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Sykes Enterprises

Nasdaq:SYKE
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SYKE
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Sykes Enterprises, Incorporated, together with its subsidiaries, provides multichannel demand generation and global customer engagement services. The last earnings update was 50 days ago. More info.


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SYKE Share Price and Events
7 Day Returns
-2%
NasdaqGS:SYKE
-0.9%
US IT
-0.4%
US Market
1 Year Returns
-7.1%
NasdaqGS:SYKE
24.7%
US IT
4.3%
US Market
SYKE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sykes Enterprises (SYKE) -2% 4.9% -6.4% -7.1% -4.7% 20%
US IT -0.9% 3.8% 8.4% 24.7% 95.5% 106.9%
US Market -0.4% 2.8% 2.7% 4.3% 40.9% 38.2%
1 Year Return vs Industry and Market
  • SYKE underperformed the IT industry which returned 24.7% over the past year.
  • SYKE underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
SYKE
Industry
5yr Volatility vs Market

SYKE Value

 Is Sykes Enterprises undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sykes Enterprises to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sykes Enterprises.

NasdaqGS:SYKE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SYKE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.01 (1 + (1- 21%) (28.82%))
1.161
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.161 * 5.96%)
9.65%

Discounted Cash Flow Calculation for NasdaqGS:SYKE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sykes Enterprises is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SYKE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.65%)
2019 81.40 Analyst x2 74.23
2020 84.29 Analyst x2 70.11
2021 87.03 Est @ 3.26% 66.02
2022 89.73 Est @ 3.1% 62.07
2023 92.41 Est @ 2.99% 58.30
2024 95.10 Est @ 2.91% 54.72
2025 97.82 Est @ 2.86% 51.33
2026 100.58 Est @ 2.82% 48.13
2027 103.38 Est @ 2.79% 45.12
2028 106.25 Est @ 2.77% 42.29
Present value of next 10 years cash flows $572.34
NasdaqGS:SYKE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $106.25 × (1 + 2.73%) ÷ (9.65% – 2.73%)
$1,577.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,577.49 ÷ (1 + 9.65%)10
$627.92
NasdaqGS:SYKE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $572.34 + $627.92
$1,200.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,200.26 / 42.43
$28.29
NasdaqGS:SYKE Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.29
Current discount Discount to share price of $26.55
= -1 x ($26.55 - $28.29) / $28.29
6.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sykes Enterprises is available for.
Intrinsic value
6%
Share price is $26.55 vs Future cash flow value of $28.29
Current Discount Checks
For Sykes Enterprises to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sykes Enterprises's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Sykes Enterprises's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sykes Enterprises's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sykes Enterprises's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SYKE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.18
NasdaqGS:SYKE Share Price ** NasdaqGS (2019-06-26) in USD $26.55
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 35.28x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sykes Enterprises.

NasdaqGS:SYKE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SYKE Share Price ÷ EPS (both in USD)

= 26.55 ÷ 1.18

22.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sykes Enterprises is good value based on earnings compared to the US IT industry average.
  • Sykes Enterprises is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Sykes Enterprises's expected growth come at a high price?
Raw Data
NasdaqGS:SYKE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
29.5%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.51x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NasdaqGS:SYKE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.53x ÷ 29.5%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sykes Enterprises is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sykes Enterprises's assets?
Raw Data
NasdaqGS:SYKE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $19.84
NasdaqGS:SYKE Share Price * NasdaqGS (2019-06-26) in USD $26.55
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.09x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.78x
NasdaqGS:SYKE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SYKE Share Price ÷ Book Value per Share (both in USD)

= 26.55 ÷ 19.84

1.34x

* Primary Listing of Sykes Enterprises.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sykes Enterprises is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Sykes Enterprises's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Sykes Enterprises has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SYKE Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sykes Enterprises expected to grow at an attractive rate?
  • Sykes Enterprises's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Sykes Enterprises's earnings growth is expected to exceed the United States of America market average.
  • Sykes Enterprises's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SYKE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SYKE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 29.5%
NasdaqGS:SYKE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.5%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SYKE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SYKE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,717 130 87 4
2019-12-31 1,661 125 68 4
NasdaqGS:SYKE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,614 120 50
2018-12-31 1,626 109 49
2018-09-30 1,630 106 15
2018-06-30 1,638 111 23
2018-03-31 1,616 126 24
2017-12-31 1,586 135 32
2017-09-30 1,556 146 67
2017-06-30 1,534 138 67
2017-03-31 1,523 143 67
2016-12-31 1,460 133 62
2016-09-30 1,408 131 64
2016-06-30 1,340 130 63

