PC Connection, Inc. (CNXN) AI Stock Analysis

PC Connection, Inc., founded in 1982 and based in Merrimack, New Hampshire, provides information technology solutions through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. The company supplies IT products including computer systems, data center solutions, software, peripheral equipment, and networking communications. It also offers services covering the design, configuration, and implementation of customized IT environments. PC Connection markets its offerings via online platforms such as connection.com and macconnection.com, serving small to medium-sized businesses, government bodies, educational institutions, and corporate clients through outbound telemarketing, field sales, and digital campaigns.

From FY2020 to FY2025, PC Connection generated a five-year revenue CAGR of 2.1%. Revenue reached $3.12B in FY2022 before falling 8.8% to $2.85B in FY2023 and 1.7% to $2.80B in FY2024, followed by a 2.5% increase to $2.87B in FY2025. Gross margin expanded from 16.1% in FY2021 to 18.8% in FY2025, with net income totaling $83.7M and EPS reaching $3.45 in FY2025. Performance improved in the latest quarter ending June 30, 2026, delivering 12.4% year-over-year revenue growth and 35.1% earnings growth, bringing trailing twelve-month revenue to $2.99B and EPS to $3.78.

As of June 30, 2026, PC Connection held $340.7M in cash and short-term investments against total debt of $7.5M, establishing a net cash position of $333.1M. Liquidity remains solid with a current ratio of 2.88 and a debt-to-equity ratio of 0.01. During FY2025, operating cash flow reached $65.4M and free cash flow was $58.0M. The company directed capital toward $7.4M in capital expenditures, $76.3M in share buybacks, and $15.3M in dividend payments.

PC Connection trades at a trailing P/E of 23.6x, below the 28.1x median of its US-listed Technology peers, while its forward P/E of 19.5x compares to the peer median of 18.8x. Its EV/EBITDA multiple of 13.5x and price-to-sales ratio of 0.8x both sit below the peer medians of 16.6x and 2.8x, respectively. The stock's one-year return of 48.5% exceeded the 16.8% gain of the S&P 500. Over five years, the stock returned 113.9%, compared to 83.0% for the S&P 500.

PC Connection pays an annual forward dividend of $0.80 per share, which equates to a dividend yield of 0.90%. The dividend is paid quarterly and is supported by a payout ratio of 18.9%. The company has maintained consecutive dividend payments for 6 years, with the last ex-dividend date occurring on August 11, 2026.

PC Connection currently has 1 Hold rating from analysts, with 0 Buy and 0 Sell ratings. The mean price target of $83.00 sits 7.1% below the last closing price of $89.32. For the fiscal year ending December 31, 2026, consensus estimates anticipate EPS of $4.17 on revenue of $3.11B. PC Connection has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings release date is October 28, 2026.

This page is an AI-written research summary of PC Connection, Inc. (CNXN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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