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Tech Data

Nasdaq:TECD
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TECD
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Tech Data Corporation engages in the wholesale distribution of technology products. The last earnings update was 12 days ago. More info.


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  • Tech Data has significant price volatility in the past 3 months.
TECD Share Price and Events
7 Day Returns
2.6%
NasdaqGS:TECD
0.7%
US Electronic
1.6%
US Market
1 Year Returns
21.9%
NasdaqGS:TECD
0%
US Electronic
3.2%
US Market
TECD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tech Data (TECD) 2.6% -0.5% 26.3% 21.9% 32.1% 78.4%
US Electronic 0.7% 0.9% 18.9% 0% 58.7% 59.1%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • TECD outperformed the Electronic industry which returned 0% over the past year.
  • TECD outperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
TECD
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Tech Data 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 Tech Data 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    Our intrinsic value calculation method has changed recently, learn more here.

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

NasdaqGS:TECD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
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:TECD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (36.49%))
1.254
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.254 * 5.96%)
10.21%

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

The calculations below outline how an intrinsic value for Tech Data 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:TECD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.21%)
2019 248.00 Analyst x1 225.03
2020 372.50 Analyst x2 306.70
2021 361.00 Analyst x1 269.70
2022 356.05 Est @ -1.37% 241.37
2023 355.55 Est @ -0.14% 218.71
2024 358.11 Est @ 0.72% 199.88
2025 362.85 Est @ 1.32% 183.77
2026 369.18 Est @ 1.75% 169.66
2027 376.71 Est @ 2.04% 157.09
2028 385.18 Est @ 2.25% 145.74
Present value of next 10 years cash flows $2,117.66
NasdaqGS:TECD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $385.18 × (1 + 2.73%) ÷ (10.21% – 2.73%)
$5,292.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,292.56 ÷ (1 + 10.21%)10
$2,002.61
NasdaqGS:TECD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,117.66 + $2,002.61
$4,120.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,120.26 / 37.32
$110.41
NasdaqGS:TECD Discount to Share Price
Calculation Result
Value per share (USD) From above. $110.41
Current discount Discount to share price of $103.61
= -1 x ($103.61 - $110.41) / $110.41
6.2%

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

Current Discount
Amount off the current price Tech Data is available for.
Intrinsic value
6%
Share price is $103.61 vs Future cash flow value of $110.41
Current Discount Checks
For Tech Data to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Tech Data's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Tech Data'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 Tech Data's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tech Data's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TECD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $8.94
NasdaqGS:TECD Share Price ** NasdaqGS (2019-03-19) in USD $103.61
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.48x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

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

** Primary Listing of Tech Data.

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

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

= 103.61 ÷ 8.94

11.59x

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

  • Tech Data is good value based on earnings compared to the US Electronic industry average.
  • Tech Data is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tech Data's expected growth come at a high price?
Raw Data
NasdaqGS:TECD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
1%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.59x ÷ 1%

11.53x

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

  • Tech Data is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tech Data's assets?
Raw Data
NasdaqGS:TECD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $79.50
NasdaqGS:TECD Share Price * NasdaqGS (2019-03-19) in USD $103.61
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NasdaqGS:TECD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 103.61 ÷ 79.50

1.3x

* Primary Listing of Tech Data.

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

  • Tech Data is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Tech Data'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 Electronic 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 Electronic industry average (and greater than 0)? (1 check)
  5. Tech Data 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.

Future Performance

 How is Tech Data expected to perform in the next 1 to 3 years based on estimates from 7 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
1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tech Data expected to grow at an attractive rate?
  • Tech Data's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Tech Data's earnings growth is positive but not above the United States of America market average.
  • Tech Data's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TECD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TECD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 1%
NasdaqGS:TECD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 2.1%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:TECD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TECD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31
2021-01-31 38,876 421 350 4
2020-01-31 37,940 383 326 7
NasdaqGS:TECD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 37,239 341
2018-10-31 39,985 805 225
2018-07-31 39,093 720 148
2018-04-30 38,300 305 120
2018-01-31 36,775 1,097 117
2017-10-31 30,992 886 194
2017-07-31 29,034 843 193
2017-04-30 27,295 606 192
2017-01-31 26,235 657 195
2016-10-31 26,291 179 212
2016-07-31 26,229 71 218
2016-04-30 26,456 362 248

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tech Data's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
  • Tech Data's revenue is expected to grow by 2.1% 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:TECD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Tech Data Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TECD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31
2021-01-31 9.95 10.86 8.28 3.00
2020-01-31 9.86 12.73 7.88 5.00
NasdaqGS:TECD Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 8.94
2018-10-31 5.87
2018-07-31 3.87
2018-04-30 3.13
2018-01-31 3.07
2017-10-31 5.22
2017-07-31 5.30
2017-04-30 5.38
2017-01-31 5.54
2016-10-31 6.04
2016-07-31 6.20
2016-04-30 6.99

*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 Tech Data will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Tech Data'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.
Tech Data has a total score of 0/6, 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.

