CDW Corp (CDW, Financial), a leading player in the software industry, is currently trading at $198.41 with a market capitalization of $26.76 billion. The company's stock price has seen a gain of 5.91% today and an impressive 8.10% over the past four weeks. CDW Corp's GF Score stands at 92 out of 100, indicating the highest outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which is closely correlated with the long-term performance of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
CDW Corp's Financial Strength rank is 5 out of 10. This rank measures the robustness of a company's financial situation, considering factors such as interest coverage (7.18), debt to revenue ratio (0.26), and Altman Z score (3.52). A higher score indicates a stronger financial position. However, the rank of 5 out of 10 suggests that CDW Corp has a moderate financial strength.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, indicating high profitability. This rank is based on factors such as Operating Margin (7.44%), Piotroski F-Score (6 out of 9), and a consistent profitability trend over the past 10 years as shown by its business predictability rank of 4 stars out of 5. The high profitability rank suggests that CDW Corp's business is likely to remain profitable.
Growth Rank Analysis
CDW Corp's Growth Rank is a perfect 10 out of 10, reflecting strong revenue and profitability growth. This rank is calculated using criteria such as 5-year revenue growth rate (12.50%), 3-year revenue growth rate (12.40%), and 5-year EBITDA growth rate (15.70%). The high growth rank indicates that CDW Corp has demonstrated robust growth in its business operations.
GF Value Rank Analysis
The company's GF Value Rank is 5 out of 10, suggesting a fair valuation. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.
Momentum Rank Analysis
CDW Corp's Momentum Rank is 8 out of 10, indicating strong price momentum. This rank is determined using the standardized momentum ratio and other momentum indicators, suggesting that CDW Corp's stock price has a strong upward trend.
Competitive Analysis
When compared to its main competitors in the software industry, CDW Corp holds a competitive position. Gartner Inc (IT, Financial) has a GF Score of 91, Broadridge Financial Solutions Inc (BR, Financial) has a GF Score of 92, and Cognizant Technology Solutions Corp (CTSH, Financial) has a GF Score of 93. This comparison suggests that CDW Corp is a strong contender in the software industry. For more details, please visit our competitors page.
In conclusion, CDW Corp's high GF Score, strong profitability, and robust growth make it an attractive investment option. However, investors should also consider the company's moderate financial strength and fair valuation before making investment decisions.
