom, and Canada. CDW's solutions encompass on-premise, hybrid, and cloud capabilities, addressing critical areas such as data center and networking, digital workspace, and security. Its hardware portfolio includes notebooks, mobile devices, network communications equipment, desktop computers, video monitors, and enterprise data storage solutions. Software offerings span application suites, security software, virtualization tools, operating systems, and network management solutions. In addition to product sales, CDW provides a range of services, including advisory and design, software development, implementation, managed services, professional services, configuration, and telecom services. These services are delivered through a combination of in-house expertise and partnerships with third-party service providers. CDW serves a wide array of customers, including government agencies, educational institutions, healthcare organizations, and businesses of all sizes.

What Products and Services Does CDW Offer?

• Provides IT solutions to businesses, government, education, and healthcare organizations.
• Offers hardware products, including notebooks, desktops, and network communications equipment.
• Provides software products, such as application suites, security software, and operating systems.
• Delivers integrated IT solutions, including on-premise, hybrid, and cloud capabilities.
• Offers advisory and design, software development, and implementation services.
• Provides managed, professional, configuration, and telecom services.
• Offers warranties and repair services through third-party providers.

How Does CDW Make Money?

• Sells hardware and software products from leading IT vendors.
• Provides IT services, including consulting, implementation, and managed services.
• Generates revenue through product sales and service contracts.
• Focuses on building long-term relationships with customers.

What Industry Does CDW Operate In?

CDW Corporation operates within the dynamic and competitive IT services industry, which is characterized by rapid technological advancements and evolving customer needs. The industry is experiencing significant growth, driven by trends such as cloud computing, cybersecurity, and digital transformation. CDW competes with a range of companies, from large multinational corporations to smaller specialized firms. The company's ability to offer a comprehensive suite of solutions and services, coupled with its strong customer relationships, positions it favorably within this landscape. The IT services market is projected to continue its growth trajectory, presenting opportunities for CDW to expand its market share and revenue.

Who Are CDW's Key Customers?

• Government agencies
• Educational institutions
• Healthcare organizations
• Small, medium, and large businesses

Company Profile

CDW Corporation operates in the Information Technology Services industry within the Technology sector. It is headquartered in Vernon Hills, US. The company is led by CEO Christine A. Leahy. CDW has traded publicly since 2013.

CDW Corporation Financial Trajectory

CDW Corporation (CDW) reported $5.68B in revenue for Q1 2026, reflecting 3.1% growth compared to the prior quarter. The company recorded net income of $235.4M, with diluted EPS of $1.82. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Technology. Across the four most recent quarters, CDW averaged $2.05 in diluted EPS.

How CDW Corporation Is Valued

CDW Corporation carries a market capitalization of $17.04B, placing it in the large-cap category. Relative to its peer group, CDW's quantitative score of 62/100 is roughly in line with the peer average of 58/100.

ROE 42%Key Financial Metrics

Return on equity for CDW Corporation stands at 42.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.5%, showing how much profit it generates from its asset base. CDW trades at a trailing price-to-earnings ratio of 15.97, below the Technology sector average of ~38x. Its free cash flow yield is 6.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.3%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

CDW Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.42 places it in the grey zone, a middle ground that warrants monitoring.

5/8 beatsEarnings Track Record

CDW Corporation has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.5% above estimates on average.

FY2026 estForward Outlook

Wall Street analysts project CDW Corporation revenue of about $23.55B for fiscal 2026, with EPS near $10.74. The estimate reflects 7 contributing analysts.

Net buyingInsider Activity

Over the past six months, CDW Corporation insiders filed 29 SEC Form 4 transactions — 2 sales and 27 purchases. On net that is roughly 59K shares acquired (about $2.4M) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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