# PC Connection Inc. (CNXN) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Electronic Equipment, Instruments & Components. Price $84.35, market value $2.1 billion.

## Valuation
- **P/E (trailing): 22.3×** (5-yr avg 17.7×, 3-yr avg 19.7×). PC Connection Inc. trades at 22.3× trailing earnings, well above its own five-year average of 17.7×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 18.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 1.6%** (5-yr avg 8.0%). Free cash flow equals 1.6% of the market value, below its five-year average of 8.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 4.5%**. The inverse of the P/E: 4.5% of the price is earned each year.

## Profitability
- **Gross margin: 18.9%**. PC Connection Inc. keeps 18.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.9%**. 3.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.9%**. 2.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.2%**. 9.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on assets: 7.1%**. Each dollar of assets produces 7.1% of profit.

## Growth
- **Revenue growth (1 yr): 2.5%** (3-yr -2.8%/yr, 5-yr 2.1%/yr). Revenue grew 2.5% over the last year, against 2.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -0.6%** (3-yr -1.0%/yr, 5-yr 9.1%/yr). Earnings per share fell 0.6%, roughly in step with revenue.

## Financial health
- **Current ratio: 2.90** (quick 2.90). Current assets cover the next year's liabilities 2.90 times.
- **Altman Z-score: 6.92**. A Z-score of 6.92 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.95%** ($0.70 per share, trailing). PC Connection Inc. yields 0.95%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 18%** (52% of free cash flow). 18% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.

## Price and momentum
- **Total return (1 yr): 28.2%** (YTD 46.9%, 3-mo 16.9%). The shares are up 28.2% over twelve months including dividends.
- **From 52-week high: -4.5%** (53.4% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 65**. An RSI of 65 is neutral.
- **Beta (1 yr): 0.67** (volatility 26%). Beta of 0.67 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CNXN · Page: https://foliofundamentals.com/stocks/cnxn

Not investment advice.