Forensic Analysis · Durable-Goods Wholesale · as of Nov 8, 2026
Pc Connection Inc (CNXN)
A forensic read on Pc Connection Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
8.7
Distress distance
Clean
Earnings quality
2
Forensic signals
9.2%
ROE
2.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Pc Connection Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 8.7, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
158% of FCF
FY2025
Shareholder returns.Returned $92M to shareholders (buybacks + dividends) in FY2025 — 158% of free cash flow. That is $34M (58%) more than free cash flow covered, and more than operating cash flow as well. It came out of the balance sheet's own liquid holdings, not new debt: cash and short-term investments fell $36M over FY2025. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $9M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 174%.
9.8%
FY2025
Return on invested capital.Return on invested capital is 9.8% in the latest fiscal year and steady across FY2023–FY2025, inside a 0.8-point range. After-tax operating profit was $76M in FY2023 and $73M in FY2025, with operating income at 3.6% of revenue in FY2023, 3.5% in FY2024 and 3.5% in FY2025. The capital base behind it went from $715M in FY2023 to $744M in FY2025 (+4%), while the revenue it carried went from $2.9B to $2.9B. $239M of the $744M base at FY2025 is short-term investments (32.1%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns.
Key fundamentals
Latest Revenue$2.87B
Revenue Growth YoY+2.5%
Revenue CAGR (2yr)+0.4%
Net Margin2.9%
Free Cash Flow$58.0M
Return on Equity9.2%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Pc Connection Inc's actual 10-K/10-Q/8-K filings?