TD SYNNEX CORP (SNX) Stock Fundamental Analysis
USA - NYSE:SNX - US87162W1009 - Common Stock
154.96 USD
+1.54 (+1%)
154.96 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SNX. SNX was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. There are concerns on the financial health of SNX while its profitability can be described as average. SNX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SNX had positive earnings in the past year.
In the past year SNX had a positive cash flow from operations.
In the past 5 years SNX has always been profitable.
SNX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.42%, SNX is in line with its industry, outperforming 58.54% of the companies in the same industry.
With a decent Return On Equity value of 9.08%, SNX is doing good in the industry, outperforming 70.73% of the companies in the same industry.
SNX has a better Return On Invested Capital (8.36%) than 78.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNX is in line with the industry average of 9.33%.
The last Return On Invested Capital (8.36%) for SNX is above the 3 year average (7.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 9.08% | ||
| ROIC | 8.36% |
ROA(3y)2.18%
ROA(5y)2.37%
ROE(3y)8.05%
ROE(5y)8.23%
ROIC(3y)7.79%
ROIC(5y)7.32%
1.3 Margins
SNX's Profit Margin of 1.26% is in line compared to the rest of the industry. SNX outperforms 52.85% of its industry peers.
SNX's Profit Margin has declined in the last couple of years.
SNX has a Operating Margin (2.21%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SNX has declined.
The Gross Margin of SNX (6.91%) is worse than 86.18% of its industry peers.
SNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.21% | ||
| PM (TTM) | 1.26% | ||
| GM | 6.91% |
OM growth 3Y-2.36%
OM growth 5Y-10.29%
PM growth 3Y-1.88%
PM growth 5Y-10.96%
GM growth 3Y4.45%
GM growth 5Y-11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNX is destroying value.
The number of shares outstanding for SNX has been reduced compared to 1 year ago.
SNX has more shares outstanding than it did 5 years ago.
SNX has a better debt/assets ratio than last year.
2.2 Solvency
SNX has an Altman-Z score of 2.67. This is not the best score and indicates that SNX is in the grey zone with still only limited risk for bankruptcy at the moment.
SNX has a Altman-Z score of 2.67. This is in the lower half of the industry: SNX underperforms 65.04% of its industry peers.
The Debt to FCF ratio of SNX is 8.83, which is on the high side as it means it would take SNX, 8.83 years of fcf income to pay off all of its debts.
SNX's Debt to FCF ratio of 8.83 is in line compared to the rest of the industry. SNX outperforms 52.85% of its industry peers.
SNX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, SNX is doing worse than 61.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.87
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.20 indicates that SNX should not have too much problems paying its short term obligations.
SNX has a Current ratio of 1.20. This is amonst the worse of the industry: SNX underperforms 86.18% of its industry peers.
SNX has a Quick Ratio of 1.20. This is a bad value and indicates that SNX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SNX (0.71) is worse than 91.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.40% over the past year.
SNX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.52% yearly.
SNX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.94%.
The Revenue has been growing by 19.73% on average over the past years. This is quite good.
EPS 1Y (TTM)6.4%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%25.17%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%6.58%
3.2 Future
The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
SNX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.38% yearly.
EPS Next Y13.3%
EPS Next 2Y12.29%
EPS Next 3Y12.34%
EPS Next 5YN/A
Revenue Next Year7.32%
Revenue Next 2Y5.9%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.44, SNX is valued correctly.
Based on the Price/Earnings ratio, SNX is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.89. SNX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.53, the valuation of SNX can be described as reasonable.
Based on the Price/Forward Earnings ratio, SNX is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. SNX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SNX is valued a bit cheaper than 74.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.28 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
SNX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SNX's earnings are expected to grow with 12.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y12.29%
EPS Next 3Y12.34%
5. Dividend
5.1 Amount
SNX has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, SNX pays a better dividend. On top of this SNX pays more dividend than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of SNX has a limited annual growth rate of 1.30%.
SNX has been paying a dividend for at least 10 years, so it has a reliable track record.
SNX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.3%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.83% of the earnings are spent on dividend by SNX. This is a low number and sustainable payout ratio.
