PC Connection, Inc. (CNXN) 10-Year Financial Performance & Capital Metrics

CNXN • • Industrial / General

TechnologyTech DistributorsIT Solutions & Value-Added DistributionEnterprise IT Solutions Providers

AboutPC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories, as well as provides services related to design, configuration, and implementation of IT solutions. The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) that include small office/home office customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales, and marketing programs targeted to specific customer populations, as well as through digital, web, and print media advertising. The company was founded in 1982 and is headquartered in Merrimack, New Hampshire.Show more

Revenue $2.8B -1.7%
EBITDA $110M -5.0%
Net Income $87M +4.6%
EPS (Diluted) 3.29 +4.4%
Gross Margin 18.55% +3.3%
EBITDA Margin 3.93% -3.3%
Operating Margin 3.46% -4.3%
Net Margin 3.11% +6.4%
ROE 9.94% -4.1%
ROIC 10.13% -11.4%
Debt/Equity 0.00 -37.0%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓High quality earnings: Operating CF exceeds net income
✓Efficient asset utilization: 2.2x turnover

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.3%

5Y-0.13%

3Y-1.05%

TTM3.19%

Profit (Net Income) CAGR

10Y7.39%

5Y1.19%

3Y7.6%

TTM-7.12%

EPS CAGR

10Y7.41%

5Y1.2%

3Y7.48%

TTM-5.28%

ROCE

10Y Avg15.4%

5Y Avg12.84%

3Y Avg13.15%

Latest10.85%

Peer Comparison

Enterprise IT Solutions Providers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
CNXNPC Connection, Inc.	1.49B	59.02	17.94	-1.7%	2.91%	9.28%	11.16%	0.00
SNXTD SYNNEX Corporation	12.05B	150.38	15.11	6.94%	1.32%	9.77%	11.53%	0.55
NSITInsight Enterprises, Inc.	2.63B	84.89	12.96	-5.17%	1.72%	9.01%	22.29%	0.66

