CDW Corporation (CDW)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the numbers rather than the story. In fiscal 2025, CDW reported revenue of $22.4B and net income of $1.1B, or diluted EPS of $8.08; fiscal 2024 was $21.0B, $1.1B, and $7.97, so sales grew while profit was essentially flat. The latest filed quarter, fiscal Q2 2026, had revenue of $6.6B, net income of $274.4M, and diluted EPS of $2.15. The business is profitable, but the 4.18% net margin in that quarter tells me this is a competitive, low-margin distribution model unless scale or service mix gives it an edge I cannot verify from the data. The high FairStock ROE of 44.01% is flattered by leverage: debt-to-equity is 2.63, while ROCE is only 6.59%. An Altman Z-Score of 1.27 and a Piotroski F-Score of 6/9 point to a balance sheet and operating trends that need watching, not a fortress. Valuation at the 2026-10-26 close of $163.23 is not Graham-cheap: FairStock P/E is 19.62, P/B 8.38, PEG 16.81, EV/EBITDA 13.27, and the Graham Number is $60.40, giving a negative margin of safety of -173.36%. The 4.2% FCF yield on $860.2M trailing free cash flow is reasonable but not a bargain. FairStock labels it a SLOW GROWER, with its rules computing profit growth of 6.2% a year over five years and revenue growth of 4.0% from filed annual results. I would want a wider margin of safety and better returns on capital before calling it compelling.

In plain English: CDW sells computers, software and tech services to businesses, schools and governments. It is profitable and generates cash, but it carries a lot of debt and earns only a modest return on the money tied up in the business. At the recent price, the shares look expensive compared with conservative value measures.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer