NYSE:SYX

Stock Analysis Report

Executive Summary

Systemax Inc. operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America.


Snowflake Analysis

Flawless balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.5%

SYX

12.9%

US Trade Distributors

9.4%

US Market


1 Year Return

-25.2%

SYX

-20.0%

US Trade Distributors

-6.8%

US Market

Return vs Industry: SYX underperformed the US Trade Distributors industry which returned -20% over the past year.

Return vs Market: SYX underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

SYXIndustryMarket
7 Day8.5%12.9%9.4%
30 Day-2.1%-8.1%-3.9%
90 Day-30.0%-28.0%-16.5%
1 Year-19.4%-25.2%-18.5%-20.0%-4.8%-6.8%
3 Year124.2%48.5%-4.8%-9.2%23.4%15.2%
5 Year158.4%68.0%6.9%-1.1%41.3%25.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYX ($17.34) is trading below our estimate of fair value ($42.31)

Significantly Below Fair Value: SYX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SYX is poor value based on its PE Ratio (13x) compared to the Trade Distributors industry average (11.8x).

PE vs Market: SYX is good value based on its PE Ratio (13x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: SYX is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: SYX is overvalued based on its PB Ratio (3.7x) compared to the US Trade Distributors industry average (1x).


Next Steps

Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYX's forecast earnings growth (3.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SYX's earnings (3.8% per year) are forecast to grow slower than the US market (11.4% per year).

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

Revenue vs Market: SYX's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: SYX's revenue is forecast to decline over the next 3 years (-0.6% 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 (28.6%)


Next Steps

Past Performance

How has Systemax performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYX has high quality earnings.

Growing Profit Margin: SYX's current net profit margins (5.3%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: SYX has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: SYX's earnings growth over the past year (1%) is below its 5-year average (60.8% per year).

Earnings vs Industry: SYX earnings growth over the past year (1%) underperformed the Trade Distributors industry 5.1%.


Return on Equity

High ROE: SYX's Return on Equity (28.5%) is considered high.


Next Steps

Financial Health

How is Systemax's financial position?


Financial Position Analysis

Short Term Liabilities: SYX's short term assets ($304.3M) exceed its short term liabilities ($159.8M).

Long Term Liabilities: SYX's short term assets ($304.3M) exceed its long term liabilities ($61.6M).


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's current dividend yield, its reliability and sustainability?

3.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYX's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: SYX's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (5.12%).


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 (36%), 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?

3.5yrs

Average management tenure


CEO

Barry Litwin (52yo)

1.25s

Tenure

US$114,340

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Richard Leeds
Executive Chairman4.08yrsUS$990.90k35.09% $229.7m
Barry Litwin
CEO & Director1.25yrsUS$114.34k0.013% $88.4k
Thomas Clark
VP & CFO3.5yrsUS$634.80k0.048% $316.2k
Robert Dooley
President of Industrial Products Group30.25yrsUS$1.33m0.20% $1.3m
Ritesh Chaturbedi
Senior VP & COO1.25yrsno data0.0047% $30.8k
Manoj Shetty
Senior VP & Chief Information Officer5.67yrsno data0.0077% $50.7k
Eric Lerner
Senior VP & General Counsel7.92yrsUS$1.06m0.044% $287.6k
Donna Fielding
Senior VP & Chief Human Resources Officer2.25yrsno data0.0052% $34.3k
Norman Kough
Executive Vice President of Netherlands & Sweden3.25yrsno datano data
Thomas Axmacher
VP & Controller13.5yrsno data0.0035% $22.9k

3.5yrs

Average Tenure

58yo

Average Age

Experienced Management: SYX's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Leeds
Executive Chairman4.08yrsUS$990.90k35.09% $229.7m
Barry Litwin
CEO & Director1.25yrsUS$114.34k0.013% $88.4k
Bruce Leeds
Vice Chairman25yrsUS$984.70k12.3% $80.5m
Robert Leeds
Vice Chairman25yrsUS$986.20k12.32% $80.7m
Chad Lindbloom
Independent Director2.33yrsUS$117.52kno data
Lawrence Reinhold
Director11.08yrsUS$1.07m0.42% $2.7m
Robert Rosenthal
Lead Independent Director13.5yrsUS$155.09k0.19% $1.2m
Paul Pearlman
Independent Director1.25yrsno datano data

7.6yrs

Average Tenure

61yo

Average Age

Experienced Board: SYX's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$654.633m
  • Shares outstanding: 37.75m
  • 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. 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, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance products, furniture and office products, workbenches and shop desks, HVAC/R and fans, safety and security products, outdoor and grounds maintenance products, tools and instruments, and office and school supplies. The company also sells plumbing products and pumps, packaging products and supplies, electrical and lighting products, food service products and appliances, raw materials and building supplies, motors and power transmission, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance products, and fasteners and hardware. It offers its products under the Global, GlobalIndustrial.com, Nexel Paramount, and Interion brand names. The company offers its products to for-profit businesses, educational organizations, and government entities through its relationship marketers, catalog mailings, and e-commerce sites. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:12
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.