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	2.57B	2.69B	2.91B	2.7B	2.82B	2.59B	2.89B	3.12B	2.85B	2.8B
Revenue Growth %	0.04%	0.05%	0.08%	-0.07%	0.04%	-0.08%	0.12%	0.08%	-0.09%	-0.02%
Cost of Goods Sold+	2.23B	2.32B	2.53B	2.29B	2.37B	2.17B	2.43B	2.6B	2.34B	2.28B
COGS % of Revenue	0.87%	0.86%	0.87%	0.85%	0.84%	0.84%	0.84%	0.83%	0.82%	0.81%
Gross Profit+	341.02M	371.16M	382.08M	411.09M	451.31M	418.81M	464.58M	526.18M	511.74M	519.79M
Gross Margin %	0.13%	0.14%	0.13%	0.15%	0.16%	0.16%	0.16%	0.17%	0.18%	0.19%
Gross Profit Growth %	0.05%	0.09%	0.03%	0.08%	0.1%	-0.07%	0.11%	0.13%	-0.03%	0.02%
Operating Expenses+	262.46M	287.23M	300.91M	324.43M	339.34M	346.73M	368.06M	405.63M	408.58M	422.73M
OpEx % of Revenue	0.1%	0.11%	0.1%	0.12%	0.12%	0.13%	0.13%	0.13%	0.14%	0.15%
Selling, General & Admin	240.8M	262.7M	300.91M	324.43M	338.63M	345.74M	347.6M	385M	35.3M	38M
SG&A % of Revenue	0.09%	0.1%	0.1%	0.12%	0.12%	0.13%	0.12%	0.12%	0.01%	0.01%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	9M	10.5M	0	2.98M	703K	992K	20.46M	20.63M	373.28M	384.73M
Operating Income+	78.55M	80.52M	77.53M	85.69M	111.97M	72.07M	96.52M	120.55M	103.15M	97.06M
Operating Margin %	0.03%	0.03%	0.03%	0.03%	0.04%	0.03%	0.03%	0.04%	0.04%	0.03%
Operating Income Growth %	0.1%	0.03%	-0.04%	0.11%	0.31%	-0.36%	0.34%	0.25%	-0.14%	-0.06%
EBITDA+	87.52M	90.97M	89.37M	99.75M	125.29M	85.68M	108.72M	132.55M	115.81M	110.05M
EBITDA Margin %	0.03%	0.03%	0.03%	0.04%	0.04%	0.03%	0.04%	0.04%	0.04%	0.04%
EBITDA Growth %	0.1%	0.04%	-0.02%	0.12%	0.26%	-0.32%	0.27%	0.22%	-0.13%	-0.05%
D&A (Non-Cash Add-back)	8.96M	10.45M	11.84M	14.06M	13.31M	13.6M	12.2M	12M	12.65M	12.98M
EBIT	78.55M	83.96M	77.63M	88.81M	112.67M	73.07M	96.48M	120.58M	105.57M	97.48M
Net Interest Income+	-87K	-67K	98K	2.98M	707K	61K	0	0	0	18.73M
Interest Income	0	0	98K	3.12M	810K	168K	0	0	0	18.73M
Interest Expense	87K	67K	0	145K	103K	107K	0	0	0	0
Other Income/Expense	-87K	-67K	98K	2.98M	707K	1.12M	5K	1.08M	9.96M	20.43M
Pretax Income+	78.47M	80.45M	77.63M	88.66M	112.68M	73.2M	96.52M	121.64M	113.11M	117.49M
Pretax Margin %	0.03%	0.03%	0.03%	0.03%	0.04%	0.03%	0.03%	0.04%	0.04%	0.04%
Income Tax+	31.64M	32.34M	22.77M	24.07M	30.57M	17.43M	26.62M	32.42M	29.84M	30.39M
Effective Tax Rate %	0.6%	0.6%	0.71%	0.73%	0.73%	0.76%	0.72%	0.73%	0.74%	0.74%
Net Income+	46.83M	48.11M	54.86M	64.59M	82.11M	55.77M	69.91M	89.22M	83.27M	87.09M
Net Margin %	0.02%	0.02%	0.02%	0.02%	0.03%	0.02%	0.02%	0.03%	0.03%	0.03%
Net Income Growth %	0.1%	0.03%	0.14%	0.18%	0.27%	-0.32%	0.25%	0.28%	-0.07%	0.05%
Net Income (Continuing)	46.83M	48.11M	54.86M	64.59M	82.11M	55.77M	69.91M	89.22M	83.27M	87.09M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.76	1.80	2.04	2.41	3.10	2.12	2.65	3.37	3.15	3.29
EPS Growth %	0.09%	0.02%	0.13%	0.18%	0.29%	-0.32%	0.25%	0.27%	-0.07%	0.04%
EPS (Basic)	1.77	1.81	2.05	2.42	3.12	2.13	2.67	3.40	3.17	3.31
