CDWCDW Corporation
Is the business good?
The checks split: nothing decisive, though returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 42% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CDW?
CDW Corporation earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 7.8 points above what the capital costs: growth creates value
- Operating margin
- 7.1%
Operating margin · Information Technology Services median 8.0% · 12 months to Q2 2026
- Cash conversion
- 0.79×
Cash conversion · 0.91× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −3.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.4% |
| FY2021 | 6.8% |
| FY2022 | 7.3% |
| FY2023 | 7.9% |
| FY2024 | 7.9% |
| FY2025 | 7.4% |
Details›
- Gross margin12 months to Q2 2026
- 21%
- Operating margin12 months to Q2 2026
- 7.1%
- Net margin12 months to Q2 2026
- 4.6%
- Free cash flow margin
- 3.7%
- Revenue, trailing twelve months
- $23.5B
- Free cash flow, trailing twelve months
- $860M
- Net income, trailing twelve months
- $1.08B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
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