NasdaqGS:SYKE

Stock Analysis Report

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Executive Summary

Sykes Enterprises, Incorporated, together with its subsidiaries, provides multichannel demand generation and customer engagement solutions and services. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SYKE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

SYKE

-2.3%

US IT

-3.1%

US Market


1 Year Return

6.7%

SYKE

22.4%

US IT

12.7%

US Market

Return vs Industry: SYKE underperformed the US IT industry which returned 22.4% over the past year.

Return vs Market: SYKE underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

SYKEIndustryMarket
7 Day-0.9%-2.3%-3.1%
30 Day-4.1%-3.0%-2.9%
90 Day24.4%7.9%8.2%
1 Year6.7%6.7%23.7%22.4%15.3%12.7%
3 Year12.9%12.9%94.8%87.1%37.8%28.5%
5 Year29.3%29.3%169.2%147.0%90.9%69.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SYKE ($32.96) is trading above our estimate of fair value ($26.87)

Significantly Below Fair Value: SYKE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYKE is good value based on its PE Ratio (17.5x) compared to the US IT industry average (31.1x).

PE vs Market: SYKE is good value based on its PE Ratio (17.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SYKE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SYKE is good value based on its PB Ratio (1.5x) compared to the US IT industry average (3.6x).


Next Steps

Future Growth

How is Sykes Enterprises forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYKE's forecast earnings growth (14.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SYKE's earnings (14.9% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: SYKE's revenue (3.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SYKE's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sykes Enterprises performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYKE has high quality earnings.

Growing Profit Margin: SYKE's current net profit margins (4.7%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: SYKE's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: SYKE's earnings growth over the past year (43.6%) exceeds its 5-year average (-4.8% per year).

Earnings vs Industry: SYKE earnings growth over the past year (43.6%) exceeded the IT industry 8.6%.


Return on Equity

High ROE: SYKE's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Sykes Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: SYKE's short term assets ($552.1M) exceed its short term liabilities ($260.0M).

Long Term Liabilities: SYKE's short term assets ($552.1M) exceed its long term liabilities ($247.0M).


Debt to Equity History and Analysis

Debt Level: SYKE's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: SYKE's debt to equity ratio has reduced from 9.9% to 5.7% over the past 5 years.

Debt Coverage: SYKE's debt is well covered by operating cash flow (268.5%).

Interest Coverage: SYKE's interest payments on its debt are well covered by EBIT (47.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SYKE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SYKE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SYKE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SYKE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SYKE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Chuck Sykes (57 yo)

16.08yrs

Tenure

US$4,431,520

Compensation

Mr. Charles E. Sykes, also known as Chuck, has been the President and Chief Executive Officer of Sykes Enterprises, Incorporated since August 2, 2004. Mr. Sykes joined Sykes Enterprises in 1986. He served ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD4.43M) is about average for companies of similar size in the US market ($USD4.64M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Sykes
President16.08yrsUS$4.43m1.06%
$ 13.9m
John Chapman
Executive VP & CFO6.42yrsUS$1.61m0.10%
$ 1.4m
David Pearson
Executive VP & Chief Information Officer16.08yrsUS$909.03k0.18%
$ 2.4m
James Holder
Executive VP19.75yrsUS$984.68k0.058%
$ 765.3k
Lawrence Zingale
Chief Customer Officer & GM of EMEA8yrsUS$1.81m0.17%
$ 2.2m
Kenneth Juarez
Senior Vice President of Operations0.67yrno datano data
Subhaash Kumar
Global Vice President of Finance & Investor Relationsno datano datano data
Ian Barkin
Chief Strategy & Marketing Officer1.67yrsno datano data
Jenna Nelson
Chief Human Resources Officer10.33yrsno data0.026%
$ 346.3k
James Farnsworth
Executive Vice President of Americas Business Development3.83yrsUS$880.73k0.0027%
$ 35.3k
Victoria Georgalakis
MD & Senior VP of Global Region - EMEA3.5yrsno datano data
Michael Henderson
Chief Operating Officer of NA & APAC3.5yrsno datano data

6.4yrs

Average Tenure

57yo

Average Age

Experienced Management: SYKE's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Sykes
President16.08yrsUS$4.43m1.06%
$ 13.9m
Mark Bozek
Independent Director1.33yrsUS$223.73k0.018%
$ 234.6k
William Meurer
Independent Director19.92yrsUS$197.49k0.19%
$ 2.5m
William Muir
Independent Director6.33yrsUS$192.49k0.067%
$ 881.5k
Vanessa C. Chang
Independent Director4.5yrsUS$223.35k0.045%
$ 596.7k
Carlos Evans
Independent Director4.33yrsUS$189.99k0.045%
$ 595.2k
James MacLeod
Independent Non-Executive Chairman4.33yrsUS$269.99k0.11%
$ 1.4m
Lorraine Lutton
Independent Director6.33yrsUS$194.99k0.069%
$ 911.1k
William Watson
Independent Director2.33yrsUS$187.49k0.021%
$ 275.3k

4.5yrs

Average Tenure

67yo

Average Age

Experienced Board: SYKE's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SYKE 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

Sykes Enterprises, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sykes Enterprises, Incorporated
  • Ticker: SYKE
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.316b
  • Shares outstanding: 39.92m
  • Website: https://www.sykes.com

Number of Employees


Location

  • Sykes Enterprises, Incorporated
  • 400 North Ashley Drive
  • Suite 2800
  • Tampa
  • Florida
  • 33602
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYKENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1996
SZYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1996

Biography

Sykes Enterprises, Incorporated, together with its subsidiaries, provides multichannel demand generation and customer engagement solutions and services. The company’s customer care services include handlin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 05:34
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
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.