TD SYNNEX CORP (SNX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNX - US87162W1009 - Common Stock
154.49 USD
+0.48 (+0.31%)
154.49 USD
0 (0%)
SNX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 125 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.
SNX had a positive operating cash flow in the past year.
Each year in the past 5 years SNX has been profitable.
Of the past 5 years SNX 4 years had a positive operating cash flow.
1.2 Ratios
SNX has a Return On Assets (2.42%) which is comparable to the rest of the industry.
The Return On Equity of SNX (9.08%) is better than 70.40% of its industry peers.
The Return On Invested Capital of SNX (8.36%) is better than 76.80% of its industry peers.
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 9.17%.
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 has a Profit Margin (1.26%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SNX has declined.
SNX's Operating Margin of 2.21% is in line compared to the rest of the industry. SNX outperforms 52.00% of its industry peers.
In the last couple of years the Operating Margin of SNX has declined.
SNX has a worse Gross Margin (6.91%) than 86.40% 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
SNX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SNX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SNX has been increased compared to 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 62.40% 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.
Looking at the Debt to FCF ratio, with a value of 8.83, SNX is in line with its industry, outperforming 54.40% of the companies in the same industry.
SNX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, SNX is not doing good in the industry: 60.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.89
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.20 indicates that SNX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, SNX is not doing good in the industry: 86.40% of the companies in the same industry are doing better.
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.
SNX's Quick ratio of 0.71 is on the low side compared to the rest of the industry. SNX is outperformed by 91.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
SNX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.40%.
Measured over the past years, SNX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.52% on average per year.
SNX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.94%.
SNX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.73% yearly.
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
Based on estimates for the next years, SNX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.34% on average per year.
The Revenue is expected to grow by 5.38% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SNX is valuated correctly with a Price/Earnings ratio of 12.40.
89.60% of the companies in the same industry are more expensive than SNX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SNX to the average of the S&P500 Index (26.41), we can say SNX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of SNX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNX indicates a rather cheap valuation: SNX is cheaper than 92.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SNX to the average of the S&P500 Index (35.40), we can say SNX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
89.60% of the companies in the same industry are more expensive than SNX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SNX is valued a bit cheaper than the industry average as 74.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.2 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
The 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)0.93
PEG (5Y)N/A
EPS Next 2Y12.29%
EPS Next 3Y12.34%
5. Dividend
5.1 Amount
SNX has a Yearly Dividend Yield of 1.16%.
SNX's Dividend Yield is rather good when compared to the industry average which is at 2.37. SNX pays more dividend than 87.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of SNX has a limited annual growth rate of 1.30%.
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)1.3%
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.
The dividend of SNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.83%
EPS Next 2Y12.29%
EPS Next 3Y12.34%
154.49
+0.48 (+0.31%)
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-1.81%
Ins Owners0.73%
Ins Owner Change0.42%
Market Cap12.58B
Revenue(TTM)60.97B
Net Income(TTM)767.18M
Analysts82.35
Price Target179.99 (16.51%)
Short Float %2.43%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)5.38%
PT rev (3m)14.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.16%
EPS NY rev (1m)0%
EPS NY rev (3m)7.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.21 | ||
| P/FCF | 26.2 | ||
| P/OCF | 19.87 | ||
| P/B | 1.49 | ||
| P/tB | 27.23 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)12.46
EY8.07%
EPS(NY)14.71
Fwd EY9.52%
FCF(TTM)5.9
FCFY3.82%
OCF(TTM)7.78
OCFY5.03%
SpS748.69
BVpS103.8
TBVpS5.67
PEG (NY)0.93
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
WACC9.36%
ROIC/WACC0.89
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 7 / 10 to TD SYNNEX CORP (SNX). This can be considered as Undervalued.
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%.