TD SYNNEX CORP (SNX) Stock Fundamental Analysis
NYSE:SNX - New York Stock Exchange, Inc. - US87162W1009 - Common Stock - Currency: USD
Taking everything into account, SNX scores 4 out of 10 in our fundamental rating. SNX was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. SNX has a medium profitability rating, but doesn't score so well on its financial health evaluation. SNX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SNX was profitable.
In the past year SNX had a positive cash flow from operations.
Each year in the past 5 years SNX has been profitable.
SNX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SNX (2.36%) is better than 60.80% of its industry peers.
With a decent Return On Equity value of 8.62%, SNX is doing good in the industry, outperforming 73.60% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.50%, SNX is doing good in the industry, outperforming 76.80% of the companies in the same industry.
SNX had an Average Return On Invested Capital over the past 3 years of 7.79%. This is in line with the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.62% | ||
| ROIC | 7.5% |
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 has a Profit Margin (1.20%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SNX has declined.
SNX has a Operating Margin (2.11%) which is in line with its industry peers.
SNX's Operating Margin has declined in the last couple of years.
SNX has a worse Gross Margin (6.74%) than 87.20% of its industry peers.
SNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.11% | ||
| PM (TTM) | 1.2% | ||
| GM | 6.74% |
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.
Compared to 1 year ago, SNX has less shares outstanding
SNX has more shares outstanding than it did 5 years ago.
SNX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 indicates that SNX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.73, SNX is not doing good in the industry: 64.80% of the companies in the same industry are doing better.
SNX has a debt to FCF ratio of 6.79. This is a slightly negative value and a sign of low solvency as SNX would need 6.79 years to pay back of all of its debts.
SNX has a Debt to FCF ratio (6.79) which is in line with its industry peers.
A Debt/Equity ratio of 0.45 indicates that SNX is not too dependend on debt financing.
SNX's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. SNX is outperformed by 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.79 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.75
WACC9.95%
2.3 Liquidity
SNX has a Current Ratio of 1.26. This is a normal value and indicates that SNX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.26, SNX is not doing good in the industry: 84.80% of the companies in the same industry are doing better.
SNX has a Quick Ratio of 1.26. 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: 88.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
SNX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.95%.
SNX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.52% yearly.
Looking at the last year, SNX shows a small growth in Revenue. The Revenue has grown by 6.60% in the last year.
Measured over the past years, SNX shows a quite strong growth in Revenue. The Revenue has been growing by 19.73% on average per year.
EPS 1Y (TTM)0.95%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%9.52%
Revenue 1Y (TTM)6.6%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%7.16%
3.2 Future
SNX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.04% yearly.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y4.71%
EPS Next 2Y8.45%
EPS Next 3Y10.04%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y4.46%
Revenue Next 3Y4.5%
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
SNX is valuated correctly with a Price/Earnings ratio of 12.01.
Compared to the rest of the industry, the Price/Earnings ratio of SNX indicates a rather cheap valuation: SNX is cheaper than 94.40% of the companies listed in the same industry.
SNX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
The Price/Forward Earnings ratio is 10.27, which indicates a very decent valuation of SNX.
Based on the Price/Forward Earnings ratio, SNX is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.34. SNX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaply inside the industry as 91.20% of the companies are valued more expensively.
SNX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SNX is cheaper than 81.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.55
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y10.04%
5. Dividend
5.1 Amount
SNX has a Yearly Dividend Yield of 1.24%. 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 1.84. SNX pays more dividend than 88.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
19.79% 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.
DP19.79%
EPS Next 2Y8.45%
EPS Next 3Y10.04%
140.98
-1.13 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners91.59%
Inst Owner Change-0.01%
Ins Owners0.75%
Ins Owner Change-0.9%
Market Cap11.63B
Analysts82.35
Price Target138.92 (-1.46%)
Short Float %3.79%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.6
Dividend Growth(5Y)1.3%
DP19.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.21%
Min EPS beat(2)-4.6%
Max EPS beat(2)9.03%
EPS beat(4)3
Avg EPS beat(4)1.49%
Min EPS beat(4)-4.6%
Max EPS beat(4)9.03%
EPS beat(8)6
Avg EPS beat(8)4.11%
EPS beat(12)8
Avg EPS beat(12)3.79%
EPS beat(16)12
Avg EPS beat(16)4.09%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)1.69%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-4%
PT rev (1m)0.72%
PT rev (3m)-3.13%
EPS NQ rev (1m)2.61%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)2.55%
EPS NY rev (3m)-5.86%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.19 | ||
| P/FCF | 19.22 | ||
| P/OCF | 15.04 | ||
| P/B | 1.39 | ||
| P/tB | 25.75 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)11.74
EY8.33%
EPS(NY)13.73
Fwd EY9.74%
FCF(TTM)7.34
FCFY5.2%
OCF(TTM)9.37
OCFY6.65%
SpS727.63
BVpS101.16
TBVpS5.48
PEG (NY)2.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.62% | ||
| ROCE | 9.44% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.96% | ||
| ROICexgc | 21.24% | ||
| OM | 2.11% | ||
| PM (TTM) | 1.2% | ||
| GM | 6.74% | ||
| FCFM | 1.01% |
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%
ROICexcg growth 3Y14.05%
ROICexcg 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-Score6
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.79 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 41.58% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.35% | ||
| Profit Quality | 84.1% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.73 |
F-Score6
WACC9.95%
ROIC/WACC0.75
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)0.95%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%9.52%
EPS Next Y4.71%
EPS Next 2Y8.45%
EPS Next 3Y10.04%
EPS Next 5YN/A
Revenue 1Y (TTM)6.6%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%7.16%
Revenue Next Year4.7%
Revenue Next 2Y4.46%
Revenue Next 3Y4.5%
Revenue Next 5YN/A
EBIT growth 1Y-1.36%
EBIT growth 3Y19.84%
EBIT growth 5Y7.42%
EBIT Next Year7.39%
EBIT Next 3Y6.74%
EBIT Next 5YN/A
FCF growth 1Y-13.76%
FCF growth 3Y11.36%
FCF growth 5Y20.38%
OCF growth 1Y-7.95%
OCF growth 3Y14.57%
OCF growth 5Y17.23%