📊 CDW Key Takeaways
Investment Thesis
CDW demonstrates solid fundamental strength with consistent revenue growth (+6.8% YoY) and healthy operating margins (7.4%) in the competitive IT distribution sector. The company maintains strong profitability (40.9% ROE) and generates substantial free cash flow ($1.1B), though modest net income decline and elevated leverage (1.77x D/E) warrant monitoring.
CDW Strengths
- Strong revenue growth of 6.8% YoY in a mature retail distribution market
- Exceptional ROE of 40.9% and robust operating margins of 7.4% demonstrate operational efficiency
- Solid free cash flow generation of $1.1B with healthy 4.9% FCF margin supports sustainability
- Excellent interest coverage ratio of 16.8x indicates manageable debt service obligations
- Significant insider activity with 43 Form 4 filings in past 90 days suggests confidence
CDW Risks
- Net income declined 1.0% YoY despite revenue growth, indicating margin pressure or operational headwinds
- Elevated debt-to-equity ratio of 1.77x with $4.6B long-term debt limits financial flexibility
- Modest liquidity position with current ratio of 1.18x leaves limited cushion for adverse conditions
- Quick ratio of 1.10x suggests potential working capital management challenges
- Operating in competitive IT distribution sector with vulnerability to price compression and market disruption
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid competitive pressures
- Free cash flow generation capacity to service debt and fund growth initiatives
- Debt reduction progress and leverage ratio trajectory toward more conservative levels
- Revenue growth quality and customer concentration risk in IT distribution
CDW Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.9% FCF margin may limit capital allocation flexibility.
CDW Profitability Ratios
CDW vs Consumer Sector
How CDW Corp compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CDW Balance Sheet & Liquidity
CDW 5-Year Financial Trend
5-Year Trend Summary: CDW Corp's revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $8.10 reflects profitable operations.
CDW Growth Metrics (YoY)
CDW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.5B | $291.0M | $2.21 |
| Q2 2025 | $5.4B | $271.2M | $2.05 |
| Q1 2025 | $4.9B | $216.1M | $1.59 |
| Q3 2024 | $5.5B | $315.5M | $2.32 |
| Q2 2024 | $5.4B | $262.6M | $1.92 |
| Q1 2024 | $4.9B | $216.1M | $1.59 |
| Q3 2023 | $5.6B | $297.8M | $2.17 |
| Q2 2023 | $5.6B | $262.6M | $1.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CDW Capital Allocation
CDW SEC Filings
Access official SEC EDGAR filings for CDW Corp (CIK: 0001402057)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773869200.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773358485.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773358461.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773358439.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773358396.xml | View → |
❓ Frequently Asked Questions about CDW
What is the AI rating for CDW?
CDW Corp (CDW) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CDW's key strengths?
Strong revenue growth of 6.8% YoY in a mature retail distribution market. Exceptional ROE of 40.9% and robust operating margins of 7.4% demonstrate operational efficiency.
What are the risks of investing in CDW?
Net income declined 1.0% YoY despite revenue growth, indicating margin pressure or operational headwinds. Elevated debt-to-equity ratio of 1.77x with $4.6B long-term debt limits financial flexibility.
What is CDW's revenue and growth?
CDW Corp reported revenue of $22.4B.
Does CDW pay dividends?
CDW Corp pays dividends, with $328.6M distributed to shareholders in the trailing twelve months.
Where can I find CDW SEC filings?
Official SEC filings for CDW Corp (CIK: 0001402057) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CDW's EPS?
CDW Corp has a diluted EPS of $8.08.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.