# CDW Corporation (CDW) — Stock CV

CDW Corporation is a $17.8B consumer company. Revenue grew 7.4% over the last year, it keeps 5¢ of every dollar of sales as profit, and its net debt equals ~4.7 years of free cash flow. It trades at 16.5× earnings — in the cheapest third of its own history.

> CDW Corp is a multi-brand provider of information technology (IT) solutions to businesses, government, education, and healthcare customers in the United States, the United Kingdom, and Canada.

## Identity

- **Ticker**: CDW
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Catalog & Mail-Order Houses
- **Headquarters**: VERNON HILLS, IL
- **Employees**: 14 800
- **Website**: https://www.cdw.com
- **Market cap**: $17.8B
- **Last price**: $142.17
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $23.5B
- **Net income**: $1.08B
- **Free cash flow**: $860M
- **Net debt**: $4.00B
- **P/E**: 16.5
- **Revenue growth (YoY)**: 7.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 82 |
| Growth | 49 |
| Profitability | 56 |
| Health | 42 |
| Quality | 75 |
| Moat | 62 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +7.4% YoY
- [x] Profitable — $1.08B TTM
- [ ] Profit growing — -0.3% YoY
- [x] Generates cash — $860M TTM
- [x] Debt under control — ~4.7y of cash flow to repay
- [x] Established company — $17.8B market cap
- [x] Not printing shares — -8.8% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 30/100
- [x] Pays a dividend — yield 1.83%
- [x] Valuation not extreme — P/E 16.5

## Experience (career milestones)

- **Dec 18, 2023** — CDW became a component of the Nasdaq-100 index
- **FY2022** — Best year on record: $1.11B net income
- **2021** — CDW announced the acquisition of Sirius Computer Solutions, Inc
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $14.0B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2015** — The company announced that it had acquired the remaining 65% of Kelway Ltd., a London based…
- **Jul 2, 2013** — It went public again through an initial public offering on the NASDAQ market on July 2, 2013, under the name CDW…
- **2007** — Chicago based private equity firms Madison Dearborn Partners and Providence Equity Partners…
- **2006** — CDW acquired Berbee, a reseller of IBM, Cisco
- **2005** — CDW launched BizTech magazine, which it publishes on quarterly basis
- **2003** — It was CDW's second major acquisition after purchasing Micro Warehouse in September 2003
- **1984** — CDW was originally incorporated in 1984 as "MPK Computing" by its founder Michael Krasny and John Marks

## Strengths

- Interest covered 7.3× by operating earnings
- High returns on invested capital (ROIC 16.1%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $20.8B | $989M | $685M |
| FY2022 | $23.7B | $1.11B | $1.21B |
| FY2023 | $21.4B | $1.10B | $1.45B |
| FY2024 | $21.0B | $1.08B | $1.15B |
| FY2025 | $22.4B | $1.07B | $1.09B |

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Source: https://stockcv.com/CDW — derived from company filings; may be delayed or incomplete. Information, not investment advice.