TD SYNNEX CORP (SNX) Stock Fundamental Analysis
NYSE:SNX - New York Stock Exchange, Inc. - US87162W1009 - Common Stock
SNX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While SNX is still in line with the averages on profitability rating, there are concerns on its financial health. SNX is valued quite cheap, but it does not seem to be growing.
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.
Of the past 5 years SNX 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: SNX reported negative operating cash flow in multiple years.
1.2 Ratios
SNX's Return On Assets of 2.31% is in line compared to the rest of the industry. SNX outperforms 56.67% of its industry peers.
SNX's Return On Equity of 8.28% is fine compared to the rest of the industry. SNX outperforms 67.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.62%, SNX is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNX is below the industry average of 9.03%.
The 3 year average ROIC (6.64%) for SNX is below the current ROIC(7.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 8.28% | ||
| ROIC | 7.62% |
ROA(3y)1.9%
ROA(5y)2.77%
ROE(3y)6.87%
ROE(5y)9.15%
ROIC(3y)6.64%
ROIC(5y)7.72%
1.3 Margins
Looking at the Profit Margin, with a value of 1.19%, SNX is in line with its industry, outperforming 51.67% of the companies in the same industry.
SNX's Profit Margin has declined in the last couple of years.
SNX has a Operating Margin of 2.23%. This is comparable to the rest of the industry: SNX outperforms 53.33% of its industry peers.
In the last couple of years the Operating Margin of SNX has declined.
SNX has a worse Gross Margin (6.94%) than 87.50% of its industry peers.
SNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.23% | ||
| PM (TTM) | 1.19% | ||
| GM | 6.94% |
OM growth 3Y-14.31%
OM growth 5Y-4.32%
PM growth 3Y-20.11%
PM growth 5Y-6.38%
GM growth 3Y-15.86%
GM growth 5Y-6.75%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
Looking at the Altman-Z score, with a value of 2.73, SNX is doing worse than 60.83% of the companies in the same industry.
The Debt to FCF ratio of SNX is 5.80, which is a neutral value as it means it would take SNX, 5.80 years of fcf income to pay off all of its debts.
SNX has a Debt to FCF ratio (5.80) 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.
Looking at the Debt to Equity ratio, with a value of 0.46, SNX is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.72
WACC10.62%
2.3 Liquidity
A Current Ratio of 1.25 indicates that SNX should not have too much problems paying its short term obligations.
SNX has a Current ratio of 1.25. This is amonst the worse of the industry: SNX underperforms 87.50% of its industry peers.
A Quick Ratio of 0.77 indicates that SNX may have some problems paying its short term obligations.
SNX has a worse Quick ratio (0.77) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SNX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
SNX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.52% yearly.
EPS 1Y (TTM)3.55%
EPS 3Y9.13%
EPS 5Y-2.52%
EPS Q2Q%-1.28%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.98%
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 12.56% on average per year.
SNX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.16% yearly.
EPS Next Y11.22%
EPS Next 2Y12.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.6%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.13 indicates a correct valuation of SNX.
Based on the Price/Earnings ratio, SNX is valued cheaper than 94.17% of the companies in the same industry.
SNX is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of SNX.
SNX's Price/Forward Earnings ratio is rather cheap when compared to the industry. SNX is cheaper than 95.00% of the companies in the same industry.
SNX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNX is valued cheaper than 87.50% of the companies in the same industry.
SNX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SNX is cheaper than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.24 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
SNX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SNX's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y12.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SNX has a Yearly Dividend Yield of 1.28%. 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 1.87. SNX pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of SNX has a limited annual growth rate of 1.63%.
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)1.63%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SNX pays out 20.05% of its income as dividend. This is a sustainable payout ratio.
SNX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.05%
EPS Next 2Y12.56%
EPS Next 3YN/A
TD SYNNEX CORP
NYSE:SNX (1/22/2025, 2:47:49 PM)
141.42
+0.65 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners89.09%
Inst Owner Change-0.06%
Ins Owners0.82%
Ins Owner Change-1.63%
Market Cap12.03B
Analysts82.35
Price Target141.22 (-0.14%)
Short Float %1.9%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.42
Dividend Growth(5Y)1.63%
DP20.05%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.5%
Min EPS beat(2)-4.18%
Max EPS beat(2)1.18%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-4.18%
Max EPS beat(4)15.79%
EPS beat(8)6
Avg EPS beat(8)5.17%
EPS beat(12)9
Avg EPS beat(12)4.86%
EPS beat(16)13
Avg EPS beat(16)15.2%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)3.01%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.63%
Max Revenue beat(4)3.01%
Revenue beat(8)2
Avg Revenue beat(8)-1.61%
Revenue beat(12)5
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)-0.91%
PT rev (1m)-0.2%
PT rev (3m)0.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.9 | ||
| P/S | 0.21 | ||
| P/FCF | 17.24 | ||
| P/OCF | 13.89 | ||
| P/B | 1.47 | ||
| P/tB | 82.64 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)11.67
EY8.25%
EPS(NY)12.98
Fwd EY9.18%
FCF(TTM)8.2
FCFY5.8%
OCF(TTM)10.18
OCFY7.2%
SpS670.06
BVpS95.95
TBVpS1.71
PEG (NY)1.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 8.28% | ||
| ROCE | 9.63% | ||
| ROIC | 7.62% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 23.17% | ||
| OM | 2.23% | ||
| PM (TTM) | 1.19% | ||
| GM | 6.94% | ||
| FCFM | 1.22% |
ROA(3y)1.9%
ROA(5y)2.77%
ROE(3y)6.87%
ROE(5y)9.15%
ROIC(3y)6.64%
ROIC(5y)7.72%
ROICexc(3y)7.09%
ROICexc(5y)8.5%
ROICexgc(3y)22.43%
ROICexgc(5y)22.09%
ROCE(3y)8.39%
ROCE(5y)9.76%
ROICexcg growth 3Y8.38%
ROICexcg growth 5Y11.3%
ROICexc growth 3Y-7.51%
ROICexc growth 5Y4.24%
OM growth 3Y-14.31%
OM growth 5Y-4.32%
PM growth 3Y-20.11%
PM growth 5Y-6.38%
GM growth 3Y-15.86%
GM growth 5Y-6.75%
F-Score6
Asset Turnover1.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.8 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 41.28% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.53% | ||
| Profit Quality | 103.26% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.73 |
F-Score6
WACC10.62%
ROIC/WACC0.72
Cap/Depr(3y)32.44%
Cap/Depr(5y)38.44%
Cap/Sales(3y)0.21%
Cap/Sales(5y)0.4%
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 2Y12.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.98%
Revenue Next Year5.6%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.43%
EBIT growth 3Y13.64%
EBIT growth 5Y18.48%
EBIT Next Year7.91%
EBIT Next 3Y7.02%
EBIT Next 5Y6.53%
FCF growth 1Y676.2%
FCF growth 3Y-8.41%
FCF growth 5YN/A
OCF growth 1Y314.17%
OCF growth 3Y-8.45%
OCF growth 5Y69.46%