Stock analysis · Bull Rankings model

CNXN analysis

PC Connection, Inc.Electronics & Computer Distribution. Scored on the same transparent model behind the daily rankings.

CNXN
PC Connection, Inc. · Electronics & Computer Distribution
FCF$34mC-
Rev+3.2%C+
D/E0.01A
P/E21.3xB+
PEG2.24C
44.2Score
$80.26$2.0B
1Y Target$92.30Model estimate · no analyst coverage
5Y Target$135.13Compound horizon
10Y Target$200.46Long-dated conviction
FCF$34mTTM
C-
FCF $34m — barely positive; fragile cash position
Rev+3.2%TTM YoY
C+
Revenue +3.2% — steady but below market-beating range
D/E0.01
A
D/E 0.01 — least levered decile in Technology (≈10th pctile)
P/E21.3x
B+
P/E 21.3 — below the Technology median (≈40th pctile)
PEG2.24
C
PEG 2.24 — expensive relative to growth rate

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 44.2
Quality62.2
Growth55.5
Value25.0
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
9% off the 12-month high
vs DCF fair value231% aboveest. fair value ~$24
What the price assumes: free cash flow compounding at ~36% a year for the next decade — vs the ~7% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability40% · B+gross profit ÷ total assets (Novy-Marx)
ROIC9.7% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Electronics & Computer Distribution · market cap $2.0b. 9% off the 52-week high of $88.31.
Moat
ROE 10% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere.
Risk
Net margin 3.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $92.30 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $135.13 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $200.46 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

CNXN vs the Top Picks average

PillarCNXNBook avgDiff
Quality0.620.84-0.22
Growth0.560.92-0.36
Value0.250.75-0.50

Averaged across the 30 names in today's Top Picks (mean score 82.9). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-8.7 over 40 daily scores
From 52.9 (Jun 22) → 44.2 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
24
Position size
$1,926
3.9% of portfolio
Stop price
$60.20
25% below $80.26
$ at risk if stopped
$481.56
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

PC Connection, Inc. (CNXN): score, valuation & FAQ

PC Connection, Inc. (CNXN) is a Electronics & Computer Distribution company that scores 44.2 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A) and P/E (B+), while FCF (C-) rate weaker. On valuation, CNXN sits about 231% above our discounted-cash-flow fair value — the current price implies roughly 36% annual free-cash-flow growth over the next decade.

Is CNXN a good stock to buy?

Bull Rankings scores CNXN 44.2 out of 100 on its quality-growth model, which is a below-average reading. That is driven by D/E (A) and P/E (B+). A score is a quantitative screen of PC Connection, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does CNXN score 44.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CNXN earns its highest marks on D/E (A) and P/E (B+), and is held back by FCF (C-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is CNXN overvalued or undervalued?

Based on $80.26, CNXN sits about 231% above our discounted-cash-flow fair value — the current price implies roughly 36% annual free-cash-flow growth over the next decade. It trades at a 21.3x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in CNXN?

Net margin 3.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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