Diluted Shares Outstanding	26.62M	26.72M	26.89M	26.85M	26.5M	26.34M	26.36M	26.44M	26.43M	26.51M
Basic Shares Outstanding	26.4M	26.53M	26.77M	26.72M	26.34M	26.16M	26.2M	26.28M	26.29M	26.32M
Dividend Payout Ratio	0.23%	0.22%	0.16%	0.14%	0.1%	0.15%	0.49%	0.1%	0.1%	0.12%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	552.85M	559.17M	616.1M	669.18M	776.41M	858.98M	932.41M	953.79M	1.05B	1.17B
Cash & Short-Term Investments	80.19M	49.18M	49.99M	91.7M	90.06M	95.66M	108.31M	122.93M	297.19M	442.61M
Cash Only	80.19M	49.18M	49.99M	91.7M	90.06M	95.66M	108.31M	122.93M	144.95M	178.32M
Short-Term Investments	0	0	0	0	0	0	0	0	152.23M	264.3M
Accounts Receivable	357.72M	414M	453.62M	448.62M	551.01M	611.02M	607.53M	610.28M	611.18M	613.83M
Days Sales Outstanding	50.73	56.12	56.86	60.66	71.32	86.1	76.66	71.28	78.26	79.96
Inventory	102.78M	90.53M	106.75M	119.19M	124.67M	140.87M	206.56M	208.68M	124.18M	95.05M
Days Inventory Outstanding	16.8	14.23	15.4	19.01	19.21	23.68	31.05	29.31	19.38	15.2
Other Current Assets	7.91M	0	0	0	10.67M	11.44M	0	11.9M	16.09M	15.36M
Total Non-Current Assets+	86.22M	126.96M	131.76M	136.18M	170.25M	167.92M	150.97M	146.03M	139.74M	132.5M
Property, Plant & Equipment	32.23M	39.4M	41.49M	51.8M	78.07M	74.36M	70.59M	66.73M	61M	55.6M
Fixed Asset Turnover	79.87x	68.34x	70.18x	52.11x	36.12x	34.84x	40.98x	46.83x	46.73x	50.40x
Goodwill	51.28M	73.6M	73.6M	73.6M	73.6M	73.6M	73.6M	73.6M	73.6M	73.6M
Intangible Assets	1.67M	12.59M	11.03M	9.56M	8.31M	7.09M	5.87M	4.65M	3.43M	2.21M
Long-Term Investments	-7.91M	-19.6M	-15.7M	-17.18M	0	0	0	0	0	0
Other Non-Current Assets	1.05M	1.37M	5.64M	1.21M	947K	1.34M	910K	1.05M	1.71M	1.1M
Total Assets+	639.07M	686.13M	747.85M	805.36M	946.66M	1.03B	1.08B	1.1B	1.19B	1.3B
Asset Turnover	4.03x	3.92x	3.89x	3.35x	2.98x	2.52x	2.67x	2.84x	2.40x	2.16x
Asset Growth %	0.18%	0.07%	0.09%	0.08%	0.18%	0.08%	0.05%	0.02%	0.08%	0.09%
Total Current Liabilities+	222M	230.25M	248.01M	259.8M	308.92M	342.26M	374.63M	310.52M	327.96M	371.2M
Accounts Payable	166.52M	177.86M	194.26M	201.64M	235.64M	266.85M	281.84M	232.64M	263.68M	300.24M
Days Payables Outstanding	27.22	27.97	28.03	32.16	36.31	44.85	42.37	32.67	41.15	48.02
Short-Term Debt	0	0	0	0	4.32M	3.93M	0	0	0	0
Deferred Revenue (Current)	0	0	0	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	0	0	31.1M	8.88M	34.97M	50.15M	14.51M	15.23M	11.55M	11.59M
Current Ratio	2.49x	2.43x	2.48x	2.58x	2.51x	2.51x	2.49x	3.07x	3.20x	3.14x
Quick Ratio	2.03x	2.04x	2.05x	2.12x	2.11x	2.10x	1.94x	2.40x	2.82x	2.89x
Cash Conversion Cycle	40.31	42.39	44.23	47.51	54.22	64.92	65.34	67.92	56.49	47.14
Total Non-Current Liabilities+	24.62M	22.44M	17.58M	19.65M	40.43M	48.32M	26.28M	23.13M	19.65M	17.16M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	10.33M	9.63M	6.79M	4.99M	3.18M	1.55M
Deferred Tax Liabilities	21.61M	19.6M	15.7M	17.18M	29.5M	30.06M	19.28M	17.97M	15.84M	15.09M
Other Non-Current Liabilities	3M	22.44M	1.89M	2.47M	600K	8.63M	211K	170K	624K	516K
