TD SYNNEX CORP (SNX) Stock Fundamental Analysis
NYSE:SNX - New York Stock Exchange, Inc. - US87162W1009 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SNX. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SNX was profitable.
SNX had a positive operating cash flow in the past year.
SNX had positive earnings in each of the past 5 years.
SNX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNX has a better Return On Assets (2.36%) than 60.80% of its industry peers.
SNX's Return On Equity of 8.43% is fine compared to the rest of the industry. SNX outperforms 72.80% of its industry peers.
SNX has a better Return On Invested Capital (7.53%) than 76.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SNX is in line with the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.43% | ||
| ROIC | 7.53% |
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 1.15% is in line compared to the rest of the industry. SNX outperforms 54.40% of its industry peers.
In the last couple of years the Profit Margin of SNX has declined.
SNX has a Operating Margin of 2.10%. This is comparable to the rest of the industry: SNX outperforms 53.60% of its industry peers.
In the last couple of years the Operating Margin of SNX has declined.
SNX has a worse Gross Margin (6.73%) than 87.20% of its industry peers.
SNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.1% | ||
| PM (TTM) | 1.15% | ||
| GM | 6.73% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SNX 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
An Altman-Z score of 2.85 indicates that SNX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.85, SNX is in line with its industry, outperforming 41.60% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that SNX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, SNX is not doing good in the industry: 69.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.85 |
ROIC/WACC0.77
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SNX should not have too much problems paying its short term obligations.
SNX has a Current ratio of 1.27. This is amonst the worse of the industry: SNX underperforms 84.80% of its industry peers.
SNX has a Quick Ratio of 1.27. 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 0.74 is on the low side compared to the rest of the industry. SNX is outperformed by 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.95% over the past year.
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.
The Revenue has been growing slightly by 1.56% in the past year.
The Revenue has been growing by 19.73% on average over the past years. This is quite good.
EPS 1Y (TTM)0.95%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%9.52%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%7.16%
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 9.79% on average per year.
Based on estimates for the next years, SNX will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y2.09%
EPS Next 2Y7.65%
EPS Next 3Y9.79%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y3.98%
Revenue Next 3Y4.16%
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
The Price/Earnings ratio is 12.08, which indicates a correct valuation of SNX.
SNX's Price/Earnings ratio is rather cheap when compared to the industry. SNX is cheaper than 94.40% of the companies in the same industry.
SNX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 10.48, which indicates a very decent valuation of SNX.
SNX's Price/Forward Earnings ratio is rather cheap when compared to the industry. SNX is cheaper than 96.00% of the companies in the same industry.
SNX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.78
PEG (5Y)N/A
EPS Next 2Y7.65%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, SNX has a reasonable but not impressive dividend return.
SNX's Dividend Yield is rather good when compared to the industry average which is at 1.76. SNX pays more dividend than 88.80% of the companies in the same industry.
With a Dividend Yield of 1.26, SNX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
20.59% 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.
DP20.59%
EPS Next 2Y7.65%
EPS Next 3Y9.79%
141.79
-0.59 (-0.41%)
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 Cap11.90B
Analysts82.35
Price Target138.92 (-2.02%)
Short Float %3.84%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend1.6
Dividend Growth(5Y)1.3%
DP20.59%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.12%
Min EPS beat(2)-4.6%
Max EPS beat(2)0.36%
EPS beat(4)2
Avg EPS beat(4)-1.81%
Min EPS beat(4)-4.6%
Max EPS beat(4)1.18%
EPS beat(8)5
Avg EPS beat(8)2.29%
EPS beat(12)8
Avg EPS beat(12)3.17%
EPS beat(16)12
Avg EPS beat(16)3.96%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)3.07%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)3.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)4
Avg Revenue beat(12)-1.02%
Revenue beat(16)7
Avg Revenue beat(16)-3.16%
PT rev (1m)0.72%
PT rev (3m)-3.13%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-10.33%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.48 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | 139.96 | ||
| P/B | 1.48 | ||
| P/tB | 33.64 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)11.74
EY8.28%
EPS(NY)13.52
Fwd EY9.54%
FCF(TTM)-1.08
FCFYN/A
OCF(TTM)1.01
OCFY0.71%
SpS703.16
BVpS95.93
TBVpS4.21
PEG (NY)5.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.43% | ||
| ROCE | 9.47% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 20.38% | ||
| OM | 2.1% | ||
| PM (TTM) | 1.15% | ||
| GM | 6.73% | ||
| FCFM | N/A |
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-Score4
Asset Turnover2.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 43.17% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 5.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.85 |
F-Score4
WACC9.82%
ROIC/WACC0.77
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 Y2.09%
EPS Next 2Y7.65%
EPS Next 3Y9.79%
EPS Next 5YN/A
Revenue 1Y (TTM)1.56%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%7.16%
Revenue Next Year3.4%
Revenue Next 2Y3.98%
Revenue Next 3Y4.16%
Revenue Next 5YN/A
EBIT growth 1Y-23.58%
EBIT growth 3Y19.84%
EBIT growth 5Y7.42%
EBIT Next Year7.39%
EBIT Next 3Y6.74%
EBIT Next 5YN/A
FCF growth 1Y-108.71%
FCF growth 3Y11.36%
FCF growth 5Y20.38%
OCF growth 1Y-92.72%
OCF growth 3Y14.57%
OCF growth 5Y17.23%