NYSE:SYX

Stock Analysis Report

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Executive Summary

Systemax Inc., through its subsidiaries, operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Systemax's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SYX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SYX's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

SYX

1.1%

US Trade Distributors

2.1%

US Market


1 Year Return

35.6%

SYX

19.5%

US Trade Distributors

19.8%

US Market

Return vs Industry: SYX exceeded the US Trade Distributors industry which returned 19.4% over the past year.

Return vs Market: SYX exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

SYXIndustryMarket
7 Day3.4%1.1%2.1%
30 Day27.0%20.1%8.1%
90 Day42.2%14.2%6.0%
1 Year46.4%35.6%21.8%19.5%22.5%19.8%
3 Year55.9%2.8%35.7%29.3%46.5%36.8%
5 Year423.4%234.3%91.5%77.8%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Systemax's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Systemax undervalued compared to its fair value and its price relative to the market?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYX ($31.36) is trading below our estimate of fair value ($32.77)

Significantly Below Fair Value: SYX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SYX is good value based on its PE Ratio (20x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: SYX is poor value based on its PE Ratio (20x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SYX is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SYX is overvalued based on its PB Ratio (7x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Systemax forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYX's forecast earnings growth (14.1% per year) is above the savings rate (2.2%).

Earnings vs Market: SYX's earnings (14.1% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: SYX's earnings are forecast to grow, but not significantly.

Revenue vs Market: SYX's revenue (6.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SYX's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYX's Return on Equity is forecast to be high in 3 years time (31%)


Next Steps

Past Performance

How has Systemax performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYX has high quality earnings.

Growing Profit Margin: SYX's current net profit margins (6%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: SYX has become profitable over the past 5 years, growing earnings by 43.2% per year.

Accelerating Growth: SYX's earnings growth over the past year (16.1%) is below its 5-year average (43.2% per year).

Earnings vs Industry: SYX earnings growth over the past year (16.1%) exceeded the Trade Distributors industry -6.9%.


Return on Equity

High ROE: SYX's Return on Equity (35.2%) is considered high.


Next Steps

Financial Health

How is Systemax's financial position?


Financial Position Analysis

Short Term Liabilities: SYX's short term assets ($332.0M) exceed its short term liabilities ($190.2M).

Long Term Liabilities: SYX's short term assets ($332.0M) exceed its long term liabilities ($84.4M).


Debt to Equity History and Analysis

Debt Level: SYX is debt free.

Reducing Debt: SYX has not had any debt for past 5 years.

Debt Coverage: SYX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SYX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Systemax current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYX's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SYX's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SYX has been paying a dividend for less than 10 years.

Growing Dividend: SYX's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), SYX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Barry Litwin (53 yo)

1.83yrs

Tenure

US$4,107,300

Compensation

Mr. Barry Litwin is Chief Executive Officer at Systemax Inc., since January 7, 2019 and its Director since July 2017. Mr. Litwin serves as Senior Vice President of Marketing at Newark Corporation. Mr. Litw...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD4.11M) is above average for companies of similar size in the US market ($USD2.56M).

Compensation vs Earnings: Barry's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Leeds
Executive Chairman4.67yrsUS$980.00k38.83%
$ 455.6m
Barry Litwin
CEO & Director1.83yrsUS$4.11m0.014%
$ 159.9k
Bruce Leeds
Vice Chairman & Executive Officer25.58yrsUS$980.00k9.62%
$ 112.9m
Robert Leeds
Vice Chairman & Executive Officer25.58yrsUS$980.00k8.71%
$ 102.2m
Thomas Clark
Senior VP & CFO4.08yrsUS$1.24m0.050%
$ 585.3k
Manoj Shetty
Senior VP & Chief Information Officer6.25yrsUS$1.21m0.0095%
$ 111.6k
Eric Lerner
Senior VP & General Counsel8.5yrsUS$1.52m0.011%
$ 130.0k
Robert Dooley
President of Industrial Products Group30.83yrsUS$1.92m0.21%
$ 2.4m
Ritesh Chaturbedi
Senior VP & COO1.83yrsno data0.0065%
$ 75.8k
Klaus Werner
Senior VP & Chief Marketing Officer0.75yrno datano data
Donna Fielding
Senior VP & Chief Human Resources Officer2.83yrsno data0.0013%
$ 15.1k
Norman Kough
Executive Vice President of Netherlands & Sweden3.83yrsno datano data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: SYX's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Leeds
Executive Chairman4.67yrsUS$980.00k38.83%
$ 455.6m
Barry Litwin
CEO & Director1.83yrsUS$4.11m0.014%
$ 159.9k
Bruce Leeds
Vice Chairman & Executive Officer25.58yrsUS$980.00k9.62%
$ 112.9m
Robert Leeds
Vice Chairman & Executive Officer25.58yrsUS$980.00k8.71%
$ 102.2m
Chad Lindbloom
Independent Director2.92yrsUS$148.80k0.0018%
$ 21.4k
Lawrence Reinhold
Director11.67yrsUS$3.11m0.10%
$ 1.2m
Robert Rosenthal
Lead Independent Director14.08yrsUS$160.90k0.19%
$ 2.2m
Paul Pearlman
Independent Director1.83yrsUS$105.85kno data

8.2yrs

Average Tenure

62yo

Average Age

Experienced Board: SYX's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SYX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Systemax Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Systemax Inc.
  • Ticker: SYX
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$1.173b
  • Shares outstanding: 37.41m
  • Website: https://www.systemax.com

Number of Employees


Location

  • Systemax Inc.
  • 11 Harbor Park Drive
  • Port Washington
  • New York
  • 11050
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYXNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1995

Biography

Systemax Inc., through its subsidiaries, operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. It sells a range of maintenance, repa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:26
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.