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

$87.12+1.92(0.02%)Pre-market

Market Cap

$2.18B

P/E

22.8x

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

GoodMetricSide Score: 62/100

Strongest: Growth (17/25); weakest: Cash & Earnings Quality (14/25).

Profitability16/25

Growth17/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality14/25

Strengths

Interest easily coveredCash-backed earningsConsistent growthNet cash position

Valuation vs. 5-year range

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

P/E · 22.8x5y range 12.8x – 22.8x

Currently above 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

Cash Burn

Watch

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

Price & Volume

Market Cap $2.18B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $2.99B
Q. Revenue: $854.00M
TTM EBITDA: $128.37M
TTM Op. Income: $117.10M
Q. Op. Income: $43.01M
TTM Net Income: $95.84M
Q. Net Income: $33.17M
EPS: $1.31
Shares Out.: $25.23M

$2.99B in TTM revenue grew 3.2% YoY, reaching $854.00M last quarter. TTM EBITDA of $128.37M and TTM operating income of $117.10M show growth is flowing through to the bottom line. TTM net income of $95.84M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.4%
EBITDA Margin: 5.4%
Op. Margin: 5.0%
Net Margin: 3.9%

Op. margin of 5.0% is up 1.0% YoY — cost efficiency is improving. Net margin at 3.9% and gross margin of 18.4% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 24% — an improving trend.

Price Ratios

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

P/E Ratio: 22.8x
P/S Ratio: 0.7x
P/B Ratio: 2.3x

At 22.8x 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. Over the past year, P/E is up 17% — a weakening trend.

Assets & Liabilities

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

Total Assets: $1.43B
Cash: $123.72M
Long-Term Debt: N/A
Book Value: $952.65M
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: $-63.81M
TTM Free Cash Flow: $34.05M
FCF Margin: 1.1%
FCF / Net Income: 0.4

TTM FCF of $34.05M on $-63.81M in operating cash flow. The FCF / Net Income ratio of 0.4x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is down 27% — a weakening trend.