Total Liabilities	246.62M	252.69M	265.6M	279.45M	349.35M	390.58M	400.91M	333.65M	347.61M	388.36M
Total Debt+	0	0	0	0	14.65M	13.56M	10.21M	8.16M	4.91M	3.36M
Net Debt	-80.19M	-49.18M	-49.99M	-91.7M	-75.41M	-82.1M	-98.1M	-114.77M	-140.04M	-174.96M
Debt / Equity	-	-	-	-	0.02x	0.02x	0.01x	0.01x	0.01x	0.00x
Debt / EBITDA	-	-	-	-	0.12x	0.16x	0.09x	0.06x	0.04x	0.03x
Net Debt / EBITDA	-0.92x	-0.54x	-0.56x	-0.92x	-0.60x	-0.96x	-0.90x	-0.87x	-1.21x	-1.59x
Interest Coverage	902.92x	1201.79x	-	590.94x	1087.11x	673.59x	-	-	-	-
Total Equity+	392.45M	433.44M	482.25M	525.9M	597.31M	636.33M	682.47M	766.17M	840.77M	910.99M
Equity Growth %	0.11%	0.1%	0.11%	0.09%	0.14%	0.07%	0.07%	0.12%	0.1%	0.08%
Book Value per Share	14.74	16.22	17.93	19.58	22.54	24.16	25.89	28.97	31.81	34.37
Total Shareholders' Equity	392.45M	433.44M	482.25M	525.9M	597.31M	636.33M	682.47M	766.17M	840.77M	910.99M
Common Stock	284K	285K	287K	288K	288K	289K	290K	291K	293K	294K
Retained Earnings	298.87M	337.94M	383.67M	441.01M	514.69M	562.08M	605.77M	686.04M	760.9M	837.47M
Treasury Stock	-15.86M	-15.86M	-15.86M	-31.24M	-35.72M	-45.94M	-45.94M	-45.94M	-51.38M	-63.98M
Accumulated OCI	-66.03M	-68.12M	-57.79M	0	0	0	0	0	81K	174K
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	30.86M	33.59M	19.32M	86.84M	36.6M	36.1M	57.75M	34.89M	197.95M	173.87M
Operating CF Margin %	0.01%	0.01%	0.01%	0.03%	0.01%	0.01%	0.02%	0.01%	0.07%	0.06%
Operating CF Growth %	-0.13%	0.09%	-0.42%	3.49%	-0.58%	-0.01%	0.6%	-0.4%	4.67%	-0.12%
Net Income	46.83M	48.11M	54.86M	64.59M	82.11M	55.77M	69.91M	89.22M	83.27M	87.09M
Depreciation & Amortization	8.96M	10.45M	11.84M	14.06M	13.31M	13.6M	12.2M	11.98M	12.65M	12.98M
Stock-Based Compensation	994K	1.05M	741K	1.08M	1.86M	2.67M	4.23M	5.67M	7.02M	8.47M
Deferred Taxes	2.65M	2.99M	-3.91M	1.49M	2.99M	-1.65M	753K	-1.31M	-2.15M	-777K
Other Non-Cash Items	589K	452K	1.68M	1.73M	238K	2.28M	3.27M	3.27M	897K	-2.26M
Working Capital Changes	-29.16M	-29.47M	-45.89M	3.88M	-63.91M	-36.58M	-32.61M	-73.94M	96.26M	68.35M
Change in Receivables	-64.22M	-33.84M	-39.46M	14.87M	-101.95M	-63.65M	-1.32M	-6M	1.6M	-6.51M
Change in Inventory	-11.86M	12.4M	-16.22M	-23.31M	-5.47M	-16.2M	-65.69M	-2.13M	84.5M	29.13M
Change in Payables	41.32M	-3.01M	24.93M	5.72M	34.96M	32.52M	14.81M	-49.06M	31.15M	36.45M
Cash from Investing+	-12.79M	-54.88M	-11.8M	-21.24M	-25.66M	-11.03M	-8.73M	-9.08M	-160.2M	-115.29M
Capital Expenditures	-12.79M	-11.88M	-11.8M	-21.24M	-25.66M	-11.03M	-10.3M	-9.08M	-9.6M	-7.58M
CapEx % of Revenue	0%	0%	0%	0.01%	0.01%	0%	0%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-450K	-42.99M	-11.8K	-21.24M	0	0	1.57M	0	0	0
Cash from Financing+	1.2M	-9.72M	-6.71M	-23.89M	-12.59M	-19.47M	-36.37M	-11.19M	-15.73M	-25.22M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-10.59M	-10.59M	-9.04M	-9.12M	-8.45M	-8.43M	-34.6M	-8.95M	-8.41M	-10.53M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	11.79M	872K	2.33M	609K	340K	-821K	-1.77M	-2.24M	-1.93M	-2.32M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	18.07M	21.7M	7.52M	65.6M	10.95M	25.07M	47.45M	25.81M	188.36M	166.29M
