# CDW (CDW.US)

Canonical: https://gigainvestors.com/s/CDW

Analysis as of: 2026-10-16T07:27:20.109Z. Financial observations: FY2008–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $154.33 per share; close as of 2026-10-15.

Estimated value: low $119.05 per share, central $135.69 per share, high $157.87 per share. Buy at or below the central value $135.69 per share. Valuation as of 2026-10-16T07:27:20.109Z; scenarios are not confidence intervals.

Expected annual return: 9.1% at the stated quote. About 9.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.08×

- FY2025: 0.07×

- LTM to Jun 2026: 0.07×

### moat: pass

- ROIC, median of available years: 42.5%

- ROIC, second-lowest year: 33.8%

- Typical minus recent gross margin: -2.8 pp

- Typical gross margin (annual median): 18.6%

- Recent gross margin (lower of latest and 3-year median): 21.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.6%

- ROIC including acquisitions, ten-year median: 16.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 42.9%

- FY2018: 49.8%

- FY2019: 42.3%

- FY2020: 49.9%

- FY2021: 31.6%

- FY2022: 42.7%

- FY2023: 59.0%

- FY2024: 41.2%

- FY2025: 33.8%

- LTM to Jun 2026: 36.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.1B

- Net income, five-year total: $5.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 13.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.15×

- FY2023: 1.11×

- FY2024: 1.14×

- FY2025: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 42.9% vs 41.2%

- Per-share earnings: 2.56 to 8.07 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.6%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: $9.3B

- Cumulative retained earnings: $400M

- Diluted shares, 10-year annual growth: -2.6%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.4%

- Per-share value change: $5.51

- Per-share value, starting three-year median: $2.56

- Per-share value, ending three-year median: $8.07

- Buybacks concentrated in cheaper years (correlation): 0.18

- Average buyback yield: 3.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.2B

- Cumulative net income, 10 years: $8.5B

- ROIC, first three-year median: 42.9%

- ROIC, last three-year median: 41.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.56

- FY2017: $3.31

- FY2018: $4.19

- FY2019: $4.99

- FY2020: $5.45

- FY2021: $7.04

- FY2022: $8.14

- FY2023: $8.10

- FY2024: $7.97

- FY2025: $8.07

### accounting: pass

- Sloan accruals: -0.9%

- Receivables to sales index (DSRI): 1.14×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.13×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.24×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: -3.7%

- FY2018: -3.7%

- FY2019: -3.6%

- FY2020: -5.6%

- FY2021: 1.5%

- FY2022: -1.7%

- FY2023: -3.7%

- FY2024: -1.4%

- FY2025: -0.9%

## Holders

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 40% since Mar 2024 · "CDW's Strong Q2 Overshadowed by Gross Margin Pressure, Morgan Stanley Says" (finance.yahoo.com, Aug 2026) · sales +4.8%

Story as of 2026-10-16T09:58:29.084Z; price observation 2026-10-15.

Price needs cash profits to grow 3.1% a year for ten years

- 2025-05-07: CDW (NasdaqGS:CDW) Reports Q1 Earnings Growth; Declares US$0.63 Quarterly Dividend ([finance.yahoo.com](https://finance.yahoo.com/news/cdw-nasdaqgs-cdw-reports-q1-180013255.html))

- 2025-11-05: CDW (CDW) Margin Decline Reinforces Concerns Over Slower Growth Versus Market Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/cdw-cdw-margin-decline-reinforces-201519334.html))

- 2026-08-06: CDW's Strong Q2 Overshadowed by Gross Margin Pressure, Morgan Stanley Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/cdw-apos-strong-q2-overshadowed-151732539.html))

### Sales · FY2025–2026

sales +4.8%; source https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm; observed 2026-02-20.

- FY2017: $15B 

- FY2018: $16B 

- FY2019: $18B 

- FY2020: $18B 

- FY2021: $21B 

- FY2022: $24B 

- FY2023: $21B 

- FY2024: $21B 

- FY2025: $22B 

- FY2026: $24B 

### Gross margin · FY2026

gross margin 21.4%; source https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm; observed 2026-02-20.

