PC Connection, Inc. (CNXN) Stock

PC Connection, Inc. (CNXN) is a Consumer Discretionary stock trading at $81.20 (as of 2026-07-24), with a market capitalization of $2.05B and a trailing P/E of 23.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

PC Connection, Inc. sells information technology products and related services through Business Solutions, Enterprise Solutions, and Public Sector Solutions. Its offerings include computer systems, data center and networking equipment, software, and other peripherals, plus services such as design, configuration, and implementation for SMBs, government and educational institutions, and medium-to-large corporate customers.

Understand PC Connection, Inc.: how it makes money

PC Connection sells information technology products and related services (such as computer systems, data center solutions, software, networking, and IT design, configuration, and implementation) and makes money by distributing and implementing these solutions for business, enterprise, and public sector customers through its segments.

Because the company operates with modest profitability (gross margin 18.4% and operating margin 2.8%), sustained profit depends on keeping managed customer accounts (Managed Account Retention Rate 98%) while efficiently moving inventory (Inventory Turns 18), so revenue converts into operating profit rather than being tied up or eroded.

Revenue by segment (latest quarter)
Biz$0.3B
Ent$0.3B
Pub$0.1B

Business quality (Weak): Segment disclosure is clear and includes an operating mix across Business, Enterprise, and Public Sector Solutions. The operating model appears sensitive to working capital and retention signals, given the combination of modest gross and operating margins.

Valuation: At 21× earnings, CNXN trades 12% below the Wholesale average (24×). Note: one-time items can distort reported P/E.

Bull case

  • Retention strength: Managed Account Retention Rate is 98%, which supports repeat business in the managed-account model.
  • Inventory efficiency: Inventory Turns is 18, which can help reduce the risk of inventory becoming stale and support cash flow for a wholesaler.

Bear case

  • Thin operating cushion: Operating margin is 2.8%, so unfavorable changes in gross margin or fulfillment economics could have an outsized impact on profitability.
  • Working capital pressure risk: Days Sales Outstanding is 74 and inventory dynamics matter, so slower collections or less efficient inventory turnover can strain cash even if sales hold up.
Valuation — source: SEC EDGAR (first-party)
Price$81.20
Market Cap$2.05B
P/E Ratio23.4
EV / EBITDA16.1
Price / Book2.22
Price / Sales0.71
FCF Yield6.1%
DCF Value (model)$50.61
DCF Upside vs Price-37.7%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.87B
Net Margin2.9%
Revenue Growth (YoY)3.0%
EPS Growth (YoY)30.8%
FCF Growth (YoY)-122.7%
Financial Health — source: SEC EDGAR
Altman Z-Score6.80 (safe)
Valuation vs Sector & Industry
Stock P/E23.4
Sector P/E (Consumer Discretionary)21.6
Industry P/E (Wholesale)24.8
vs Sector8.6%
vs Industry-5.8%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($129.88M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryWholesale
CEOTimothy J. McGrath
Employees2,580
CountryUS
IPO Date1998-03-03

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CNXN earnings history · CNXN institutional & insider holders · CNXN KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.