Understanding CDW's Position In Electronic Equipment, Instruments & Components Industry Compared To Competitors
Portfolio Pulse from Benzinga Insights
CDW Corp (NASDAQ:CDW) is analyzed in comparison to its competitors in the Electronic Equipment, Instruments & Components industry. CDW trades at a premium with higher P/E, P/B, and P/S ratios than the industry average. It has a higher ROE, indicating efficient profit generation, and its EBITDA and gross profit are significantly above the industry average. However, CDW's revenue growth is negative and below the industry average. The company also has a higher debt-to-equity ratio compared to its top 4 peers, suggesting increased financial risk.
January 17, 2024 | 4:00 pm
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NEUTRAL IMPACT
CDW's premium valuation and strong profitability metrics may attract investors, but concerns over its negative revenue growth and high debt levels could weigh on the stock.
CDW's high valuation ratios (P/E, P/B, P/S) and strong profitability (ROE, EBITDA, gross profit) suggest a positive outlook, which could support the stock price. However, the negative revenue growth and high debt-to-equity ratio introduce concerns that may offset investor enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100