- FY2017: 16.5% 

- FY2018: 16.7% 

- FY2019: 16.9% 

- FY2020: 17.4% 

- FY2021: 17.1% 

- FY2022: 19.7% 

- FY2023: 21.8% 

- FY2024: 21.9% 

- FY2025: 21.7% 

- FY2026: 21.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 22.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm (filed 2026-02-20); FY2025: revenue 22424100000; grossProfit 4873400000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CDW.US: CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, collaboration hardware, data storage and servers, desktop computers, and other hardware; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, collaboration and productivity applications, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, and managed services, as well as warranties. It serves business, government, education, and healthcare customers. The company was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. CDW Corporation was founded in 1984 and is based in Vernon Hills, Illinois.

### Why customers stay

Margins ranged from 21.7% to 21.9% during 2023–25; it earns 42.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 21.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 21.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2017,0.42949932794396667],[2018,0.4984853857668821],[2019,0.42266148758929395],[2020,0.4994699667209718],[2021,0.3162909083776123],[2022,0.4271105425630118],[2023,0.5899343698452252],[2024,0.41241078123867103],[2025,0.3383803362082947],[2026,0.3687589711739622]]; median 0.42488601507615287. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 653 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 63500000; owner earnings 616100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 81100000; owner earnings 702900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 86100000; owner earnings 822500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 236300000; owner earnings 767600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 158000000; owner earnings 1056100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 100000000; owner earnings 1079800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 127800000; owner earnings 1277300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 148200000; owner earnings 1226800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 122600000; owner earnings 1230500000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 117100000; owner earnings 1245499999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,78700000],[2017,106900000],[2018,139400000],[2019,183400000],[2020,219600000],[2021,234800000],[2022,282600000],[2023,321500000],[2024,332100000],[2025,328600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 653000000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CDW.US SharesStats.PercentInsiders = 0.45599999999999996 percentage points; cache date 2026-10-16.

### What could break it

"The interruption of the flow of products from suppliers could disrupt our supply chain." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm (filed 2026-02-20); The interruption of the flow of products from suppliers could disrupt our supply chain.

### What the price says

The price assumes cash profits grow 3.1% yearly over ten years; actual growth was 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.03110670939825573. Price 154.33; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.1455180442374853 → FY2025 9.428463277819834. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $44.91 per share

