Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

PC Connection, Inc. (CNXN)

Company Dividend Discount ModelIndustry: Technology DistributorsSector: Technology

Valuation Snapshot

Stable Growth$23.31 - $33.70$28.36
Multi-Stage$37.90 - $41.67$39.75
Blended Fair Value$34.05
Current Price$61.99
Upside-45.06%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.49%0.00%0.410.320.351.330.330.330.350.350.410.41
YoY Growth--25.17%-6.01%-74.14%310.57%-0.30%-7.34%0.90%-14.64%0.00%0.61%
Dividend Yield--0.65%0.49%0.77%2.55%0.70%0.79%0.96%1.39%1.37%1.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)83.73
(-) Cash Dividends Paid (M)14.15
(=) Cash Retained (M)69.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.7510.476.28
Cash Retained (M)69.5969.5969.59
(-) Cash Required (M)-16.75-10.47-6.28
(=) Excess Retained (M)52.8459.1263.31
(/) Shares Outstanding (M)25.9325.9325.93
(=) Excess Retained per Share2.042.282.44
LTM Dividend per Share0.550.550.55
(+) Excess Retained per Share2.042.282.44
(=) Adjusted Dividend2.582.832.99
WACC / Discount Rate8.86%8.86%8.86%
Growth Rate-2.00%-1.00%0.00%
Fair Value$23.31$28.36$33.70
Upside / Downside-62.40%-54.25%-45.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)83.7382.8982.0681.2480.4379.6382.02
Payout Ratio16.89%31.52%46.14%60.76%75.38%90.00%92.50%
Projected Dividends (M)14.1526.1237.8649.3660.6371.6675.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.86%8.86%8.86%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)23.7624.0024.24
Year 2 PV (M)31.3131.9532.60
Year 3 PV (M)37.1138.2639.43
Year 4 PV (M)41.4543.1744.94
Year 5 PV (M)44.5546.8749.29
PV of Terminal Value (M)804.40846.29889.90
Equity Value (M)982.571,030.531,080.39
Shares Outstanding (M)25.9325.9325.93
Fair Value$37.90$39.75$41.67
Upside / Downside-38.87%-35.88%-32.78%

High-Yield Dividend Screener

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