SNX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.83%
EPS Next 2Y12.29%
EPS Next 3Y12.34%
154.96
+1.54 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.62%
Inst Owner Change-0.91%
Ins Owners0.73%
Ins Owner Change0.51%
Market Cap12.62B
Revenue(TTM)60.97B
Net Income(TTM)767.18M
Analysts82.35
Price Target170.8 (10.22%)
Short Float %3%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.6
Dividend Growth(5Y)1.3%
DP18.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.7%
Min EPS beat(2)9.03%
Max EPS beat(2)16.37%
EPS beat(4)3
Avg EPS beat(4)5.29%
Min EPS beat(4)-4.6%
Max EPS beat(4)16.37%
EPS beat(8)6
Avg EPS beat(8)4.76%
EPS beat(12)9
Avg EPS beat(12)5.21%
EPS beat(16)12
Avg EPS beat(16)4.97%
Revenue beat(2)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)2.55%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)1.57%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)3.39%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)7.28%
PT rev (3m)9.45%
EPS NQ rev (1m)12.07%
EPS NQ rev (3m)12.13%
EPS NY rev (1m)7.63%
EPS NY rev (3m)8.2%
Revenue NQ rev (1m)5.91%
Revenue NQ rev (3m)5.82%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.53 | ||
| P/S | 0.21 | ||
| P/FCF | 26.28 | ||
| P/OCF | 19.93 | ||
| P/B | 1.49 | ||
| P/tB | 27.31 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)12.46
EY8.04%
EPS(NY)14.71
Fwd EY9.5%
FCF(TTM)5.9
FCFY3.81%
OCF(TTM)7.78
OCFY5.02%
SpS748.69
BVpS103.8
TBVpS5.67
PEG (NY)0.94
PEG (5Y)N/A
Graham Number170.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 9.08% | ||
| ROCE | 10.52% | ||
| ROIC | 8.36% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 27.18% | ||
| OM | 2.21% | ||
| PM (TTM) | 1.26% | ||
| GM | 6.91% | ||
| FCFM | 0.79% |
ROA(3y)2.18%
ROA(5y)2.37%
ROE(3y)8.05%
ROE(5y)8.23%
ROIC(3y)7.79%
ROIC(5y)7.32%
ROICexc(3y)8.36%
ROICexc(5y)8.17%
ROICexgc(3y)25.16%
ROICexgc(5y)22.93%
ROCE(3y)9.8%
ROCE(5y)9.21%
ROICexgc growth 3Y14.05%
ROICexgc growth 5Y3.33%
ROICexc growth 3Y21.3%
ROICexc growth 5Y-3.93%
OM growth 3Y-2.36%
OM growth 5Y-10.29%
PM growth 3Y-1.88%
PM growth 5Y-10.96%
GM growth 3Y4.45%
GM growth 5Y-11%
F-Score5
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 8.83 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 37.19% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.03% | ||
| Profit Quality | 62.6% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.67 |
F-Score5
WACC9.58%
ROIC/WACC0.87
Cap/Depr(3y)34.7%
Cap/Depr(5y)39.65%
Cap/Sales(3y)0.25%
Cap/Sales(5y)0.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.4%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%25.17%
EPS Next Y13.3%
EPS Next 2Y12.29%
EPS Next 3Y12.34%
EPS Next 5YN/A
Revenue 1Y (TTM)6.94%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%6.58%
Revenue Next Year7.32%
Revenue Next 2Y5.9%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y5.75%
EBIT growth 3Y19.84%
EBIT growth 5Y7.42%
EBIT Next Year13.49%
EBIT Next 3Y8.63%
EBIT Next 5YN/A
FCF growth 1Y-64.51%
FCF growth 3Y11.36%
FCF growth 5Y20.38%
OCF growth 1Y-57.75%
OCF growth 3Y14.57%
OCF growth 5Y17.23%
TD SYNNEX CORP / SNX FAQ
What is the fundamental rating for SNX stock?
ChartMill assigns a fundamental rating of 4 / 10 to SNX.
What is the valuation status of TD SYNNEX CORP (SNX) stock?
ChartMill assigns a valuation rating of 6 / 10 to TD SYNNEX CORP (SNX). This can be considered as Fairly Valued.
What is the profitability of SNX stock?
TD SYNNEX CORP (SNX) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for SNX stock?
The Earnings per Share (EPS) of TD SYNNEX CORP (SNX) is expected to grow by 13.3% in the next year.
Is the dividend of TD SYNNEX CORP sustainable?
The dividend rating of TD SYNNEX CORP (SNX) is 6 / 10 and the dividend payout ratio is 18.83%.