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sykes Enterprises's earnings are expected to grow significantly at over 20% yearly.
  • Sykes Enterprises's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SYKE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Sykes Enterprises Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SYKE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.05 2.34 1.77 4.00
2019-12-31 1.60 1.65 1.54 4.00
NasdaqGS:SYKE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.18
2018-12-31 1.16
2018-09-30 0.35
2018-06-30 0.54
2018-03-31 0.58
2017-12-31 0.77
2017-09-30 1.61
2017-06-30 1.60
2017-03-31 1.61
2016-12-31 1.49
2016-09-30 1.54
2016-06-30 1.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sykes Enterprises will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sykes Enterprises's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sykes Enterprises has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SYKE Past Performance

  How has Sykes Enterprises performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sykes Enterprises's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sykes Enterprises's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Sykes Enterprises's 1-year earnings growth exceeds its 5-year average (103.1% vs -7.8%)
  • Sykes Enterprises's earnings growth has exceeded the US IT industry average in the past year (103.1% vs 8.5%).
Earnings and Revenue History
Sykes Enterprises's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sykes Enterprises Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SYKE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,614.24 49.67 443.81
2018-12-31 1,625.69 48.93 440.43
2018-09-30 1,629.74 14.84 433.13
2018-06-30 1,637.71 22.79 439.79
2018-03-31 1,616.37 24.45 423.70
2017-12-31 1,586.01 32.22 413.59
2017-09-30 1,555.91 67.28 403.88
2017-06-30 1,534.34 66.86 383.98
2017-03-31 1,523.31 67.15 400.65
2016-12-31 1,460.04 62.39 377.41
2016-09-30 1,408.17 64.40 358.65
2016-06-30 1,340.35 63.14 331.46
2016-03-31 1,283.40 66.91 304.74
2015-12-31 1,286.34 68.60 298.78
2015-09-30 1,298.99 71.06 295.42
2015-06-30 1,313.73 67.69 296.25
2015-03-31 1,326.78 63.12 297.79
2014-12-31 1,327.52 57.79 298.44
2014-09-30 1,312.94 46.29 294.21
2014-06-30 1,302.41 43.80 294.27
2014-03-31 1,286.65 41.06 295.32
2013-12-31 1,263.46 37.26 295.67
2013-09-30 1,232.39 39.55 295.22
2013-06-30 1,190.78 33.55 292.51
2013-03-31 1,150.84 35.70 286.25
2012-12-31 1,127.70 39.95 283.81
2012-09-30 1,099.66 32.62 293.49
2012-06-30 1,112.44 43.35 304.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sykes Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sykes Enterprises used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Sykes Enterprises's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sykes Enterprises's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sykes Enterprises has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SYKE Health

 How is Sykes Enterprises's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sykes Enterprises's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sykes Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sykes Enterprises's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sykes Enterprises's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sykes Enterprises Company Filings, last reported 2 months ago.

NasdaqGS:SYKE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 842.04 93.00 148.24
2018-12-31 826.61 102.00 128.70
2018-09-30 811.84 82.00 157.27
2018-06-30 800.86 90.00 162.42
2018-03-31 806.15 100.00 172.59
2017-12-31 796.48 275.00 343.73
2017-09-30 802.45 267.00 328.17
2017-06-30 770.18 267.00 301.45
2017-03-31 746.52 267.00 286.83
2016-12-31 724.52 267.00 266.68
2016-09-30 726.09 272.00 283.32
2016-06-30 708.89 272.00 273.21
2016-03-31 706.74 70.00 259.89
2015-12-31 678.68 70.00 235.36
2015-09-30 662.76 70.00 226.69
2015-06-30 660.77 65.00 222.35
2015-03-31 647.93 74.00 214.06
2014-12-31 658.22 75.00 215.14
2014-09-30 650.31 79.00 209.61
2014-06-30 652.34 79.00 204.50
2014-03-31 635.55 96.00 210.50
2013-12-31 635.70 98.00 211.99
2013-09-30 625.22 105.00 196.74
2013-06-30 603.76 113.00 167.41
2013-03-31 609.84 111.00 177.80
2012-12-31 606.26 91.00 187.32
2012-09-30 591.59 98.00 176.57
2012-06-30 578.22 0.00 204.67
  • Sykes Enterprises's level of debt (11%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (15.1% vs 11% today).
  • Debt is well covered by operating cash flow (128.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.5x coverage).
X
Financial health checks
We assess Sykes Enterprises's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sykes Enterprises has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SYKE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sykes Enterprises dividends.
If you bought $2,000 of Sykes Enterprises shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sykes Enterprises's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sykes Enterprises's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SYKE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SYKE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sykes Enterprises has not reported any payouts.
  • Unable to verify if Sykes Enterprises's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sykes Enterprises's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sykes Enterprises has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sykes Enterprises's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sykes Enterprises afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sykes Enterprises has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SYKE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Sykes
COMPENSATION $4,345,895
AGE 55
TENURE AS CEO 14.8 years
CEO Bio

