PC Connection, Inc.

Valuation Analysis

About the Company

PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. It operates in three segments: Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions. The company offers IT solutions, including computer systems, data center solutions, and artificial intelligence; a portfolio of managed services and professional services; services related to the design, configuration, and implementation of IT solutions; and cybersecurity, digital workspace, modern infrastructure, multicloud, and supply chain and lifecycle solutions and services. It also distributes accessories, cable and adapters, computer parts, computers, conferencing and AV products, electronics, media and supplies, monitors and project

PC Connection, Inc. Stock at a Glance

PC Connection, Inc. (CNXN) is currently trading at $72.86 with a market capitalization of $1.8B. The trailing P/E ratio stands at 21.18x, with a forward P/E of 17.2x. The 52-week range spans from $54.97 to $75.00; the current price is 2.9% below the yearly high. Year-over-year revenue growth stands at +3.0%. The net profit margin stands at 3.02%.

💰 Dividend

PC Connection, Inc. pays an annual dividend of $0.80 per share, representing a yield of 1.1%. The payout ratio stands at 18.9%.

📊 Analyst Rating

1 analysts rate PC Connection, Inc. (CNXN) on consensus: None. The average price target is $76.00, implying +4.31% from the current price. Analyst price targets range from $76.00 to $76.00.

PC Connection, Inc.: The Investment Case in Detail

PC Connection, Inc. (CNXN) operates in the Technology — specifically Electronics & Computer Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 33.3% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base.

The Bear Case

Revenue growth has slowed to just 3%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 3.02%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

What to Watch Next

• The forward P/E of 17.2x is meaningfully below the trailing 21.18x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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