FCF Margin %	0.01%	0.01%	0%	0.02%	0%	0.01%	0.02%	0.01%	0.07%	0.06%
FCF Growth %	-0.35%	0.2%	-0.65%	7.73%	-0.83%	1.29%	0.89%	-0.46%	6.3%	-0.12%
FCF per Share	0.68	0.81	0.28	2.44	0.41	0.95	1.80	0.98	7.13	6.27
FCF Conversion (FCF/Net Income)	0.66x	0.70x	0.35x	1.34x	0.45x	0.65x	0.83x	0.39x	2.38x	2.00x
Interest Paid	0	0	0	0	0	0	0	4K	24K	6K
Taxes Paid	30.37M	29.74M	28.93M	19.95M	28.46M	19.44M	21.46M	33.69M	41.67M	29.3M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	12.55%	11.65%	11.98%	12.81%	14.62%	9.04%	10.6%	12.32%	10.36%	9.94%
Return on Invested Capital (ROIC)	19.46%	17.34%	14.24%	14.83%	17.57%	10.05%	12.72%	14.63%	11.44%	10.13%
Gross Margin	13.25%	13.78%	13.12%	15.23%	16%	16.17%	16.06%	16.84%	17.95%	18.55%
Net Margin	1.82%	1.79%	1.88%	2.39%	2.91%	2.15%	2.42%	2.85%	2.92%	3.11%
Debt / Equity	-	-	-	-	0.02x	0.02x	0.01x	0.01x	0.01x	0.00x
Interest Coverage	902.92x	1201.79x	-	590.94x	1087.11x	673.59x	-	-	-	-
FCF Conversion	0.66x	0.70x	0.35x	1.34x	0.45x	0.65x	0.83x	0.39x	2.38x	2.00x
Revenue Growth	4.49%	4.61%	8.14%	-7.29%	4.47%	-8.15%	11.67%	8.03%	-8.78%	-1.7%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Large Account	961.01M	1.01B	1.13B	1.17B	1.19B	1.12B	1.25B	1.32B	1.2B	1.18B
Large Account Growth	-	5.30%	11.84%	2.94%	2.46%	-6.55%	12.00%	5.99%	-9.30%	-1.66%
Small and Medium Sized Businesses segment	-	-	-	-	-	-	1.1B	1.25B	1.08B	1.05B
Small and Medium Sized Businesses segment Growth	-	-	-	-	-	-	-	13.37%	-13.63%	-2.46%
Public Sector	572.37M	589.42M	621.42M	506.43M	566.16M	508.69M	544.64M	555.32M	573.91M	571.83M
Public Sector Growth	-	2.98%	5.43%	-18.50%	11.80%	-10.15%	7.07%	1.96%	3.35%	-0.36%
Small And Medium Sized Businesses	1.04B	1.09B	1.16B	1.03B	1.06B	966.03M	-	-	-	-
Small And Medium Sized Businesses Growth	-	4.86%	6.18%	-11.28%	3.13%	-8.87%	-	-	-	-

Frequently Asked Questions

Valuation & Price

PC Connection, Inc. (CNXN) has a price-to-earnings (P/E) ratio of 17.9x. This is roughly in line with market averages.

Growth & Financials

PC Connection, Inc. (CNXN) reported $2.88B in revenue for fiscal year 2024. This represents a 37% increase from $2.10B in 2011.

PC Connection, Inc. (CNXN) saw revenue decline by 1.7% over the past year.

Yes, PC Connection, Inc. (CNXN) is profitable, generating $83.7M in net income for fiscal year 2024 (3.1% net margin).

Dividend & Returns

Yes, PC Connection, Inc. (CNXN) pays a dividend with a yield of 0.67%. This makes it attractive for income-focused investors.

PC Connection, Inc. (CNXN) has a return on equity (ROE) of 9.9%. This is below average, suggesting room for improvement.

PC Connection, Inc. (CNXN) generated $55.7M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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