Value Sense
CNXN
PC Connection, Inc. (CNXN)
Last Price$62.9(0.8%)
Market Cap$1,663.7M
LTM Rule of 40 (EBIT margin)
1.8%
5Y avg
4.2%
Technology Distributors industry median
(9.1%)
Stock quality & Intrinsic value
6/10
0.5% undervalued
CNXN
is 48.5% undervalued
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PC Connection, Inc. Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
CNXN
Technology
Crunching data... Almost there!
Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Dec'22Dec'23Dec'24
Rule of 40 (EBIT margin)
7.3%
14.7%
11.2%
(0.8%)
(10.5%)
27.7%
8.8%
5.2%
5.6%
13.8%
7.5%
7.6%
10.8%
(4.1%)
8.4%
(5.4%)
15.0%
11.9%
(5.1%)
1.8%
CNXN
Key metrics and insights to make informed decisions.
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PC Connection, Inc. (CNXN) Rule of 40 (EBIT margin) comparison analysis

General

LTM Rule of 40 (EBIT margin)

OTHER METRICS

Company name

Revenue growth

EPS growth

Net Income margin

PC Connection, Inc. logo
PC Connection, Inc.CNXN
1.8%
(1.7%)
4.4%
3.1%
Median Peer Set
(10.9%)
(8.0%)
(4.7%)
1.8%
Climb Global Solutions, Inc. logo
Climb Global Solutions, Inc.CLMB
38.4%
32.3%
52.7%
4.0%
TD SYNNEX Corporation logo
TD SYNNEX CorporationSNX
3.7%
1.6%
19.9%
1.2%
Insight Enterprises, Inc. logo
Insight Enterprises, Inc.NSIT
(0.9%)
(5.2%)
(9.4%)
2.9%
Snap One Holdings Corp. logo
Snap One Holdings Corp.SNPO
(1.1%)
(5.6%)
133.3%
(2.0%)
Avnet, Inc. logo
Avnet, Inc.AVT
(9.1%)
(10.5%)
(34.2%)
2.1%
Arrow Electronics, Inc. logo
Arrow Electronics, Inc.ARW
(12.6%)
(15.7%)
(54.1%)
1.4%
ScanSource, Inc. logo
ScanSource, Inc.SCSC
(13.3%)
(13.9%)
(11.4%)
2.4%
ICZOOM Group Inc. logo
ICZOOM Group Inc.IZM
(31.3%)
(17.0%)
N/A
(1.3%)
Taitron Components Incorporated logo
Taitron Components IncorporatedTAIT
(36.9%)
(27.5%)
(42.6%)
30.2%
ADDvantage Technologies Group, Inc. logo
ADDvantage Technologies Group, Inc.AEY
(54.1%)
56.1%
N/A
0.5%

