CNXNPC Connection, Inc.
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.5×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CNXN?
PC Connection, Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 6.1 points above what the capital costs: growth creates value
- Operating margin
- 3.9%
Operating margin · Electronics & Computer Distribution median 3.4% · 12 months to Q2 2026
- Cash conversion
- 0.49×
Cash conversion · 0.72× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −0.71%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 2.8% |
| FY2021 | 3.3% |
| FY2022 | 3.9% |
| FY2023 | 3.6% |
| FY2024 | 3.5% |
| FY2025 | 3.5% |
Details›
- Gross margin12 months to Q2 2026
- 19%
- Operating margin12 months to Q2 2026
- 3.9%
- Net margin12 months to Q2 2026
- 3.2%
- Free cash flow margin
- 1.1%
- Revenue, trailing twelve months
- $2.99B
- Free cash flow, trailing twelve months
- $34M
- Net income, trailing twelve months
- $96M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from CNXN and who it buys from, as the companies report it.
None disclosed.
- SNXTD SYNNEX Corporation25%
Share of purchases · FY2025 10-K
- INGMIngram Micro Holding Corporation21%
Share of purchases · FY2025 10-K
- MSFTMicrosoft Corporation13%
Share of purchases · FY2025 10-K
- HPQHP Inc.13%
Share of purchases · FY2025 10-K
- DELLDell Technologies12%
Share of purchases · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; CNXN’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Electronics & Computer Distribution
Ranks #2 of 7 by RyuScore