- 2016-11: $51.24 per share

- 2016-12: $52.09 per share

- 2017-01: $51.51 per share

- 2017-02: $58.90 per share

- 2017-03: $57.71 per share

- 2017-04: $59.09 per share

- 2017-05: $60.18 per share

- 2017-06: $62.53 per share

- 2017-07: $63.43 per share

- 2017-08: $63.42 per share

- 2017-09: $66.00 per share

- 2017-10: $70.00 per share

- 2017-11: $70.01 per share

- 2017-12: $69.49 per share

- 2018-01: $74.79 per share

- 2018-02: $72.93 per share

- 2018-03: $70.31 per share

- 2018-04: $71.29 per share

- 2018-05: $80.05 per share

- 2018-06: $80.79 per share

- 2018-07: $84.09 per share

- 2018-08: $87.56 per share

- 2018-09: $88.92 per share

- 2018-10: $90.01 per share

- 2018-11: $92.68 per share

- 2018-12: $81.05 per share

- 2019-01: $83.27 per share

- 2019-02: $93.89 per share

- 2019-03: $96.37 per share

- 2019-04: $105.60 per share

- 2019-05: $98.44 per share

- 2019-06: $111.00 per share

- 2019-07: $118.16 per share

- 2019-08: $115.50 per share

- 2019-09: $123.24 per share

- 2019-10: $127.91 per share

- 2019-11: $135.05 per share

- 2019-12: $142.84 per share

- 2020-01: $130.45 per share

- 2020-02: $114.22 per share

- 2020-03: $93.27 per share

- 2020-04: $110.80 per share

- 2020-05: $110.91 per share

- 2020-06: $116.18 per share

- 2020-07: $116.25 per share

- 2020-08: $113.65 per share

- 2020-09: $119.53 per share

- 2020-10: $122.60 per share

- 2020-11: $130.49 per share

- 2020-12: $131.79 per share

- 2021-01: $131.66 per share

- 2021-02: $156.89 per share

- 2021-03: $165.75 per share

- 2021-04: $178.33 per share

- 2021-05: $165.42 per share

- 2021-06: $174.65 per share

- 2021-07: $183.35 per share

- 2021-08: $200.61 per share

- 2021-09: $182.02 per share

- 2021-10: $186.65 per share

- 2021-11: $189.36 per share

- 2021-12: $204.78 per share

- 2022-01: $189.05 per share

- 2022-02: $172.46 per share

- 2022-03: $178.89 per share

- 2022-04: $163.18 per share

- 2022-05: $169.86 per share

- 2022-06: $157.56 per share

- 2022-07: $181.53 per share

- 2022-08: $170.70 per share

- 2022-09: $156.08 per share

- 2022-10: $172.81 per share

- 2022-11: $188.64 per share

- 2022-12: $178.58 per share

- 2023-01: $196.03 per share

- 2023-02: $202.42 per share

- 2023-03: $194.89 per share

- 2023-04: $169.59 per share

- 2023-05: $171.69 per share

- 2023-06: $183.50 per share

- 2023-07: $187.07 per share

- 2023-08: $211.15 per share

- 2023-09: $201.76 per share

- 2023-10: $200.40 per share

- 2023-11: $210.88 per share

- 2023-12: $227.32 per share

- 2024-01: $226.72 per share

- 2024-02: $246.21 per share

- 2024-03: $255.78 per share

- 2024-04: $241.86 per share

- 2024-05: $223.62 per share

- 2024-06: $223.84 per share

- 2024-07: $218.11 per share

- 2024-08: $225.64 per share

- 2024-09: $226.30 per share

- 2024-10: $188.23 per share

- 2024-11: $175.93 per share

- 2024-12: $174.04 per share

- 2025-01: $199.14 per share

- 2025-02: $178.20 per share

- 2025-03: $160.26 per share

- 2025-04: $160.56 per share

- 2025-05: $180.36 per share

- 2025-06: $178.59 per share

- 2025-07: $174.38 per share

- 2025-08: $164.76 per share

- 2025-09: $159.28 per share

- 2025-10: $159.37 per share

- 2025-11: $144.22 per share

- 2025-12: $136.20 per share

- 2026-01: $126.39 per share

- 2026-02: $122.64 per share

- 2026-03: $121.02 per share

- 2026-04: $136.91 per share

- 2026-05: $125.45 per share

- 2026-06: $140.64 per share

- 2026-07: $147.81 per share

- 2026-08: $151.58 per share

- 2026-09: $128.16 per share

- 2026-10: $154.33 per share

## Annual estimated value (USD per share)

- FY2016: low $29.66 per share, central $33.75 per share, high $39.19 per share

- FY2017: low $42.64 per share, central $48.52 per share, high $56.34 per share

- FY2018: low $59.57 per share, central $78.05 per share, high $91.32 per share

- FY2019: low $60.09 per share, central $68.38 per share, high $79.41 per share

- FY2020: low $73.25 per share, central $82.36 per share, high $94.48 per share

- FY2021: low $82.03 per share, central $93.34 per share, high $108.40 per share

- FY2022: low $130.54 per share, central $190.43 per share, high $223.83 per share

- FY2023: low $123.66 per share, central $179.85 per share, high $211.19 per share

- FY2024: low $131.17 per share, central $190.34 per share, high $223.35 per share

- FY2025: low $108.79 per share, central $123.83 per share, high $143.85 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:59.890Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.