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PC Connection, Inc. (CNXN) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

PC Connection, Inc.

CNXNMarket cap $2.33BPrice $92.4

Country🇺🇸United States

SectorTechnology

IndustryElectronic Equipment

Sells IT hardware, software, and cloud solutions to businesses, government agencies, and schools across the country. This unglamorous middleman quietly generates billions in revenue connecting corporate America to the tech it runs on daily.

In Bastion Portfolios?

52W Return+53%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-3%2

Revenue Forecast

Rev CAGR (1y)+8%5

Rev CAGR (3y)+4%3

Rev CAGR (5y)+3%3

Earnings Forecast

EPS Growth Y+1+28%8

EPS Growth Y+2+7%6

EPS Growth Y+3+2%4

Quality

Margins

EBIT Margin4%2

Net Income Margin3%3

Free Cash Flow Margin1%3

Debt

Net Debt/EBITDA-2.310

Efficiency

ROE10%5

ROA7%7

Earnings Stability55

GEAR+WEAK32

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)214

P/E Ratio (Forward 3y)203

P/BV2.46

EV Multiples

EV/EBITDA Fwd135

EV/EBIT Fwd156

Yield

Free Cash Flow Yield1.5%4

Dividend Yield0.9%3

Momentum

Short term

1 month return+10%10

3 month return+25%10

YTD return+61%10

Mid term

Price vs 52wHigh98%10

1 year return+57%9

Long term

3 year return+74%7

5 year return+115%8

Risk Shield

Price Risk

Beta0.85

Volatility25%8

Free Cash Flow

Free Cash Flow Margin1%3

Free Cash Flow Yield1.5%4

Quality

ROCE13%7

Earnings Stability55

Net Debt/EBITDA-2.310

02Growth

Is it actually growing, and how fast?

CNXNPC Connection

Revenue FY25$2.9B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-3%2

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+28%8

EPS growth, FY27E+7%6

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 4%/yr).

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

After shrinking over the last 3 years, revenue is set to grow 4%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue fell 3%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG96 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+10%10

3-month return+25%10

YTD return+61%10

MID & LONG-TERM▾SCORE

% of 52-week high98%10

1-year return+57%9

3-year return+74%7

5-year return+115%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +74% over three years and +115% over five, ahead of 70% of the market.

It's up 57% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+10%), over three months (+25%) and so far this year (+61%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on PC Connection, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

CNXNPC Connection

Revenue FY25$2.9B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-3%2

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+28%8

EPS growth, FY27E+7%6

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 4%/yr).

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

After shrinking over the last 3 years, revenue is set to grow 4%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue fell 3%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG96 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+10%10

3-month return+25%10

YTD return+61%10

MID & LONG-TERM▾SCORE

% of 52-week high98%10

1-year return+57%9

3-year return+74%7

5-year return+115%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +74% over three years and +115% over five, ahead of 70% of the market.

It's up 57% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+10%), over three months (+25%) and so far this year (+61%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on PC Connection, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community