NasdaqGS:SYMC

Stock Analysis Report

Executive Summary

Symantec Corporation provides cyber security products, services, and solutions worldwide.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.08%

SYMC

0.5%

US Software

2.3%

US Market


1 Year Return

14.2%

SYMC

19.6%

US Software

5.6%

US Market

Return vs Industry: SYMC underperformed the US Software industry which returned 19.6% over the past year.

Return vs Market: SYMC exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

SYMCIndustryMarket
7 Day-0.08%0.5%2.3%
30 Day-3.1%0.05%-1.0%
90 Day2.2%-3.8%-0.7%
1 Year15.8%14.2%21.3%19.6%7.9%5.6%
3 Year0.7%-3.0%120.2%111.6%45.6%36.3%
5 Year35.2%-0.04%177.4%157.4%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

138.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SYMC ($23.5) is trading above our estimate of fair value ($18.83)

Significantly Undervalued: SYMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYMC is poor value based on its PE Ratio (138.5x) compared to the Software industry average (47.5x).

PE vs Market: SYMC is poor value based on its PE Ratio (138.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SYMC is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: SYMC is good value based on its PB Ratio (2.8x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

How is Symantec forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYMC's forecast earnings growth (28.8% per year) is above the savings rate (2.7%).

Earnings vs Market: SYMC's earnings (28.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SYMC's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SYMC's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SYMC's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Symantec performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SYMC's earnings have grown by 9% per year over the past 5 years.

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

Earnings vs Industry: SYMC had negative earnings growth (-90.9%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: SYMC's Return on Equity (2%) is considered low.


Return on Assets

ROA vs Industry: SYMC's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: SYMC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Symantec's financial position?


Financial Position Analysis

Short Term Liabilities: SYMC's short term assets ($2.6B) do not cover its short term liabilities ($3.6B)

Long Term Liabilities: SYMC's short term assets (2.6B) do not cover its long term liabilities (6.5B)


Debt to Equity History and Analysis

Debt Level: SYMC's debt to equity ratio (84.9%) is considered high

Reducing Debt: SYMC's debt to equity ratio has increased from 35.9% to 84.9% over the past 5 years.

Debt Coverage: SYMC's debt is well covered by operating cash flow (33.4%).

Interest Coverage: SYMC's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: SYMC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SYMC's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SYMC's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SYMC's dividend (1.28%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: SYMC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SYMC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (176.8%), SYMC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYMC's dividends in 3 years are forecast to be well covered by earnings (18.2% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Rick Hill (67yo)

0.4yrs

Tenure

US$77,720

Compensation

Mr. Richard S. Hill, also known as Rick, has been the Chairman of Marvell Technology Group Ltd. since May 1, 2016 and also serves as its Director. He serves as a Director of Appthority, Inc. Mr. Hill has b ...


Management Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: SYMC's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

60yo

Average Age

Experienced Board: SYMC's board of directors are considered experienced (6 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

BuyUS$120,834,22715 Aug 19
Starboard Value LP
EntityCompany
Shares5,325,814
Max PriceUS$22.95
BuyUS$120,834,22715 Aug 19
Starboard Value LP
EntityCompany
Shares5,325,814
Max PriceUS$22.95
BuyUS$39,173,76016 May 19
Starboard Value LP
EntityCompany
Shares2,000,000
Max PriceUS$19.74
SellUS$12,275,43907 Feb 19
Starboard Value LP
EntityCompany
Shares649,666
Max PriceUS$18.90

Ownership Breakdown


Management Team

  • Rick Hill (67yo)

    Interim President

    • Tenure: 0.4yrs
    • Compensation: US$77.72k
  • Scott Taylor (55yo)

    Executive VP

    • Tenure: 11.2yrs
    • Compensation: US$6.14m
  • Cynthia Hiponia

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Amy Cappellanti-Wolf (54yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 5.3yrs
    • Compensation: US$4.46m
  • Vincent Pilette (47yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Hugh Thompson

    Senior VP & Chief Technology Officer

    • Tenure: 0yrs
  • Samir Kapuria (46yo)

    Executive VP and GM of Consumer Business Unit & Cyber Security Services

    • Tenure: 4.1yrs
    • Compensation: US$10.98m
  • Sheila Jordan (54yo)

    Chief Information Officer & Senior VP

    • Tenure: 5.7yrs
  • Justin Saia

    Vice President of Corporate Communications

    • Tenure: 0.9yrs
  • Matt Brown (39yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 0.8yrs

Board Members

  • Ken Hao (50yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$325.00k
  • Rick Hill (67yo)

    Interim President

    • Tenure: 0.4yrs
    • Compensation: US$77.72k
  • Dan Schulman (61yo)

    Non-Executive Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$470.00k
  • David Mahoney (65yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$380.00k
  • Frank Dangeard (61yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$360.00k
  • Vincent Unruh (70yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$370.00k
  • Anita Sands (43yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$345.00k
  • David Humphrey (42yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$325.00k
  • Peter Feld (40yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$190.18k
  • Zan Vautrinot (59yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$345.00k

Company Information

Symantec Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Symantec Corporation
  • Ticker: SYMC
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$14.524b
  • Shares outstanding: 618.03m
  • Website: https://www.symantec.com

Number of Employees


Location

  • Symantec Corporation
  • 350 Ellis Street
  • Mountain View
  • California
  • 94043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYMCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1989
SYMDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1989
SYMC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1989
SYMCWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1989

Biography

Symantec Corporation provides cyber security products, services, and solutions worldwide. It operates through two segments, Enterprise Security and Consumer Cyber Safety. The Enterprise Security segment of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:41
End of Day Share Price2019/10/16 00:00
Earnings2019/07/05
Annual Earnings2019/03/29


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.