CNXN key stats

USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Dec'22Dec'23Dec'24
Revenue
% growth
1,444.3
6.7%
1,635.7
13.2%
1,785.4
9.2%
1,753.7
(1.8%)
1,569.7
(10.5%)
1,974.2
25.8%
2,103.3
6.5%
2,158.9
2.6%
2,221.6
2.9%
2,463.3
10.9%
2,574.0
4.5%
2,692.6
4.6%
2,911.9
8.1%
2,699.5
(7.3%)
2,820.0
4.5%
2,590.3
(8.1%)
2,892.6
11.7%
3,125.0
8.0%
2,850.6
(8.8%)
2,802.1
(1.7%)
Cost of Goods Sold (COGS)1,280.71,435.41,566.41,538.81,384.91,744.31,838.41,876.81,928.62,140.02,233.02,321.42,529.82,288.42,368.72,171.52,428.02,598.82,338.92,282.3
Gross Profit
% margin
163.6
11.3%
200.3
12.2%
219.0
12.3%
214.8
12.3%
184.8
11.8%
229.9
11.6%
264.9
12.6%
282.1
13.1%
293.0
13.2%
323.4
13.1%
341.0
13.2%
371.2
13.8%
382.1
13.1%
411.1
15.2%
451.3
16.0%
418.8
16.2%
464.6
16.1%
526.2
16.8%
511.7
18.0%
519.8
18.6%
Operating Expenses154.1176.3182.2197.0172.7191.2217.3226.3233.6251.9262.5287.2300.9324.4338.6345.7368.1405.6405.9422.7
Research & Development Expenses (R&D)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Selling, General & Administrative Expenses (SG&A)152.0173.9181.6186.7172.7191.2217.3226.3233.6251.9261.4286.4300.9324.4338.6345.7368.1405.6405.9401.7
Operating Income
% margin
9.5
0.7%
23.9
1.5%
36.8
2.1%
17.9
1.0%
(0.7)
(0.0%)
38.7
2.0%
47.6
2.3%
54.6
2.5%
59.4
2.7%
71.5
2.9%
78.6
3.1%
80.5
3.0%
77.5
2.7%
85.7
3.2%
112.0
4.0%
72.1
2.8%
96.5
3.3%
120.6
3.9%
105.8
3.7%
97.1
3.5%
Interest Income0.00.00.00.00.00.00.00.00.00.00.00.00.13.10.80.20.00.00.00.0
Interest Expense0.00.00.00.70.50.50.40.20.10.10.10.10.00.10.10.10.00.00.00.0
Pre-tax Income8.122.236.618.0(0.7)38.447.454.559.271.478.580.577.688.7112.773.296.5121.6113.1117.5
Income Tax
% effective tax rate
3.7
45.3%
8.5
38.0%
13.6
37.2%
7.6
42.4%
0.5
(80.5%)
15.4
40.2%
18.6
39.3%
21.4
39.3%
23.6
39.8%
28.7
40.2%
31.6
40.3%
32.3
40.2%
22.8
29.3%
24.1
27.1%
30.6
27.1%
17.4
23.8%
26.6
27.6%
32.4
26.7%
29.8
26.4%
30.4
25.9%
Net Income
% margin
4.4
0.3%
13.8
0.8%
23.0
1.3%
10.4
0.6%
(1.2)
(0.1%)
23.0
1.2%
28.8
1.4%
33.1
1.5%
35.7
1.6%
42.7
1.7%
46.8
1.8%
48.1
1.8%
54.9
1.9%
64.6
2.4%
82.1
2.9%
55.8
2.2%
69.9
2.4%
89.2
2.9%
83.3
2.9%
87.1
3.1%
EPS0.180.540.860.39(0.05)0.851.081.251.371.631.771.812.052.423.122.132.673.403.173.31
Diluted EPS0.180.540.850.39(0.05)0.851.071.241.351.611.761.802.042.413.102.122.653.373.153.29
EBITDA
% margin
18.7
1.3%
33.3
2.0%
43.6
2.4%
25.7
1.5%
6.6
0.4%
44.3
2.2%
53.8
2.6%
61.6
2.9%
66.5
3.0%
79.5
3.2%
87.5
3.4%
91.0
3.4%
93.0
3.2%
102.9
3.8%
126.0
4.5%
86.7
3.3%
108.7
3.8%
132.5
4.2%
118.2
4.1%
97.1
3.5%

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FAQ

1) What is PC Connection, Inc.'s Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 1.8%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for PC Connection, Inc. have been 5.7% over the past three years, and 4.4% over the past five years.

2) Is PC Connection, Inc.'s Rule of 40 (EBIT margin) Good?

As of today, PC Connection, Inc.'s Rule of 40 (EBIT margin) is 1.8%, which is higher than industry median of (9.1%). It indicates that PC Connection, Inc.'s Rule of 40 (EBIT margin) is Good.

3) How does PC Connection, Inc.'s Rule of 40 (EBIT margin) compare to its peers?

As of today, PC Connection, Inc.'s Rule of 40 (EBIT margin) is 1.8%, which is higher than peer median of (10.9%). The list of peers includes CLMB, SNX, NSIT, SNPO, AVT, ARW, SCSC, IZM, TAIT, AEY.