TD SYNNEX CORP (SNX) Stock Fundamental Analysis
NYSE:SNX - New York Stock Exchange, Inc. - US87162W1009 - Common Stock - Currency: USD
Overall SNX gets a fundamental rating of 4 out of 10. We evaluated SNX against 124 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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
The Return On Assets of SNX (2.26%) is comparable to the rest of the industry.
The Return On Equity of SNX (8.50%) is better than 69.17% of its industry peers.
SNX has a better Return On Invested Capital (7.71%) than 72.50% 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 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 8.5% | ||
| ROIC | 7.71% |
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 (1.17%) 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 (2.17%) which is in line with its industry peers.
SNX's Operating Margin has declined in the last couple of years.
SNX's Gross Margin of 6.81% is on the low side compared to the rest of the industry. SNX is outperformed by 87.50% of its industry peers.
SNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.17% | ||
| PM (TTM) | 1.17% | ||
| GM | 6.81% |
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.
Compared to 5 years ago, SNX has more shares outstanding
SNX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.69 indicates that SNX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SNX (2.69) is comparable to the rest of the industry.
The Debt to FCF ratio of SNX is 3.75, which is a good value as it means it would take SNX, 3.75 years of fcf income to pay off all of its debts.
SNX has a Debt to FCF ratio (3.75) which is in line with its industry peers.
SNX has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
SNX has a worse Debt to Equity ratio (0.46) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.85
WACC9.02%
2.3 Liquidity
SNX has a Current Ratio of 1.24. This is a normal value and indicates that SNX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SNX (1.24) is worse than 86.67% of its industry peers.
SNX has a Quick Ratio of 1.24. This is a bad value and indicates that SNX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SNX (0.76) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% 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.
Looking at the last year, SNX shows a very negative growth in Revenue. The Revenue has decreased by -19.58% in the last year.
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)3.55%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%-1.28%
Revenue 1Y (TTM)-19.58%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%9.98%
3.2 Future
The Earnings Per Share is expected to grow by 12.50% on average over the next years. This is quite good.
SNX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y11.22%
EPS Next 2Y12.69%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue Next Year6.41%
Revenue Next 2Y5.9%
Revenue Next 3Y5.67%
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 12.14, SNX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SNX indicates a rather cheap valuation: SNX is cheaper than 94.17% of the companies listed in the same industry.
SNX is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.92, 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 92.50% 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 (22.68), we can say SNX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SNX is valued cheaper than 88.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SNX's earnings are expected to grow with 12.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y12.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, SNX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.92, SNX pays a better dividend. On top of this SNX pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
20.22% 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.
DP20.22%
EPS Next 2Y12.69%
EPS Next 3Y12.5%
141.67
-1.63 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners90.46%
Inst Owner Change2.9%
Ins Owners0.71%
Ins Owner Change-2.15%
Market Cap11.99B
Analysts82.5
Price Target149.12 (5.26%)
Short Float %1.6%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.6
Dividend Growth(5Y)1.3%
DP20.22%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.77%
Min EPS beat(2)0.36%
Max EPS beat(2)1.18%
EPS beat(4)3
Avg EPS beat(4)0.38%
Min EPS beat(4)-4.18%
Max EPS beat(4)4.15%
EPS beat(8)6
Avg EPS beat(8)3.09%
EPS beat(12)9
Avg EPS beat(12)4.39%
EPS beat(16)13
Avg EPS beat(16)4.9%
Revenue beat(2)2
Avg Revenue beat(2)3.04%
Min Revenue beat(2)3.01%
Max Revenue beat(2)3.07%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-3.63%
Max Revenue beat(4)3.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.44%
Revenue beat(12)5
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-2.76%
PT rev (1m)5.59%
PT rev (3m)5.38%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)-8.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.21 | ||
| P/FCF | 11.5 | ||
| P/OCF | 9.85 | ||
| P/B | 1.49 | ||
| P/tB | 52.58 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)11.67
EY8.24%
EPS(NY)12.98
Fwd EY9.16%
FCF(TTM)12.32
FCFY8.69%
OCF(TTM)14.39
OCFY10.15%
SpS690.52
BVpS94.93
TBVpS2.69
PEG (NY)1.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 8.5% | ||
| ROCE | 9.7% | ||
| ROIC | 7.71% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 24.03% | ||
| OM | 2.17% | ||
| PM (TTM) | 1.17% | ||
| GM | 6.81% | ||
| FCFM | 1.78% |
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-Score5
Asset Turnover1.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 42.97% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 72.78% | ||
| Profit Quality | 152.66% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.69 |
F-Score5
WACC9.02%
ROIC/WACC0.85
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)3.55%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%-1.28%
EPS Next Y11.22%
EPS Next 2Y12.69%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.58%
Revenue growth 3Y22.74%
Revenue growth 5Y19.73%
Sales Q2Q%9.98%
Revenue Next Year6.41%
Revenue Next 2Y5.9%
Revenue Next 3Y5.67%
Revenue Next 5YN/A
EBIT growth 1Y-22.53%
EBIT growth 3Y19.84%
EBIT growth 5Y7.42%
EBIT Next Year15.75%
EBIT Next 3Y9.73%
EBIT Next 5YN/A
FCF growth 1Y-17.08%
FCF growth 3Y11.36%
FCF growth 5Y20.38%
OCF growth 1Y-13.48%
OCF growth 3Y14.57%
OCF growth 5Y17.23%