Stock fact sheet · data as of
PC Connection, Inc. (CNXN): fair value, margin of safety and Wheel Score
Ticker symbol CNXN · Technology · Technology Distributors · United States · Speculative
Is CNXN undervalued?
At 87.81 (close of 5 Nov 2026), CNXN trades 98% over the GLS average fair value of 44.43, with 1 of 8 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between DDM (11.04) and Graham Growth (92.98). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CNXN under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for CNXN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 71.09 | -19% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 59.61 | -32% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 92.98 | +6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 30.28 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 30.20 | -66% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 15.09 | -83% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 11.04 | -87% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 45.15 | -49% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 30.90 | -65% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
PC Connection, Inc. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability CNXN scores 6.4/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are moderate - ROIC 9.2%, ROE 9.2%, ROA 6.2% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is 0.85% with a payout ratio of 18% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Large Account 47%, Small and Medium Sized Businesses 38%, Public Sector 16% (quarter Q3 FY2026).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 9.2% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 9.2% |
| Debt / equity | 0.00 | ROA | 6.2% |
| Free-cash-flow yield | -0.9% | Payout ratio | 18% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 30: Weak
With a Wheel Score of 30 PC Connection, Inc. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 3, below fair value - trades 98% above our fair value; and filter 4, financially healthy - Piotroski 3/9 (under 6); Value (weak) is its weakest part.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 1,891 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 188k shares a day on a market cap of $2.2B, with a beta of 0.82; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Fails | trades 98% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 98% above fair value | |
| Premium | Good | implied volatility 31% | |
| Moat | Good | moat 6.4/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Weak | 125 contracts a day, 1,891 open interest | |
| Stability | Fair | beta 0.82, $2.2B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Feb 2027, 90 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 10 Nov 2026 (0.2000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Technology Distributors
The 10 companies below are the closest to PC Connection, Inc. by market cap within the Technology Distributors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SCSC ScanSource, Inc. | 56.98 | 116.91 | +51% | 51Fair | $1.2B |
| CLMB Climb Global Solutions, Inc. | 43.05 | 29,153.76 | +100% | 36No options | $803M |
| EACO EACO Corporation | 150.00 | 228.95 | +34% | 37No options | $729M |
| AVT Avnet, Inc. | 85.68 | 84.75 | -1% | 34Weak | $7.0B |
| ARW Arrow Electronics, Inc. | 202.63 | 329.28 | +38% | 53Fair | $10.3B |
| SNX TD Synnex Corp | 230.39 | 358.53 | +36% | 49Weak | $18.4B |
| SPRS Surge Components, Inc. | 3.15 | 3.19 | +1% | 19No options | $18M |
| TAIT Taitron Components Incorporated | 1.98 | 3.08 | +36% | 28No options | $10M |
| PGNT Paragon Technologies, Inc. | 4.05 | 39.69 | +90% | 31No options | $7M |
| IZM ICZOOM Group Inc. | 0.7301 | 19.25 | +96% | 34No options | $1M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CNXN
Is CNXN undervalued right now?
No: at 87.81 the stock trades 98% above the GLS average fair value of 44.43 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of CNXN and what does it mean?
CNXN scores 30 out of 100 (Weak) - it fails Wheel Trade Filters 2, 3, 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for CNXN?
44.43 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PC Connection, Inc. report earnings next?
The next earnings report is due on 3 Feb 2027, 90 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does CNXN have listed options, and how liquid are they?
Yes. The nightly snapshot found 56 listed contracts with 1,891 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.