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CDW Corporation CDW

CDW Corporation scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$142.17Oct 10, 2026
Business qualityWeak
Next earningsNov 4, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What CDW Corporation does

    CDW distributes technology hardware, software, and managed IT solutions to business, government, education, and healthcare customers. The firm acts as an outsourced purchasing department, helping clients navigate complex IT procurement.

  2. What it does best

    CDW secures enterprise IT hardware budgets through deep vendor relationships and logistics scale, printing a 21.4% gross margin that outpaces peers like SNX at 7.1%.

  3. The main risk

    Margin compression threatens the business as corporate IT hardware spending cycles stall, leaving bottom-line recovery dependent on second-half execution.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Gross margin of 21.4% and operating margin of 7.1% drive an FCF margin of 3.6%, keeping overall profitability modest compared to sector peers.

MoatFair

Scale and account control lock in enterprise buyers, reflected in a top-quartile ROE of 42.6% that rivals struggle to replicate quickly.

GrowthSlow

Revenue grew 6.8% to $23.5B, showing a slight recovery from prior-year stagnation but lagging behind peers like AVT's 24.5% growth rate.

Financial healthWeak

Net debt sits at $5.0B with a debt-to-equity ratio of 2.2, while free cash flow of $860M funds $834M in buybacks. The balance sheet is softening under heavy leverage.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $3.7M outside pre-planned sales.

Our sealed record on CDW

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is CDW a good business?

CDW Corporation scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.

Are insiders buying CDW?

In the last 90 days of SEC Form 4 filings: 1 sold $3.7M outside pre-planned sales.

When does CDW report earnings?

Nov 4, 2026, before the open.

For members

See CDW today

  • Today's verdict on CDW, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “CDW Corporation (CDW)”, https://cluenex.com/stocks/cdw/, data as of Oct 10, 2026.