TD SYNNEX CORP (SNX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNX - US87162W1009 - Common Stock
153.23 USD
+0.85 (+0.56%)
153.23 USD
0 (0%)
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 has a bad growth rate and is valued cheaply.
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
- Looking at the Return On Assets, with a value of 2.42%, SNX is in line with its industry, outperforming 59.68% of the companies in the same industry.
- SNX has a better Return On Equity (9.08%) than 70.97% of its industry peers.
- With a decent Return On Invested Capital value of 8.36%, SNX is doing good in the industry, outperforming 77.42% of the companies in the same industry.
- 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 8.83%.
- 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 of 1.26%. This is comparable to the rest of the industry: SNX outperforms 51.61% of its industry peers.
- In the last couple of years the Profit Margin of SNX has declined.
- The Operating Margin of SNX (2.21%) is comparable to the rest of the industry.
- SNX's Operating Margin has declined in the last couple of years.
- SNX has a Gross Margin of 6.91%. This is amonst the worse of the industry: SNX underperforms 85.48% of its industry peers.
- In the last couple of years the Gross Margin of SNX has declined.
| 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.
- There is no outstanding debt for SNX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
- With a Altman-Z score value of 2.67, SNX is not doing good in the industry: 62.10% of the companies in the same industry are doing better.
- SNX has a debt to FCF ratio of 8.83. This is a slightly negative value and a sign of low solvency as SNX would need 8.83 years to pay back of all of its debts.
- The Debt to FCF ratio of SNX (8.83) is comparable to the rest of the industry.
- SNX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- SNX has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.61
WACC13.73%
2.3 Liquidity
- SNX has a Current Ratio of 1.20. This is a normal value and indicates that SNX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.20, SNX is not doing good in the industry: 84.68% of the companies in the same industry are doing better.
- A Quick Ratio of 0.71 indicates that SNX may have some problems paying its short term obligations.
- The Quick ratio of SNX (0.71) is worse than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- SNX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.11%, which is quite good.
- The Earnings Per Share has been decreasing by -0.64% on average over the past years.
EPS 1Y (TTM)13.11%
EPS 3Y3.43%
EPS 5Y-0.64%
EPS Q2Q%23.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.69%
3.2 Future
- The Earnings Per Share is expected to grow by 11.49% 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 4.41% yearly.
EPS Next Y11.43%
EPS Next 2Y11.84%
EPS Next 3Y11.49%
EPS Next 5YN/A
Revenue Next Year4.96%
Revenue Next 2Y4.58%
Revenue Next 3Y4.41%
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 11.61 indicates a reasonable valuation of SNX.
- 92.74% 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 (27.21), we can say SNX is valued rather cheaply.
- SNX is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
- Based on the Price/Forward Earnings ratio, SNX is valued cheaply inside the industry as 92.74% 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 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
- SNX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNX is cheaper than 92.74% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SNX is valued a bit cheaper than 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.99 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
- SNX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y11.84%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
- SNX has a Yearly Dividend Yield of 1.26%.
- SNX's Dividend Yield is rather good when compared to the industry average which is at 0.46. SNX pays more dividend than 90.32% of the companies in the same industry.
- SNX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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
- SNX pays out 18.83% of its income as dividend. This is a sustainable payout ratio.
- The dividend of SNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.83%
EPS Next 2Y11.84%
EPS Next 3Y11.49%
TD SYNNEX CORP / SNX FAQ
Can you provide the ChartMill fundamental rating for TD SYNNEX CORP?
ChartMill assigns a fundamental rating of 4 / 10 to SNX.
What is the valuation status for SNX stock?
ChartMill assigns a valuation rating of 7 / 10 to TD SYNNEX CORP (SNX). This can be considered as Undervalued.
Can you provide the profitability details for TD SYNNEX CORP?
TD SYNNEX CORP (SNX) has a profitability rating of 4 / 10.
What is the valuation of TD SYNNEX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TD SYNNEX CORP (SNX) is 11.61 and the Price/Book (PB) ratio is 1.48.
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 11.43% in the next year.