(CNXN) PC Connection - Overview
Stock: Hardware, Software, Services, Accessories, Networking
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.94% |
| Yield on Cost 5y | 1.15% |
| Yield CAGR 5y | -17.89% |
| Payout Consistency | 78.8% |
| Payout Ratio | 23.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 28.3% |
| Relative Tail Risk | -10.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.19 |
| Alpha | -6.13 |
| Character TTM | |
|---|---|
| Beta | 0.609 |
| Beta Downside | 0.494 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.26% |
| CAGR/Max DD | 0.66 |
Description: CNXN PC Connection January 15, 2026
PC Connection, Inc. (NASDAQ: CNXN) delivers a broad portfolio of information-technology solutions-including hardware, software, networking, and data-center products-plus managed and professional services. The firm structures its business across three segments: Enterprise Solutions, Business Solutions, and Public Sector Solutions, targeting everything from small-office/home-office (SOHO) customers to large enterprises and government/education institutions.
Operating primarily through a suite of e-commerce sites (e.g., connection.com, connection.com/enterprise, connection.com/publicsector, cnxnhelix.com, macconnection.com), the company reaches its clientele via outbound inside and field sales, digital advertising, and targeted marketing programs. Founded in 1982 and headquartered in Merrimack, New Hampshire, PC Connection has built a reputation as a value-added reseller within the U.S. technology distribution space.
Key performance indicators from the most recent fiscal year (FY 2023) show revenue of approximately $1.4 billion, a year-over-year growth of 5.2%, and an operating margin of 3.1%, reflecting modest expansion amid a competitive distributor landscape. The sector’s growth is being driven by sustained enterprise spending on cloud migration and data-center modernization, while macro-economic factors such as corporate IT budget constraints and the ongoing shortage of skilled IT staff influence demand for managed services.
Analysts note that PC Connection’s focus on high-touch service and its diversified customer base help mitigate the pricing pressure typical of pure-play hardware distributors, but the company remains vulnerable to fluctuations in discretionary IT spend and to supply-chain disruptions that affect inventory turnover.
For a deeper quantitative assessment, see the ValueRay analysis of CNXN.
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income: 83.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -7.67 > 1.0 |
| NWC/Revenue: 27.44% < 20% (prev 28.11%; Δ -0.67% < -1%) |
| CFO/TA 0.05 > 3% & CFO 63.3m > Net Income 83.7m |
| Net Debt (-187.4m) to EBITDA (119.9m): -1.56 < 3 |
| Current Ratio: 3.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.5m) vs 12m ago -3.82% < -2% |
| Gross Margin: 18.53% > 18% (prev 0.19%; Δ 1835 % > 0.5%) |
| Asset Turnover: 222.2% > 50% (prev 217.0%; Δ 5.21% > 0%) |
| Interest Coverage Ratio: -11.70 > 6 (EBITDA TTM 119.9m / Interest Expense TTM -8.97m) |
Altman Z'' 9.05
| A: 0.61 (Total Current Assets 1.17b - Total Current Liabilities 384.1m) / Total Assets 1.31b |
| B: 0.68 (Retained Earnings 889.0m / Total Assets 1.31b) |
| C: 0.08 (EBIT TTM 104.9m / Avg Total Assets 1.30b) |
| D: 2.21 (Book Value of Equity 889.3m / Total Liabilities 402.8m) |
| Altman-Z'' Score: 9.05 = AAA |
Beneish M -2.94
| DSRI: 1.02 (Receivables 616.7m/585.1m, Revenue 2.88b/2.79b) |
| GMI: 1.01 (GM 18.53% / 18.63%) |
| AQI: 1.04 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.03 (Revenue 2.88b / 2.79b) |
| TATA: 0.02 (NI 83.7m - CFO 63.3m) / TA 1.31b) |
| Beneish M-Score: -2.94 (Cap -4..+1) = A |
What is the price of CNXN shares?
Over the past week, the price has changed by +10.89%, over one month by +13.85%, over three months by +14.47% and over the past year by +3.50%.
Is CNXN a buy, sell or hold?
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the CNXN price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76 | 14.1% |
| Analysts Target Price | 76 | 14.1% |
| ValueRay Target Price | 73.9 | 10.9% |
CNXN Fundamental Data Overview February 03, 2026
P/E Forward = 17.9856
P/S = 0.5187
P/B = 1.6242
P/EG = 1.8509
Revenue TTM = 2.88b USD
EBIT TTM = 104.9m USD
EBITDA TTM = 119.9m USD
Long Term Debt = 437.0k USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 1.80m USD (from shortTermDebt, last fiscal year)
Debt = 437.0k USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -187.4m USD (from netDebt column, last quarter)
Enterprise Value = 1.09b USD (1.49b + Debt 437.0k - CCE 399.2m)
Interest Coverage Ratio = -11.70 (Ebit TTM 104.9m / Interest Expense TTM -8.97m)
EV/FCF = 19.65x (Enterprise Value 1.09b / FCF TTM 55.7m)
FCF Yield = 5.09% (FCF TTM 55.7m / Enterprise Value 1.09b)
FCF Margin = 1.94% (FCF TTM 55.7m / Revenue TTM 2.88b)
Net Margin = 2.91% (Net Income TTM 83.7m / Revenue TTM 2.88b)
Gross Margin = 18.53% ((Revenue TTM 2.88b - Cost of Revenue TTM 2.35b) / Revenue TTM)
Gross Margin QoQ = 19.55% (prev 18.13%)
Tobins Q-Ratio = 0.84 (Enterprise Value 1.09b / Total Assets 1.31b)
Interest Expense / Debt = 2088 % (Interest Expense 9.12m / Debt 437.0k)
Taxrate = 27.14% (9.21m / 34.0m)
NOPAT = 76.4m (EBIT 104.9m * (1 - 27.14%))
Current Ratio = 3.06 (Total Current Assets 1.17b / Total Current Liabilities 384.1m)
Debt / Equity = 0.00 (Debt 437.0k / totalStockholderEquity, last quarter 902.7m)
Debt / EBITDA = -1.56 (Net Debt -187.4m / EBITDA 119.9m)
Debt / FCF = -3.36 (Net Debt -187.4m / FCF TTM 55.7m)
Total Stockholder Equity = 893.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.46% (Net Income 83.7m / Total Assets 1.31b)
RoE = 9.37% (Net Income TTM 83.7m / Total Stockholder Equity 893.9m)
RoCE = 11.73% (EBIT 104.9m / Capital Employed (Equity 893.9m + L.T.Debt 437.0k))
RoIC = 8.55% (NOPAT 76.4m / Invested Capital 893.9m)
WACC = 8.16% (E(1.49b)/V(1.49b) * Re(8.16%) + (debt cost/tax rate unavailable))
Discount Rate = 8.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.90%
[DCF Debug] Terminal Value 75.97% ; FCFF base≈94.8m ; Y1≈86.0m ; Y5≈74.9m
Fair Price DCF = 59.06 (EV 1.30b - Net Debt -187.4m = Equity 1.49b / Shares 25.2m; r=8.16% [WACC]; 5y FCF grow -11.57% → 2.90% )
EPS Correlation: -29.03 | EPS CAGR: -46.86% | SUE: -4.0 | # QB: 0
Revenue Correlation: -57.34 | Revenue CAGR: -3.17% | SUE: -0.88 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.61 | Chg30d=+0.000 | Revisions Net=-1 | Analysts=2
EPS next Year (2026-12-31): EPS=3.80 | Chg30d=+0.000 | Revisions Net=-1 | Growth EPS=+11.8% | Growth Revenue=+4.5%