Latest Ratios: P/E Ratio 19.6x · EV/EBITDA 12.2x · ROE 9.2%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.0B | $1.5B | $1.8B | $1.8B | $1.2B | $1.1B | $1.2B | $1.3B | $798M | $705M | $751M |
| Enterprise Value | $1.8B | $1.3B | $1.7B | $1.6B | $1.1B | $1.0B | $1.2B | $1.2B | $707M | $655M | $701M |
| P/E Ratio → | 19.63 | 17.66 | 21.05 | 21.34 | 13.92 | 16.28 | 22.31 | 16.02 | 12.34 | 12.85 | 15.61 |
| P/S Ratio | 0.63 | 0.52 | 0.66 | 0.62 | 0.40 | 0.39 | 0.48 | 0.47 | 0.30 | 0.24 | 0.28 |
| P/B Ratio | 2.23 | 1.63 | 2.02 | 2.11 | 1.62 | 1.67 | 1.96 | 2.20 | 1.52 | 1.46 | 1.73 |
| P/FCF | — | 25.51 | 11.04 | 9.43 | 48.05 | 23.96 | 49.69 | 120.24 | 12.17 | 93.76 | 34.59 |
| P/OCF | 30.53 | 22.63 | 10.56 | 8.97 | 35.55 | 19.69 | 34.50 | 35.96 | 9.19 | 36.48 | 22.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.45 | 0.59 | 0.57 | 0.36 | 0.36 | 0.45 | 0.44 | 0.26 | 0.22 | 0.26 |
| EV / EBITDA | 12.21 | 11.29 | 15.10 | 14.13 | 8.49 | 9.56 | 13.58 | 9.90 | 7.08 | 7.33 | 7.71 |
| EV / EBIT | 17.64 | 11.33 | 17.04 | 15.50 | 9.33 | 10.77 | 15.92 | 11.01 | 7.96 | 8.44 | 8.35 |
| EV / FCF | — | 22.19 | 9.99 | 8.69 | 43.60 | 21.90 | 46.41 | 113.35 | 10.77 | 87.11 | 32.32 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.8% | 18.8% | 18.6% | 18.0% | 16.8% | 16.1% | 16.2% | 16.0% | 15.2% | 13.1% | 13.8% |
| Operating Margin | 3.6% | 3.6% | 3.5% | 3.6% | 3.9% | 3.3% | 2.8% | 4.0% | 3.2% | 2.7% | 3.0% |
| Net Profit Margin | 2.9% | 2.9% | 3.1% | 2.9% | 2.9% | 2.4% | 2.2% | 2.9% | 2.4% | 1.9% | 1.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.2% | 9.2% | 9.9% | 10.4% | 12.3% | 10.6% | 9.0% | 14.6% | 12.8% | 12.0% | 11.7% |
| ROA | 6.3% | 6.3% | 7.0% | 7.3% | 8.2% | 6.6% | 5.7% | 9.4% | 8.3% | 7.7% | 7.3% |
| ROIC | 10.6% | 10.6% | 10.1% | 11.4% | 14.6% | 12.7% | 10.0% | 17.6% | 14.8% | 14.2% | 17.3% |
| ROCE | 11.0% | 11.0% | 10.9% | 12.5% | 16.1% | 13.9% | 10.9% | 18.9% | 16.4% | 16.2% | 18.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | — | — | — |
| Debt / EBITDA | 0.01 | 0.01 | 0.03 | 0.04 | 0.06 | 0.09 | 0.16 | 0.12 | — | — | — |
| Net Debt / Equity | — | -0.21 | -0.19 | -0.17 | -0.15 | -0.14 | -0.13 | -0.13 | -0.17 | -0.10 | -0.11 |
| Net Debt / EBITDA | -1.69 | -1.69 | -1.59 | -1.21 | -0.87 | -0.90 | -0.96 | -0.60 | -0.92 | -0.56 | -0.54 |
| Debt / FCF | — | -3.31 | -1.05 | -0.74 | -4.45 | -2.07 | -3.28 | -6.89 | -1.40 | -6.65 | -2.27 |
| Interest Coverage | — | — | — | — | — | — | 682.86 | 1093.93 | 612.48 | — | 1253.09 |
Net cash position: cash ($193M) exceeds total debt ($996000)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.90 | 2.90 | 3.14 | 3.20 | 3.07 | 2.49 | 2.51 | 2.51 | 2.58 | 2.48 | 2.43 |
| Quick Ratio | 2.56 | 2.56 | 2.89 | 2.82 | 2.40 | 1.94 | 2.10 | 2.11 | 2.12 | 2.05 | 2.04 |
| Cash Ratio | 0.97 | 0.97 | 1.19 | 0.91 | 0.40 | 0.29 | 0.28 | 0.29 | 0.35 | 0.20 | 0.21 |
| Asset Turnover | — | 2.13 | 2.16 | 2.40 | 2.84 | 2.67 | 2.52 | 2.98 | 3.35 | 3.89 | 3.92 |
| Inventory Turnover | 16.25 | 16.25 | 24.01 | 18.83 | 12.45 | 11.75 | 15.42 | 19.00 | 19.20 | 23.70 | 25.64 |
| Days Sales Outstanding | — | 82.33 | 79.96 | 78.26 | 71.28 | 76.66 | 86.10 | 71.32 | 60.66 | 56.86 | 56.12 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.0% | 0.6% | 0.5% | 0.7% | 3.0% | 0.7% | 0.6% | 1.1% | 1.3% | 1.4% |
| Payout Ratio | 18.3% | 18.3% | 12.1% | 10.1% | — | 49.5% | 15.1% | 10.3% | 14.1% | 16.5% | 22.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 5.7% | 4.7% | 4.7% | 7.2% | 6.1% | 4.5% | 6.2% | 8.1% | 7.8% | 6.4% |
| FCF Yield | — | 3.9% | 9.1% | 10.6% | 2.1% | 4.2% | 2.0% | 0.8% | 8.2% | 1.1% | 2.9% |
| Buyback Yield | 3.8% | 5.2% | 0.7% | 0.3% | 0.2% | 0.2% | 0.8% | 0.3% | 1.9% | 0.1% | 0.1% |
| Total Shareholder Yield | 4.6% | 6.2% | 1.2% | 0.8% | 0.9% | 3.2% | 1.5% | 1.0% | 3.1% | 1.4% | 1.5% |
| Shares Outstanding | — | $26M | $27M | $26M | $26M | $26M | $26M | $27M | $27M | $27M | $27M |
Includes 30+ ratios · 29 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CNXN stock.