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 as the Chief Operating Officer of Sykes Enterprises, Incorporated. since July 2003 until August 2004 and served as its President and Chief Operating Officer of Global Operations since July 3, 2003. Mr. Sykes was appointed as Vice President of Sales, North America in 1999 and between the years of 2000 to 2003 served as Group Executive, Senior Vice President of Marketing and Global Alliances, and Senior Vice President of Global Operations. He served as Senior Vice President of Americas Division and General Manager of Sykes Enterprises, Incorporated. from June 2001 to July 3, 2003, where he served as Senior Vice President of Marketing from March 2000 to June 2001. From December 1996 to March 2000, he served as Vice President of Sales and held the position of Regional Manager of the Midwest Region for Professional Services from 1992 to 1996. He has almost two decades of experience at SYKES in all aspects of the business, including operations support, sales and marketing. Mr. Sykes has also played a key role in the recent growth and strategic development of Sykes Enterprises, Incorporated's offshore operations, including Costa Rica, the Philippines and India. He has been Executive Director of Sykes Enterprises, Incorporated since August 2, 2004. He currently serves on the boards of the Greater Tampa Chamber of Commerce, the Tampa Bay Partnership, the Tampa Bay Metro Board of the American Heart Association, Feeding America of Tampa Bay, Inc., Junior Achievement of Tampa Bay, and the Board of Visitors for North Carolina State University, and is a member of the Florida Council of 100. Mr. Sykes is a graduate of North Carolina State University where he earned a Bachelor of Science in Mechanical Engineering in 1985.

CEO Compensation
  • Chuck's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sykes Enterprises management team in years:

6.8
Average Tenure
55
Average Age
  • The average tenure for the Sykes Enterprises management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chuck Sykes

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
14.8 yrs

John Chapman

TITLE
Chief Finance Officer
COMPENSATION
$2M
AGE
51
TENURE
5.2 yrs

Jim Holder

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$926K
AGE
59
TENURE
18.5 yrs

Lance Zingale

TITLE
Chief Customer Officer & GM of EMEA
COMPENSATION
$2M
AGE
62
TENURE
6.8 yrs

Jim Farnsworth

TITLE
Executive Vice President of Americas Business Development
COMPENSATION
$881K
AGE
52
TENURE
2.6 yrs

Dave Pearson

TITLE
Chief Information Officer
COMPENSATION
$835K
AGE
59
TENURE
14.8 yrs

Subhaash Kumar

TITLE
Global Vice President of Finance & Investor Relations

Ian Barkin

TITLE
Chief Strategy & Marketing Officer
TENURE
0.4 yrs

Jenna Nelson

TITLE
Chief Human Resources Officer
AGE
54
TENURE
9.1 yrs

Eileen Canady

TITLE
Senior Vice President of Global Marketing
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Sykes Enterprises board of directors in years:

3.3
Average Tenure
65
Average Age
  • The tenure for the Sykes Enterprises board of directors is about average.
Board of Directors

