PC Connection Price To Sales vs. Net Income

CNXN Stock  USD 73.79  0.29  0.39%   
Considering PC Connection's profitability and operating efficiency indicators, PC Connection is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess PC Connection's ability to earn profits and add value for shareholders.

PC Connection Price To Sales Ratio

0.65

At this time, PC Connection's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, Days Sales Outstanding is likely to grow to 82.17, while Sales General And Administrative To Revenue is likely to drop 0.1. At this time, PC Connection's Net Income Per Share is very stable compared to the past year. As of the 11th of December 2024, Income Quality is likely to grow to 2.50, while Operating Income is likely to drop about 55 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.10.1795
Way Down
Slightly volatile
Net Profit Margin0.03070.0292
Sufficiently Up
Slightly volatile
Operating Profit Margin0.0390.0371
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.04170.0397
Sufficiently Up
Slightly volatile
Return On Assets0.04770.0701
Way Down
Very volatile
Return On Equity0.120.099
Fairly Up
Slightly volatile
For PC Connection profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PC Connection to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PC Connection utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PC Connection's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PC Connection over time as well as its relative position and ranking within its peers.
  

PC Connection's Revenue Breakdown by Earning Segment

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Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PC Connection. If investors know CNXN will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PC Connection listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.052
Dividend Share
0.38
Earnings Share
3.4
Revenue Per Share
105.964
Quarterly Revenue Growth
0.046
The market value of PC Connection is measured differently than its book value, which is the value of CNXN that is recorded on the company's balance sheet. Investors also form their own opinion of PC Connection's value that differs from its market value or its book value, called intrinsic value, which is PC Connection's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PC Connection's market value can be influenced by many factors that don't directly affect PC Connection's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PC Connection's value and its price as these two are different measures arrived at by different means. Investors typically determine if PC Connection is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PC Connection's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PC Connection Net Income vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PC Connection's current stock value. Our valuation model uses many indicators to compare PC Connection value to that of its competitors to determine the firm's financial worth.
PC Connection is rated third in price to sales category among its peers. It is rated fifth in net income category among its peers making up about  119,282,338  of Net Income per Price To Sales. At this time, PC Connection's Price To Sales Ratio is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PC Connection's earnings, one of the primary drivers of an investment's value.

CNXN Net Income vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

PC Connection

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.70 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

PC Connection

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
83.27 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

CNXN Net Income Comparison

PC Connection is currently under evaluation in net income category among its peers.

PC Connection Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PC Connection, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PC Connection will eventually generate negative long term returns. The profitability progress is the general direction of PC Connection's change in net profit over the period of time. It can combine multiple indicators of PC Connection, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income81 K85 K
Operating Income105.8 M55 M
Income Before Tax113.1 M118.8 M
Total Other Income Expense Net7.3 M7.6 M
Net Income83.3 M87.4 M
Income Tax Expense29.8 M18 M
Net Income Applicable To Common Shares102.6 M107.7 M
Net Income From Continuing Ops78.3 M61.8 M
Non Operating Income Net Other974.7 K591 K
Interest Income193.2 K183.5 K
Net Interest Income70.2 K66.6 K
Change To Netincome10.3 M10.8 M
Net Income Per Share 3.17  3.33 
Income Quality 2.38  2.50 
Net Income Per E B T 0.74  0.56 

CNXN Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PC Connection. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PC Connection position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PC Connection's important profitability drivers and their relationship over time.

Use PC Connection in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PC Connection position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PC Connection will appreciate offsetting losses from the drop in the long position's value.

PC Connection Pair Trading

PC Connection Pair Trading Analysis

The ability to find closely correlated positions to PC Connection could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PC Connection when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PC Connection - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PC Connection to buy it.
The correlation of PC Connection is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PC Connection moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PC Connection moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PC Connection can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PC Connection position

In addition to having PC Connection in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether PC Connection offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of PC Connection's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pc Connection Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pc Connection Stock:
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To learn how to invest in CNXN Stock, please use our How to Invest in PC Connection guide.
You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
To fully project PC Connection's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PC Connection at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PC Connection's income statement, its balance sheet, and the statement of cash flows.
Potential PC Connection investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PC Connection investors may work on each financial statement separately, they are all related. The changes in PC Connection's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PC Connection's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.