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 124 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years SNX has always been profitable.
Of the past 5 years SNX 4 years had a positive operating cash flow.
1.2 Ratios
SNX's Return On Assets of 2.36% is in line compared to the rest of the industry. SNX outperforms 58.87% of its industry peers.
SNX's Return On Equity of 8.43% is fine compared to the rest of the industry. SNX outperforms 70.16% of its industry peers.
The Return On Invested Capital of SNX (7.53%) is better than 75.00% 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 9.14%.
| 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
The Profit Margin of SNX (1.15%) is comparable to the rest of the industry.
SNX's Profit Margin has declined in the last couple of years.
SNX has a Operating Margin (2.10%) which is in line with its industry peers.
SNX's Operating Margin has declined in the last couple of years.
SNX has a Gross Margin of 6.73%. This is amonst the worse of the industry: SNX underperforms 86.29% of its industry peers.
In the last couple of years the Gross Margin of SNX has declined.
| 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
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.
The number of shares outstanding for SNX has been increased compared to 5 years ago.
The debt/assets ratio for SNX has been reduced compared to a year ago.
2.2 Solvency
SNX has an Altman-Z score of 2.77. 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.
The Altman-Z score of SNX (2.77) is comparable to the rest of the 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: 68.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC0.8
WACC9.39%
2.3 Liquidity
SNX has a Current Ratio of 1.27. This is a normal value and indicates that SNX is financially healthy and should not expect problems in meeting its short term obligations.
SNX's Current ratio of 1.27 is on the low side compared to the rest of the industry. SNX is outperformed by 85.48% of its industry peers.
A Quick Ratio of 0.74 indicates that SNX may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, SNX is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
| 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 1.32% 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 for SNX has decreased by -17.51% in the past year. This is quite bad
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)1.32%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%-6.35%
Revenue 1Y (TTM)-17.51%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%3.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.03% on average over the next years.
EPS Next Y2.1%
EPS Next 2Y7.47%
EPS Next 3Y10.62%
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y4.12%
Revenue Next 3Y4.03%
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
A Price/Earnings ratio of 9.61 indicates a reasonable valuation of SNX.
96.77% of the companies in the same industry are more expensive than SNX, based on the Price/Earnings ratio.
SNX is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.19, the valuation of SNX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SNX is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
SNX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
SNX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNX is cheaper than 88.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.79 |
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)4.57
PEG (5Y)N/A
EPS Next 2Y7.47%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, SNX has a reasonable but not impressive dividend return.
The stock price of SNX dropped by -22.55% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.39, SNX pays a better dividend. On top of this SNX pays more dividend than 88.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.51, SNX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 2Y7.47%
EPS Next 3Y10.62%
110.36
+2.93 (+2.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.46%
Inst Owner Change0.21%
Ins Owners0.71%
Ins Owner Change-2.08%
Market Cap9.26B
Analysts82.5
Price Target143.4 (29.94%)
Short Float %1.66%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)-3.83%
PT rev (3m)1.55%
EPS NQ rev (1m)-10.17%
EPS NQ rev (3m)-10.48%
EPS NY rev (1m)-8.2%
EPS NY rev (3m)-8.2%
Revenue NQ rev (1m)-3.07%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | 108.94 | ||
| P/B | 1.15 | ||
| P/tB | 26.19 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)11.48
EY10.4%
EPS(NY)13.48
Fwd EY12.21%
FCF(TTM)-1.08
FCFYN/A
OCF(TTM)1.01
OCFY0.92%
SpS703.16
BVpS95.93
TBVpS4.21
PEG (NY)4.57
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 | 2.77 |
F-Score4
WACC9.39%
ROIC/WACC0.8
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)1.32%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%-6.35%
EPS Next Y2.1%
EPS Next 2Y7.47%
EPS Next 3Y10.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.51%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%3.98%
Revenue Next Year3.57%
Revenue Next 2Y4.12%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
EBIT growth 1Y-23.58%
EBIT growth 3Y19.84%
EBIT growth 5Y7.42%
EBIT Next Year9.46%
EBIT Next 3Y7.52%
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%