Past Performance

  How has Tech Data 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 Tech Data's growth in the last year to its industry (Electronic).
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.
  • Tech Data's year on year earnings growth rate has been positive over the past 5 years.
  • Tech Data's 1-year earnings growth exceeds its 5-year average (192% vs 0.1%)
  • Tech Data's earnings growth has exceeded the US Electronic industry average in the past year (192% vs 48.8%).
Earnings and Revenue History
Tech Data'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 Tech Data Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TECD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 37,238.95 340.58 1,648.90
2018-10-31 39,985.02 225.04 1,663.32
2018-07-31 39,093.46 148.09 1,683.41
2018-04-30 38,299.71 119.69 1,678.69
2018-01-31 36,775.01 116.64 1,608.96
2017-10-31 30,991.95 194.20 1,433.94
2017-07-31 29,033.75 193.44 1,257.12
2017-04-30 27,295.13 192.38 1,090.29
2017-01-31 26,234.88 195.10 984.15
2016-10-31 26,290.99 212.42 972.71
2016-07-31 26,229.26 217.81 982.60
2016-04-30 26,455.92 247.83 988.97
2016-01-31 26,379.78 265.74 992.46
2015-10-31 26,235.65 250.27 1,015.33
2015-07-31 26,568.29 250.07 1,036.72
2015-04-30 26,829.71 212.98 1,071.10
2015-01-31 27,670.63 175.17 1,114.23
2014-10-31 28,304.25 204.26 1,135.39
2014-07-31 27,916.63 200.27 1,134.28
2014-04-30 27,402.30 175.64 1,124.79
2014-01-31 26,821.90 179.93 1,116.55
2013-10-31 26,291.17 114.61 1,112.67
2013-07-31 25,955.08 119.83 1,085.02
2013-04-30 25,596.02 139.84 1,052.28
2013-01-31 25,358.33 176.26 1,009.87
2012-10-31 24,187.70 170.24 995.30
2012-07-31 24,744.21 180.82 1,007.99
2012-04-30 25,225.25 196.23 1,027.77

*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.
  • Tech Data has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tech Data used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Tech Data has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tech Data'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 Electronic 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.
Tech Data has a total score of 4/6, 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.

Health

 How is Tech Data'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 Tech Data's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tech Data is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tech Data's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tech Data'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 7.6x 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 Tech Data Company Filings, last reported 1 month ago.

NasdaqGS:TECD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 2,936.72 1,410.92 799.12
2018-10-31 2,837.79 1,411.89 646.48
2018-07-31 2,850.71 1,519.18 792.86
2018-04-30 2,868.71 1,619.59 345.58
2018-01-31 2,921.49 1,637.91 955.63
2017-10-31 2,723.82 1,919.88 562.65
2017-07-31 2,732.23 2,268.03 1,033.27
2017-04-30 2,481.24 2,285.80 861.54
2017-01-31 2,169.89 1,363.05 2,125.59
2016-10-31 2,092.44 365.42 691.57
2016-07-31 2,108.15 361.96 697.05
2016-04-30 2,134.88 366.76 825.73
2016-01-31 2,005.76 366.67 531.17
2015-10-31 1,967.76 365.14 585.96
2015-07-31 1,963.89 370.02 709.27
2015-04-30 1,972.48 367.95 619.18
2015-01-31 1,960.14 364.88 543.00
2014-10-31 2,085.70 400.01 465.74
2014-07-31 2,152.89 402.53 611.53
2014-04-30 2,157.41 404.03 675.63
2014-01-31 2,098.61 397.60 570.10
2013-10-31 1,993.41 400.39 471.03
2013-07-31 1,902.74 395.43 586.84
2013-04-30 1,888.39 388.82 326.53
2013-01-31 1,918.37 521.98 340.56
2012-10-31 1,834.86 420.12 515.79
2012-07-31 1,821.05 91.57 277.63
2012-04-30 2,037.78 88.75 447.04
  • Tech Data's level of debt (48%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.9% vs 48% today).
  • Debt is well covered by operating cash flow (57.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).
X
Financial health checks
We assess Tech Data'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. Tech Data has a total score of 4/6, 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.

Dividends

 What is Tech Data'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 Tech Data dividends. Estimated to be 0% next year.
If you bought $2,000 of Tech Data 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 Tech Data's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Tech Data'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:TECD 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 7 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
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 3.6%

Industry and Market average data is calculated daily.