PC Connection, Inc.'s current P/E ratio is 19.6x. The historical average is 20.5x. This places it at the 59th percentile of its historical range.
PC Connection, Inc.'s current EV/EBITDA is 12.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
PC Connection, Inc.'s return on equity (ROE) is 9.2%. The historical average is 11.7%.
Based on historical data, PC Connection, Inc. is trading at a P/E of 19.6x. This is at the 59th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PC Connection, Inc.'s current dividend yield is 0.75% with a payout ratio of 18.3%.
PC Connection, Inc. has 18.8% gross margin and 3.6% operating margin.
PC Connection, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Working capital timing volatility
Metrics are mathematically derived from official filings.
Premium Earnings Multiple Versus Thin Margins
Based on the supplied valuation data, CNXN trades at 24.2x trailing earnings and 17.8x forward earnings, a premium to CDW's 19.4x and TD Synnex's 22.0x trailing levels, despite a net margin of only 3.6% in the latest quarter.
The gap between trailing and forward P/E suggests the market is pricing in a meaningful earnings recovery, yet the PEG of 2.67 indicates investors are paying a steep price for the growth implied. Relative to peers CDW and SNX, the multiple appears rich given CNXN's lower return on equity of 3.3% against CDW's 42.6%. Investors should monitor whether reported earnings rebound sustains the forward multiple, as the current valuation leaves limited margin for error if the 2026 growth rebound proves transitory.
Gross Margin Stuck Below Premium Peers
According to the reported quarterly figures, CNXN's gross margin has held in a narrow 18.1% to 19.6% band across ten quarters, well below the 21.4% to 21.7% reported by CDW and NSIT, limiting its pricing power.
Operating margin has oscillated between 2.1% and 5.2%, with the most recent 4.7% reflecting modest operating leverage that has not translated into durable expansion. The stable gross margin alongside variable operating margin suggests SG&A growth has absorbed much of the gross profit gains during recovery periods. Net margin of 3.6% sits near peer levels, which may indicate earnings quality is driven by operations rather than non-operating items, though the thin spread warrants continued scrutiny.
Returns Lag Peers Despite Equity Growth
Based on the supplied ratio history, CNXN's ROIC has ranged from 1.5% to 4.3% over ten quarters, trailing NSIT's 10.3% and SNX's 9.9%, even as shareholder equity expanded steadily.
The low ROIC relative to peers appears driven primarily by the thin net margin rather than asset efficiency, given the asset turnover near 0.6x. Equity growth through retained earnings has not been matched by a corresponding rise in returns, which may indicate capital is accumulating faster than it is being productively redeployed. Investors should monitor whether ROIC can move toward the mid-single digits as operating margins stabilize.
Working Capital Swings Dominate Cash Conversion
As reported in financial statements, CNXN's cash conversion cycle has moved between 47 and 57 days, with quarterly working capital swings such as the -$88.7M in 2026Q2 driving much of the variance in operating cash flow.
The stability of DSO near 80 days alongside shifting DPO, which ranged from 41 to 56 days, suggests supplier financing terms have been the more volatile lever. Asset turnover of roughly 0.55x to 0.60x indicates a distribution model that requires substantial working capital to sustain revenue. The pattern implies that reported cash strength in favorable quarters may reflect collection and payment timing rather than improved underlying efficiency.
Liquidity Strong but Cash Concentration Declining
According to recent SEC filings, CNXN's current ratio of 2.72 and quick ratio of 2.28 in 2026Q3 provide a substantial buffer, though cash has fallen from $196.3M in 2026Q1 to $124.6M.
Current ratio has trended down from a peak near 3.16 in 2025Q1, suggesting the liquidity cushion is gradually thinning even as it remains well above typical distributor levels. Inventory dependence appears limited given the gap between current and quick ratios is modest relative to the overall position. Under severe stress, the liquidity position appears adequate, though the declining cash balance warrants monitoring as working capital reverses.
Headline Balance Sheet May Overstate Durability
Based on reported figures, the near-zero debt-to-equity of 0.01 and strong current ratio may overstate financial strength, since working capital timing has driven much of the period's cash variance.
While leverage is effectively immaterial with total debt of $6.7M, the balance sheet strength is substantially dependent on working capital balances that have reversed sharply between quarters. The most commonly misapplied metric for a distributor like this is the current ratio, which can appear flattering when receivables and payables are timed favorably at period end. A more informative measure would be cash conversion over a rolling multi-quarter window, which appears to show more variability than headline liquidity suggests.