Investigating CDW's Standing In Electronic Equipment, Instruments & Components Industry Compared To Competitors
Portfolio Pulse from Benzinga Insights
CDW (NASDAQ:CDW) is evaluated against competitors in the Electronic Equipment, Instruments & Components industry. CDW shows a premium valuation with higher P/E, P/B, and P/S ratios than the industry average. Its ROE, EBITDA, and gross profit are significantly above the industry average, indicating strong profitability and cash flow. However, CDW's revenue growth is below the industry average, and it has a high debt-to-equity ratio, suggesting financial risk and slower sales growth.
November 20, 2023 | 4:00 pm
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CDW's premium valuation and strong profitability metrics may attract investors, but concerns over its revenue decline and high debt levels could temper enthusiasm.
CDW's higher P/E, P/B, and P/S ratios compared to the industry average suggest a premium valuation, which could be justified by its strong profitability as indicated by its ROE, EBITDA, and gross profit. However, the lower revenue growth and high debt-to-equity ratio may raise concerns about future growth and financial stability, potentially leading to a neutral short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100