NasdaqGS:SYKE

Stock Analysis Report

Executive Summary

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

Snowflake

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

-1.7%

SYKE

0.3%

US IT

-0.2%

US Market


1 Year Return

27.6%

SYKE

33.5%

US IT

16.1%

US Market

Return vs Industry: SYKE underperformed the US IT industry which returned 33.5% over the past year.

Return vs Market: SYKE exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

SYKEIndustryMarket
7 Day-1.7%0.3%-0.2%
30 Day12.5%6.6%3.7%
90 Day22.1%2.3%8.5%
1 Year27.6%27.6%34.9%33.5%18.7%16.1%
3 Year21.4%21.4%96.0%87.7%46.9%37.4%
5 Year49.2%49.2%132.1%111.5%61.8%44.0%

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?

24.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SYKE ($34.56) is trading above our estimate of fair value ($31.44)

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 (24.9x) compared to the IT industry average (31x).

PE vs Market: SYKE is poor value based on its PE Ratio (24.9x) compared to the US market (18x).


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 (1.7x) 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 4 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYKE's forecast earnings growth (22% per year) is above the savings rate (2.7%).

Earnings vs Market: SYKE's earnings (22% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYKE's revenue (4.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SYKE's revenue (4.2% 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 (11.3%).


Next Steps

Past Performance

How has Sykes Enterprises performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYKE has high quality earnings.

Growing Profit Margin: SYKE's current net profit margins (3.6%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SYKE's earnings have declined by -9.4% per year over the past 5 years.

Accelerating Growth: SYKE's earnings growth over the past year (291.5%) exceeds its 5-year average (-9.4% per year).

Earnings vs Industry: SYKE earnings growth over the past year (291.5%) exceeded the IT industry 17%.


Return on Equity

High ROE: SYKE's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sykes Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: SYKE's short term assets ($535.5M) exceeds its short term liabilities ($247.1M)

Long Term Liabilities: SYKE's short term assets ($535.5M) exceeds its long term liabilities (288.8M)


Debt to Equity History and Analysis

Debt Level: SYKE's debt to equity ratio (9.2%) is considered satisfactory.

Reducing Debt: SYKE's debt to equity ratio has reduced from 12.1% to 9.2% over the past 5 years.

Debt Coverage: SYKE's debt is well covered by operating cash flow (152.2%).

Interest Coverage: SYKE's interest payments on its debt are well covered by EBIT (25.2x 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 7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

7.2yrs

Average management tenure


CEO

Chuck Sykes (56yo)

15.3yrs

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 ($USD4.35M) is about average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

7.2yrs

Average Tenure

56yo

Average Age

Experienced Management: SYKE's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

66yo

Average Age

Experienced Board: SYKE's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

SellUS$145,24322 Aug 19
David Pearson
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares5,000
Max PriceUS$29.05
SellUS$383,82105 Mar 19
Jenna Nelson
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares12,800
Max PriceUS$29.99
SellUS$68,26603 Dec 18
James Holder
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Corporate Secretary
Shares2,500
Max PriceUS$27.31

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chuck Sykes (56yo)

    President

    • Tenure: 15.3yrs
    • Compensation: US$4.35m
  • Jim Holder (60yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 18.9yrs
    • Compensation: US$926.33k
  • Jenna Nelson (55yo)

    Chief Human Resources Officer

    • Tenure: 9.5yrs
  • Lance Zingale (63yo)

    Chief Customer Officer & GM of EMEA

    • Tenure: 7.2yrs
    • Compensation: US$1.57m
  • Dave Pearson (60yo)

    Chief Information Officer

    • Tenure: 15.3yrs
    • Compensation: US$834.84k
  • John Chapman (52yo)

    Chief Finance Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.54m
  • Jim Farnsworth (53yo)

    Executive Vice President of Americas Business Development

    • Tenure: 3yrs
    • Compensation: US$880.73k
  • Victoria Georgalakis

    MD & Senior VP of Global Region - EMEA

    • Tenure: 2.7yrs
  • Ian Barkin

    Chief Strategy & Marketing Officer

    • Tenure: 0.8yrs
  • Subhaash Kumar

    Global Vice President of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Chuck Sykes (56yo)

    President

    • Tenure: 15.3yrs
    • Compensation: US$4.35m
  • Mark Bozek (59yo)

    Director

    • Tenure: 0.5yrs
    • Compensation: US$14.38k
  • William Meurer (75yo)

    Independent Director

    • Tenure: 19.1yrs
    • Compensation: US$198.81k
  • Bill Muir (51yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$191.88k
  • Vanessa C. Chang (66yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$203.03k
  • Carlos Evans (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$188.96k
  • Jim MacLeod (71yo)

    Non-Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: US$274.98k
  • Lorraine Lutton (53yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$190.57k
  • William Watson (69yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$225.64k

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$1.447b
  • 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 inquiri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:47
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
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.