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Upturn AI SWOT - About
CNXN 
PC Connection Inc (CNXN)
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Upturn Advisory Summary
04/01/2025: CNXN (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -6.15% | Avg. Invested days 50 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.63B USD | Price to earnings Ratio 19.18 | 1Y Target Price 76 |
Price to earnings Ratio 19.18 | 1Y Target Price 76 | ||
Volume (30-day avg) 160064 | Beta 0.62 | 52 Weeks Range 57.08 - 76.91 | Updated Date 04/2/2025 |
52 Weeks Range 57.08 - 76.91 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.95% | Basic EPS (TTM) 3.29 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.11% | Operating Margin (TTM) 3.19% |
Management Effectiveness
Return on Assets (TTM) 4.9% | Return on Equity (TTM) 9.94% |
Valuation
Trailing PE 19.18 | Forward PE 18.02 | Enterprise Value 1193425644 | Price to Sales(TTM) 0.58 |
Enterprise Value 1193425644 | Price to Sales(TTM) 0.58 | ||
Enterprise Value to Revenue 0.43 | Enterprise Value to EBITDA 10.8 | Shares Outstanding 25874500 | Shares Floating 11878478 |
Shares Outstanding 25874500 | Shares Floating 11878478 | ||
Percent Insiders 55.82 | Percent Institutions 45.06 |
Analyst Ratings
Rating 3 | Target Price 76 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
PC Connection Inc
Company Overview
History and Background
PC Connection, Inc. was founded in 1982. It initially focused on direct marketing of computer products and services. Over time, it expanded its offerings and customer base, becoming a leading provider of IT solutions.
Core Business Areas
- Business Solutions: Provides comprehensive IT solutions, including hardware, software, and cloud services, to businesses of all sizes.
- MoreDirect: Focuses on serving larger enterprise customers with complex IT needs, offering specialized support and solutions.
- GovConnection: Caters to federal, state, and local government agencies, providing IT solutions that meet specific government requirements.
- Connection Public Sector Solutions (CPSS): Focuses on serving State and Local Governments, and Educational instutions
Leadership and Structure
Tim McGrath is the President and CEO. The company has a traditional corporate structure with various departments responsible for sales, marketing, operations, and finance.
Top Products and Market Share
Key Offerings
- Laptops and Desktops: Offers a wide range of laptops and desktops from leading manufacturers like HP, Dell, and Lenovo. Competitors include CDW, Insight Enterprises, and SHI International. Market share data not readily available at product level.
- Software: Provides various software solutions, including operating systems, productivity suites, security software, and virtualization tools. Competitors include SHI International and Insight Enterprises. Market share data not readily available at product level.
- Networking Equipment: Sells networking equipment such as routers, switches, and firewalls from brands like Cisco, Juniper, and Arista. Competitors include CDW and SHI International. Market share data not readily available at product level.
- Cloud Solutions: Offers cloud-based services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Competitors include Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Market share data not readily available at product level.
Market Dynamics
Industry Overview
The IT solutions industry is highly competitive and constantly evolving, driven by technological advancements, changing customer needs, and increasing demand for cloud-based services.
Positioning
PC Connection Inc. positions itself as a trusted IT solutions provider with a focus on customer service and expertise. It aims to differentiate itself through its comprehensive offerings and tailored solutions.
Total Addressable Market (TAM)
The total addressable market for IT solutions is estimated to be in the trillions of dollars globally. PC Connection Inc. is positioned to capture a portion of this market through its various business segments.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Extensive product portfolio
- Experienced management team
- Diversified customer base
- Strong government contracts through GovConnection
Weaknesses
- Relatively small size compared to larger competitors
- Dependence on suppliers for product availability
- Susceptibility to economic downturns
- Lower profit margins relative to software and service companies
Opportunities
- Expanding cloud-based services
- Acquiring smaller competitors
- Growing demand for cybersecurity solutions
- Increased adoption of remote work technologies
Threats
- Intense competition
- Rapid technological changes
- Cybersecurity threats
- Economic recessions
Competitors and Market Share
Key Competitors
- CDW
- Insight Enterprises
- SHI International
- ePlus inc
Competitive Landscape
PC Connection Inc. faces intense competition from larger, more established players. Its strengths lie in its customer service, expertise, and government contracts. Its weaknesses include its relatively small size and dependence on suppliers.
Major Acquisitions
ValCom
- Year: 2007
- Acquisition Price (USD millions): 51
- Strategic Rationale: Expanded geographic presence and customer base.
GlobalServe, Inc.
- Year: 2011
- Acquisition Price (USD millions): 28
- Strategic Rationale: Enhancement of its technical knowledge and service skills to expand into more specialized high-value services.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends must be sourced directly from the companies investor relations. Historical growth trends can be identified and discussed when available.
Future Projections: Future growth projections are based on analyst estimates and depend on market conditions and company performance. Projections must be sourced directly from a reputable financial data source.
Recent Initiatives: Recent strategic initiatives include expanding cloud offerings, acquiring smaller companies, and investing in new technologies.
Summary
PC Connection Inc. is a solid IT solutions provider with a strong brand and diversified customer base, particularly within the government sector. Its smaller size relative to major competitors represents a disadvantage. Expanding cloud services and strategic acquisitions present growth opportunities. They need to be aware of cyber threats and rapid technological changes to stay competitive.
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Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Third-party Market Research Reports
- Financial News Outlets
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About PC Connection Inc
Exchange NASDAQ | Headquaters Merrimack, NH, United States | ||
IPO Launch date 1998-03-04 | President & CEO Mr. Timothy J. McGrath | ||
Sector Technology | Industry Electronics & Computer Distribution | Full time employees 2580 | Website https://www.connection.com |
Full time employees 2580 | Website https://www.connection.com | ||
PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. The company operates through three segments, Enterprise Solutions, Business Solutions, and Public Sector Solutions. It offers IT solutions, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories; and portfolio of managed services and professional services, as well as provides services related to design, configuration, and implementation of IT solutions. The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, cnxnhelix.com, and macconnection.com. It serves small to medium-sized businesses that include small office/home office customers; federal, state, and local government and educational institutions; enterprise customers; medium-to-large corporations through outbound inside and field sales; digital, web, and print media advertising; and targeted marketing program to specific customer populations. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
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