PC Connection (CNXN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

PC Connection

NasdaqGS•Technology•Electronics & Computer Distribution

$87.42-1.16(-0.01%)Market open

Market Cap

$2.21B

P/E

21.5x

P/S

0.7x

P/B

2.3x

PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. It operates in three segments: Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions. The company offers IT solutions, including computer systems, data center solutions, and artificial intelligence; a portfolio of managed services and professional services; services related to the design, configuration, and implementation of IT solutions; and cybersecurity, digital workspace, modern infrastructure, multicloud, and supply chain and lifecycle solutions and services. It also distributes accessories, cable and adapters, computer parts, computers, conferencing and AV products, electronics, media and supplies, monitors and projectors, networking products, office equipment, power products, printers and supplies, servers and accessories, software, and storage products; hardware, including devices and peripherals; notebooks/mobility products, desktops, communication products, displays, and sound products; and cloud solutions. The company markets its products and services through its websites. It serves large enterprise customers; small to medium-sized businesses, including small office/home office customers; healthcare, manufacturing, and retail industries; federal, state, and local government; educational institutions, including K-12 and higher education; medium-to-large corporations through outbound inside and field sales, digital and web advertising, and targeted marketing programs to specific market segments. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.

How this company scores

AverageMetricSide Score: 59/100

Strongest: Growth (21/25); weakest: Profitability (11/25).

Profitability11/25

Growth21/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality12/25

Strengths

Rising earningsInterest easily coveredConsistent growthNet cash position

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 21.5x5y range 12.8x – 22.0x

Currently near its 20-quarter median.

P/S · 0.7x5y range 0.4x – 0.7x

Currently above its 20-quarter median.

P/B · 2.3x5y range 1.5x – 2.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $2.21B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.15B
Q. Revenue: $874.31M
TTM EBITDA: $138.84M
TTM Op. Income: $127.81M
Q. Op. Income: $40.98M
TTM Net Income: $102.56M
Q. Net Income: $31.46M
EPS: $1.25
Shares Out.: $25.24M

$3.15B in TTM revenue grew 9.5% YoY, reaching $874.31M last quarter. TTM EBITDA of $138.84M and TTM operating income of $127.81M show growth is flowing through to the bottom line. TTM net income of $102.56M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 3 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.5%
EBITDA Margin: 5.0%
Op. Margin: 4.7%
Net Margin: 3.6%

Op. margin of 4.7% is up 0.4% YoY — cost efficiency is improving. Net margin at 3.6% and gross margin of 18.5% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 10% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 21.5x
P/S Ratio: 0.7x
P/B Ratio: 2.3x

At 21.5x P/E, the stock trades within typical market levels. P/S of 0.7x and P/B of 2.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.52B
Cash: $124.60M
Long-Term Debt: N/A
Book Value: $981.13M
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $9.72M
TTM Free Cash Flow: $-20.58M
FCF Margin: -0.7%
FCF / Net Income: -0.2

TTM FCF of $-20.58M on $9.72M in operating cash flow. The FCF / Net Income ratio of -0.2x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.