PC Connection Inc. Common Stock (CNXN)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

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

PC Connection is an IT distributor—computer systems, data-center gear, and services—a business with thin margins and few permanent advantages, because customers can shop elsewhere. Still, the filed figures show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of $854.0M, net income of $33.2M, and diluted EPS of $1.31, up from fiscal Q2 2025, the quarter ended 2025-06-30, with revenue of $759.7M, net income of $24.8M, and diluted EPS of $0.97. That is a solid quarterly improvement. The full-year picture is less exciting: FY2025, period ended 2025-12-31, had revenue of $2.9B, net income of $83.7M, and diluted EPS of $3.27, versus FY2024, the year ended 2024-12-31, revenue of $2.8B, net income of $87.1M, and diluted EPS of $3.29, so profit did not rise with sales. The balance sheet is strong, with debt-to-equity of 0.01 and Altman Z-Score of 5.37, but returns are modest: ROE 10.43% and ROCE 5.71%, per FairStock calculations. At the 2026-10-13 close of $95.22, FairStock shows P/E 25.19, P/B 2.52, EV/EBITDA 16.27, FCF yield 1.4%, and a Graham Number of $56.66, which implies a -68.06% margin of safety. The PEG is 0.75, and the FairStock Score is 45/100. Peter Lynch's computed category is STALWART—profit growth of 8.5% a year over five years and revenue growth of 2.1%. This is a decent, conservatively financed distributor, but the price already assumes continued improvement and gives little asset or cash-flow cushion.

In plain English: PC Connection sells computers, data-center equipment, and related technology services to businesses and public-sector buyers. It is growing sales and profit from a year earlier and has almost no debt, but its profit margins are thin. At the recent price, the shares look expensive compared with the company's earnings and asset value; the market is paying a full price unless growth continues.

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

Data as of 2026-10-13 close · note generated 2026-10-15 · 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