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

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

2.1%

SYX

5.2%

US Trade Distributors

1.0%

US Market


1 Year Return

-21.0%

SYX

-0.002%

US Trade Distributors

6.7%

US Market

Return vs Industry: SYX underperformed the US Trade Distributors industry which returned -0% over the past year.

Return vs Market: SYX underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SYXIndustryMarket
7 Day2.1%5.2%1.0%
30 Day-1.7%-2.0%-1.8%
90 Day3.7%1.8%-1.8%
1 Year1.5%-21.0%1.8%-0.002%9.1%6.7%
3 Year304.1%181.9%42.1%36.0%46.1%36.6%
5 Year133.5%61.9%34.5%24.8%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SYX ($22.55) is trading below our estimate of fair value ($36.8)

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


Price Based on Earnings

PE vs Industry: SYX is good value based on its PE Ratio (16.1x) compared to the Trade Distributors industry average (16.1x).

PE vs Market: SYX is good value based on its PE Ratio (16.1x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: SYX is overvalued based on its PB Ratio (5.4x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SYX's forecast earnings growth (11.1% per year) is above the savings rate (2.7%).

Earnings vs Market: SYX's earnings (11.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SYX's revenue (6.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SYX's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SYX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Systemax performed over the past 5 years?

66.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SYX has become profitable over the past 5 years, growing earnings by 66.1% per year.

Accelerating Growth: SYX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SYX had negative earnings growth (-20.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (0.9%).


Return on Equity

High ROE: SYX's Return on Equity (33.5%) is considered high.


Return on Assets

ROA vs Industry: SYX has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: SYX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Systemax's financial position?


Financial Position Analysis

Short Term Liabilities: SYX's short term assets ($293.1M) exceeds its short term liabilities ($167.9M)

Long Term Liabilities: SYX's short term assets (293.1M) exceeds its long term liabilities (65.5M)


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

Inventory Level: SYX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SYX's debt is covered by short term assets.


Next Steps

  • Explore more healthy companies in the Capital Goods industry.

Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SYX's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SYX's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), 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

What is the CEO of Systemax's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Barry Litwin (52yo)

0.8yrs

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 ...


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: SYX's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

61yo

Average Age

Experienced Board: SYX's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Richard Leeds (59yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$990.90k
  • Bob Dooley (65yo)

    President of Industrial Products Group

    • Tenure: 29.8yrs
    • Compensation: US$1.33m
  • Manoj Shetty (58yo)

    Senior VP & Chief Information Officer

    • Tenure: 5.2yrs
  • Eric Lerner (61yo)

    Senior VP & General Counsel

    • Tenure: 7.4yrs
    • Compensation: US$1.06m
  • Barry Litwin (52yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$114.34k
  • Ritesh Chaturbedi (41yo)

    Senior VP & COO

    • Tenure: 0.8yrs
  • Tex Clark (37yo)

    VP & CFO

    • Tenure: 3yrs
    • Compensation: US$634.80k
  • Jacques Thefo

    Executive Vice President of France

    • Tenure: 2.6yrs
  • Norman Kough

    Executive Vice President of Netherlands & Sweden

    • Tenure: 2.8yrs
  • Donna Fielding (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.8yrs

Board Members

  • Richard Leeds (59yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$990.90k
  • Bruce Leeds (63yo)

    Vice Chairman

    • Tenure: 24.5yrs
    • Compensation: US$984.70k
  • Robert Leeds (63yo)

    Vice Chairman

    • Tenure: 24.5yrs
    • Compensation: US$986.20k
  • Chad Lindbloom (54yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$117.52k
  • Larry Reinhold (59yo)

    Director

    • Tenure: 10.6yrs
    • Compensation: US$1.07m
  • Bob Rosenthal (70yo)

    Lead Independent Director

    • Tenure: 13yrs
    • Compensation: US$155.09k
  • Paul Pearlman (65yo)

    Independent Director

    • Tenure: 0.8yrs
  • Barry Litwin (52yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$114.34k

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$845.306m
  • Shares outstanding: 37.49m
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:36
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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