NasdaqGS:SYKE

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 21.3% below its fair value

Earnings are forecast to grow 17.84% per year

Earnings grew by 31% over the past year

Risk Analysis

No risks detected for SYKE from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


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

-12.5%

SYKE

-12.1%

US IT

-10.6%

US Market


1 Year Return

3.9%

SYKE

16.7%

US IT

5.2%

US Market

Return vs Industry: SYKE underperformed the US IT industry which returned 16.7% over the past year.

Return vs Market: SYKE underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

SYKEIndustryMarket
7 Day-12.5%-12.1%-10.6%
30 Day-9.2%-9.0%-8.5%
90 Day-11.2%-2.0%-4.6%
1 Year3.9%3.9%17.9%16.7%7.4%5.2%
3 Year12.0%12.0%82.2%74.4%31.7%23.2%
5 Year34.3%34.3%119.6%100.4%56.4%39.3%

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?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYKE ($31.2) is trading below our estimate of fair value ($39.63)

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


Price To Earnings Ratio

PE vs Industry: SYKE is good value based on its PE Ratio (20.3x) compared to the IT industry average (29.4x).

PE vs Market: SYKE is poor value based on its PE Ratio (20.3x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: SYKE is poor value based on its PEG Ratio (1.1x)


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 (3.9x).


Next Steps

Future Growth

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

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYKE's forecast earnings growth (17.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SYKE's earnings (17.8% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: SYKE's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SYKE's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYKE's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Sykes Enterprises performed over the past 5 years?

-9.1%

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%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SYKE's earnings have declined by -9.1% per year over the past 5 years.

Accelerating Growth: SYKE's earnings growth over the past year (31%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: SYKE earnings growth over the past year (31%) exceeded the IT industry 12%.


Return on Equity

High ROE: SYKE's Return on Equity (7.3%) 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 ($558.8M) exceed its short term liabilities ($253.6M).

Long Term Liabilities: SYKE's short term assets ($558.8M) exceed its long term liabilities ($287.4M).


Debt to Equity History and Analysis

Debt Level: SYKE's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: SYKE's debt to equity ratio has reduced from 11.4% to 8.1% over the past 5 years.

Debt Coverage: SYKE's debt is well covered by operating cash flow (165%).

Interest Coverage: SYKE's interest payments on its debt are well covered by EBIT (23.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SYKE's debt is covered by short term assets (assets are 7.9x debt).


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 payouts.

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

7.4yrs

Average management tenure


CEO

Chuck Sykes (56yo)

15.5yrs

Tenure

US$4,345,895

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 ($USD4.35M) is about average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Sykes
President15.5yrsUS$4.35m0.96% $12.4m
John Chapman
Chief Finance Officer5.8yrsUS$1.54m0.10% $1.3m
James Holder
Chief Legal Officer & Corporate Secretary19.2yrsUS$926.33k0.056% $726.4k
Lawrence Zingale
Chief Customer Officer & GM of EMEA7.4yrsUS$1.57m0.15% $1.9m
James Farnsworth
Executive Vice President of Americas Business Development3.3yrsUS$880.73k0.0026% $33.4k
David Pearson
Chief Information Officer15.5yrsUS$834.84k0.17% $2.2m
Subhaash Kumar
Global Vice President of Finance & Investor Relations0yrsno datano data
Ian Barkin
Chief Strategy & Marketing Officer1.1yrsno datano data
Jenna Nelson
Chief Human Resources Officer9.8yrsno data0.018% $230.1k
Victoria Georgalakis
MD & Senior VP of Global Region - EMEA2.9yrsno datano data

7.4yrs

Average Tenure

56yo

Average Age

Experienced Management: SYKE's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Sykes
President15.5yrsUS$4.35m0.96% $12.4m
Mark Bozek
Director0.8yrsUS$14.38k0.011% $147.4k
William Meurer
Independent Director19.3yrsUS$198.81k0.18% $2.3m
William Muir
Independent Director5.8yrsUS$191.88k0.060% $771.9k
Vanessa C. Chang
Independent Director3.9yrsUS$203.03k0.039% $502.5k
Carlos Evans
Independent Director3.8yrsUS$188.96k0.039% $500.9k
James MacLeod
Non-Executive Chairman3.8yrsUS$274.98k0.10% $1.4m
Lorraine Lutton
Independent Director5.8yrsUS$190.57k0.062% $800.1k
William Watson
Independent Director1.8yrsUS$225.64k0.022% $280.5k

3.9yrs

Average Tenure

66yo

Average Age

Experienced Board: SYKE's board of directors are considered experienced (3.9 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.


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$1.293b
  • Shares outstanding: 41.43m
  • 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 global customer engagement services. Its customer care services include handling billing inquiries and claims, activating customer accounts, resolving complaints, cross-selling/up-selling, and prequalifying and warranty management, as well as providing health information and dispatching roadside assistance. The company’s technical support services comprise support around complex networks, hardware and software, communications equipment, Internet access technology, and Internet portal usage. It also provides customer acquisition services, which focuses around digital marketing, multichannel demand generation, and inbound up-selling and sales conversion, as well as outbound selling of its clients’ products and services. In addition, the company offers technical staffing and outsourced corporate help desk services; and fulfillment services, such as order and payment processing, inventory control, product delivery, and product returns handling, as well as consulting, implementation, hosting, and managed services that optimize its differentiated full lifecycle management services platform. The company offers its services through phone, email, social media, text messaging, chat, and digital self-service support. Sykes Enterprises, Incorporated provides its services to corporations, medium-sized businesses, and public institutions in the financial services, communications, technology, transportation and leisure, healthcare, and other industries. It operates in the United States, Canada, Latin America, Australia, the Asia Pacific Rim, Europe, the Middle East, and Africa. Sykes Enterprises, Incorporated was founded in 1977 and is headquartered in Tampa, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:06
End of Day Share Price2020/02/27 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.