TD SYNNEX CORP (SNX)
US87162W1009 - Common Stock
Taking everything into account, SNX scores 5 out of 10 in our fundamental rating. SNX was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of SNX get a neutral evaluation. Nothing too spectacular is happening here. SNX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SNX had positive earnings in the past year.
SNX had a positive operating cash flow in the past year.
SNX had positive earnings in each of the past 5 years.
Of the past 5 years SNX 4 years had a positive operating cash flow.
1.2 Ratios
SNX's Return On Assets of 2.85% is in line compared to the rest of the industry. SNX outperforms 57.94% of its industry peers.
Looking at the Return On Equity, with a value of 9.78%, SNX is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
The Return On Invested Capital of SNX (10.20%) is better than 77.78% of its industry peers.
SNX had an Average Return On Invested Capital over the past 3 years of 6.64%. This is below the industry average of 9.44%.
The last Return On Invested Capital (10.20%) for SNX is above the 3 year average (6.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.78% | ||
| ROIC | 10.2% |
ROA(3y)1.9%
ROA(5y)2.77%
ROE(3y)6.87%
ROE(5y)9.15%
ROIC(3y)6.64%
ROIC(5y)7.72%
1.3 Margins
With a Profit Margin value of 1.11%, SNX perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
In the last couple of years the Profit Margin of SNX has declined.
SNX's Operating Margin of 2.26% is in line compared to the rest of the industry. SNX outperforms 53.17% of its industry peers.
SNX's Operating Margin has declined in the last couple of years.
SNX has a Gross Margin of 6.94%. This is amonst the worse of the industry: SNX underperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of SNX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.26% | ||
| PM (TTM) | 1.11% | ||
| GM | 6.94% |
OM growth 3Y-14.31%
OM growth 5Y-4.32%
PM growth 3Y-20.11%
PM growth 5Y-6.38%
GM growth 3Y-15.86%
GM growth 5Y-6.75%
2. Health
2.1 Basic Checks
SNX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SNX has been reduced compared to 1 year ago.
The number of shares outstanding for SNX has been increased compared to 5 years ago.
SNX has a worse debt/assets ratio than last year.
2.2 Solvency
SNX has an Altman-Z score of 3.34. This indicates that SNX is financially healthy and has little risk of bankruptcy at the moment.
SNX has a Altman-Z score of 3.34. This is in the better half of the industry: SNX outperforms 63.49% of its industry peers.
The Debt to FCF ratio of SNX is 2.30, which is a good value as it means it would take SNX, 2.30 years of fcf income to pay off all of its debts.
SNX has a better Debt to FCF ratio (2.30) than 72.22% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that SNX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, SNX is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
Although SNX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.09
WACC9.35%
2.3 Liquidity
SNX has a Current Ratio of 1.22. This is a normal value and indicates that SNX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.22, SNX is doing worse than 84.92% of the companies in the same industry.
SNX has a Quick Ratio of 1.22. This is a bad value and indicates that SNX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, SNX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
SNX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.23%.
SNX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.97% yearly.
SNX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.37%.
The Revenue has been growing by 23.83% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.23%
EPS 3Y-6.14%
EPS 5Y0.97%
EPS growth Q2Q2.05%
Revenue 1Y (TTM)15.37%
Revenue growth 3Y32.62%
Revenue growth 5Y23.83%
Revenue growth Q2Q-7.6%
3.2 Future
Based on estimates for the next years, SNX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.55% on average per year.
Based on estimates for the next years, SNX will show a small growth in Revenue. The Revenue will grow by 2.53% on average per year.
EPS Next Y7.87%
EPS Next 2Y8.64%
EPS Next 3Y9.55%
EPS Next 5YN/A
Revenue Next Year0.52%
Revenue Next 2Y2.56%
Revenue Next 3Y2.53%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 10.37, the valuation of SNX can be described as very reasonable.
91.27% of the companies in the same industry are more expensive than SNX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.92, SNX is valued rather cheaply.
SNX is valuated reasonably with a Price/Forward Earnings ratio of 8.83.
95.24% of the companies in the same industry are more expensive than SNX, based on the Price/Forward Earnings ratio.
SNX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SNX is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 6.5 |
4.3 Compensation for Growth
SNX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.32
PEG (5Y)10.71
EPS Next 2Y8.64%
EPS Next 3Y9.55%
5. Dividend
5.1 Amount
SNX has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
SNX's Dividend Yield is rather good when compared to the industry average which is at 1.76. SNX pays more dividend than 91.27% of the companies in the same industry.
With a Dividend Yield of 1.36, SNX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of SNX has a limited annual growth rate of 1.63%.
SNX has paid a dividend for at least 10 years, which is a reliable track record.
SNX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.63%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
16.76% of the earnings are spent on dividend by SNX. This is a low number and sustainable payout ratio.
The dividend of SNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.76%
EPS Next 2Y8.64%
EPS Next 3Y9.55%
TD SYNNEX CORP
NYSE:SNX (4/26/2024, 7:16:56 PM)
After market: 117.44 0 (0%)117.44
+0.06 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.32
PEG (5Y)10.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.26% | ||
| PM (TTM) | 1.11% | ||
| GM | 6.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.23%
EPS 3Y-6.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.37%
Revenue growth 3Y32.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y