Is the business good?
How good a business is CNXN?
PC Connection, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.2 points above what the capital costs: growth creates value
- Operating margin
- 3.6%
Operating margin · Electronics & Computer Distribution median 3.0% · 12 months to Q1 2026
- Cash conversion
- 1.42×
Cash conversion · 0.65× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 2.8% |
| FY2021 | 3.3% |
| FY2022 | 3.9% |
| FY2023 | 3.6% |
| FY2024 | 3.5% |
| FY2025 | 3.5% |
Details›
- Gross margin12 months to Q1 2026
- 19%
- Operating margin12 months to Q1 2026
- 3.6%
- Net margin12 months to Q1 2026
- 3.0%
- Free cash flow margin
- 4.3%
- Revenue, trailing twelve months
- $2.89B
- Free cash flow, trailing twelve months
- $124M
- Net income, trailing twelve months
- $87M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Electronics & Computer Distribution
Ranks #6 of 6 by Smart Score