Jim MacLeod

TITLE
Non-Executive Chairman
COMPENSATION
$275K
AGE
70
TENURE
3.1 yrs

Chuck Sykes

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
14.8 yrs

William Meurer

TITLE
Director
COMPENSATION
$199K
AGE
74
TENURE
18.7 yrs

Bill Muir

TITLE
Director
COMPENSATION
$192K
AGE
50
TENURE
5.1 yrs

Vanessa C. Chang

TITLE
Director
COMPENSATION
$203K
AGE
65
TENURE
3.3 yrs

Carlos Evans

TITLE
Director
COMPENSATION
$189K
AGE
66
TENURE
3.1 yrs

Mark Bozek

TITLE
Director
COMPENSATION
$14K
AGE
58
TENURE
0.1 yrs

Lorraine Lutton

TITLE
Director
COMPENSATION
$191K
AGE
52
TENURE
5.1 yrs

William Watson

TITLE
Director
COMPENSATION
$226K
AGE
68
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Mar 19 Sell Jenna Nelson Individual 01. Mar 19 01. Mar 19 -12,800 $29.99 $-383,821
03. Dec 18 Sell James Holder Individual 30. Nov 18 30. Nov 18 -2,500 $27.31 $-68,266
29. Aug 18 Sell James Holder Individual 28. Aug 18 28. Aug 18 -8,300 $30.05 $-249,418
X
Management checks
We assess Sykes Enterprises's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sykes Enterprises has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SYKE News

Simply Wall St News

Is Sykes Enterprises, Incorporated (NASDAQ:SYKE) A Volatile Stock?

If you're interested in Sykes Enterprises, Incorporated (NASDAQ:SYKE), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … What this means for you: Since Sykes Enterprises is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments.

Simply Wall St -

If You Had Bought Sykes Enterprises (NASDAQ:SYKE) Shares Five Years Ago You'd Have Made 19%

While Sykes Enterprises, Incorporated (NASDAQ:SYKE) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 17% in the last quarter. … View our latest analysis for Sykes Enterprises While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During five years of share price growth, Sykes Enterprises achieved compound earnings per share (EPS) growth of 4.2% per year.

Simply Wall St -

Should You Worry About Sykes Enterprises, Incorporated’s (NASDAQ:SYKE) ROCE?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sykes Enterprises: 0.081 = US$94m ÷ (US$1.4b - US$235m) (Based on the trailing twelve months to March 2019.) So, Sykes Enterprises has an ROCE of 8.1%. … What Are Current Liabilities, And How Do They Affect Sykes Enterprises's ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Have Insiders Been Selling Sykes Enterprises, Incorporated (NASDAQ:SYKE) Shares?

Sykes Enterprises Insider Transactions Over The Last Year. … So we know that an insider sold shares at around the present share price of US$27.91 … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

A Closer Look At Sykes Enterprises, Incorporated's (NASDAQ:SYKE) Uninspiring ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Sykes Enterprises, Incorporated (NASDAQ:SYKE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.059 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Much Did Sykes Enterprises, Incorporated's (NASDAQ:SYKE) CEO Pocket Last Year?

Chuck Sykes became the CEO of Sykes Enterprises, Incorporated (NASDAQ:SYKE) in 2004. … Our data indicates that Sykes Enterprises, Incorporated is worth US$1.2b, and total annual CEO compensation is US$4.2m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$733k.

Simply Wall St -

Looking At Sykes Enterprises, Incorporated (NASDAQ:SYKE) From All Angles

Sykes Enterprises, Incorporated (NASDAQ:SYKE) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … report on Sykes Enterprises here

Simply Wall St -

Is Sykes Enterprises, Incorporated's (NASDAQ:SYKE) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Sykes Enterprises, Incorporated's (NASDAQ:SYKE) P/E ratio and reflect on what it tells us about the company's share price. … Sykes Enterprises has a price to earnings ratio of 25.4, based on the last twelve months.

Simply Wall St -

Is Sykes Enterprises, Incorporated (NASDAQ:SYKE) Investing Effectively In Its Business?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Sykes Enterprises, Incorporated (NASDAQ:SYKE) A Financially Sound Company?

While small-cap stocks, such as Sykes Enterprises, Incorporated (NASDAQ:SYKE) with its market cap of US$1.2b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

SYKE Company Info

Description

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.

Details
Name: Sykes Enterprises, Incorporated
SYKE
Exchange: NasdaqGS
Founded: 1977
$1,126,565,697
42,431,853
Website: http://www.sykes.com
Address: Sykes Enterprises, Incorporated
400 North Ashley Drive,
Suite 2800,
Tampa,
Florida, 33602,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SYKE Common Stock Nasdaq Global Select US USD 30. Apr 1996
DB SZY Common Stock Deutsche Boerse AG DE EUR 30. Apr 1996
Number of employees
Current staff
Staff numbers
51,600
Sykes Enterprises employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:51
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.