CDW Corp (CDW) Stock Analysis
Verdict: WATCH (do not buy)
AI-driven hardware volume boosts top-line growth, but gross margin erosion to 20.1% and $6.33B debt limit EPS leverage.
Investment score: 57/100
Analysis as of
Is CDW Corp stock worth reviewing? AI model thesis
The AI model rates CDW as a HOLD. Top-line expansion driven by AI infrastructure spending is offset by gross margin pressure and high debt service requirements ($6.33B total debt).
7-factor investment score
- Valuation: 60/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 62/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 68/100 (weight 10%)
- Risk-Adjusted Return: 58/100 (weight 15%)
CDW Corp opportunities and risks
What speaks for CDW
- Lovelytics acquisition expands high-margin AI/data practice
What speaks against CDW
- Gross margin erosion from hardware-heavy product mix
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CDW | 15.5x | 0.7x | 12.1x | 21.4% | 4.6% | 6.7% |
| SNX | 15.6x | 0.3x | 10.5x | 6.8% | 1.8% | -3.9% |
| ARW | 14.6x | 0.3x | 10.7x | 11.2% | 2.3% | 7.6% |
| AVT | 25.2x | 0.3x | 13.7x | 10.4% | 1.2% | -4.2% |
| INGM | 14.6x | 0.1x | 7.4x | 6.6% | 0.8% | -3.7% |
| NSIT | 22.7x | 0.5x | 12.8x | 22.1% | 2.5% | 9.0% |
| Peer median | 15.6x | 0.3x | 10.7x | 10.4% | 1.8% | -3.7% |
Frequently asked questions about CDW Corp (CDW)
Is CDW stock a good investment?
The cached TradeMates AI model rates CDW Corp as WATCH (do not buy) with an investment score of 57/100. The AI model rates CDW as a HOLD. Top-line expansion driven by AI infrastructure spending is offset by gross margin pressure and high debt service requirements ($6.33B total debt). This is algorithmic model output, not personal investment advice.
Is CDW stock a buy?
The TradeMates model verdict for CDW is WATCH (do not buy) with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.