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

NasdaqGS:TECD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-01-31 0.00 1.00
2021-01-31 0.00 2.00
2020-01-31 0.00 2.00

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

  • Unable to perform a dividend volatility check as Tech Data has not reported any payouts.
  • Unable to verify if Tech Data's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Tech Data's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Tech Data has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Tech Data's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Tech Data'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 Tech Data afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tech Data 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.

Management

 What is the CEO of Tech Data'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
Rich Hume
COMPENSATION $3,282,816
AGE 58
TENURE AS CEO 0.8 years
CEO Bio

Mr. Richard T. Hume, also known as Rich, serves as Chief Executive Officer & Director of Tech Data Corp. since June 06, 2018. He was the Chief Operating Officer and Executive Vice President of Tech Data Corporation from March 24, 2016 until June 06, 2018. Mr. Hume joined Tech Data following a 30-year career with IBM. He served as General Manager and Chief Operating Officer of Global Technology Services at International Business Machines Corporation since January 2015. Mr. Hume served as General Manager of IBM Europe at International Business Machines Corporation from January 2012 to January 2015. He served as General Manager of Business Partner Organization at International Business Machines Corporation from May 2008 to January 2012 and was responsible for leading, which supports IBM's approximately 120,000 Business Partners globally. In January 2010, his channel role was expanded to oversee IBM's midmarket client segment. He joined IBM in 1984, has held a series of leadership positions including General Manager of IBM's x86-based System x server division where he reinvented the System x supply chain to optimize profitability for IBM and its Business Partners. He served as General Manager of Operations, IBM Global Business Solutions, where he managed the global business processes that support sales and delivery of IBM’s consulting services. Prior to these roles, he led a variety of IBM organizations, including its Personal Computing Division in North America and ibm.com globally. He also has extensive experience in IBM's Finance function where he served as the Chief Financial Officer of IBM's PC business, prior to its sale. Over the course of his IBM career, he also led its System X Servers, Global Inside Sales, North American PC business and was Chief Operating Officer for the Global Consulting business. He holds a B.S. in Accounting from Pennsylvania State University and was previously a Certified Public Accountant.

CEO Compensation
  • Rich's compensation has been consistent with company performance over the past year.
  • Rich's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Tech Data management team in years:

2.1
Average Tenure
58
Average Age
  • The tenure for the Tech Data management team is about average.
Management Team

Bob Dutkowsky

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
63
TENURE
0.8 yrs

Rich Hume

TITLE
CEO & Director
COMPENSATION
$3M
AGE
58
TENURE
0.8 yrs

Chuck Dannewitz

TITLE
CFO & Executive VP
COMPENSATION
$3M
AGE
63
TENURE
3.8 yrs

David Vetter

TITLE
Chief Legal Officer & Executive VP
COMPENSATION
$2M
AGE
58
TENURE
2.2 yrs

Rick Zammit

TITLE
President of Europe
COMPENSATION
$4M
AGE
51
TENURE
2.1 yrs

Mike Rabinovitch

TITLE
Senior VP & Chief Accounting Officer
AGE
48
TENURE
1 yrs

JT Tonnison

TITLE
Chief Information Officer & Executive VP
COMPENSATION
$1M
AGE
49
TENURE
9.1 yrs

Arleen Quinones

TITLE
Corporate Vice President of Investor Relations & Corporate Communications

JP Durand

TITLE
Chief Ethics & Compliance Officer and Vice President
TENURE
5.1 yrs

Bill Brooks

TITLE
Vice President of Sales & Technical Services
Board of Directors Tenure

Average tenure and age of the Tech Data board of directors in years:

6.3
Average Tenure
62
Average Age
  • The tenure for the Tech Data board of directors is about average.
Board of Directors

Rich Hume

TITLE
CEO & Director
COMPENSATION
$3M
AGE
58
TENURE
0.8 yrs

Eddie Adair

TITLE
Lead Independent Director
COMPENSATION
$261K
AGE
71

Bob Dutkowsky

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
63
TENURE
1.8 yrs

Tom Morgan

TITLE
Independent Director
COMPENSATION
$247K
AGE
64
TENURE
12.1 yrs

Harry Harczak

TITLE
Independent Director
COMPENSATION
$254K
AGE
61
TENURE
10.8 yrs

Kathy Misunas

TITLE
Independent Director
COMPENSATION
$239K
AGE
67
TENURE
19.2 yrs

Savio Tung

TITLE
Independent Director
COMPENSATION
$230K
AGE
67
TENURE
8.8 yrs

Patrick Sayer

TITLE
Independent Director
COMPENSATION
$231K
AGE
61
TENURE
6.3 yrs

Bridgette Heller

TITLE
Independent Director
COMPENSATION
$228K
AGE
57
TENURE
2.3 yrs

Karen Dahut

TITLE
Director
COMPENSATION
$439K
AGE
54
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • Tech Data insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Mar 19 Sell Charles Dannewitz Individual 11. Mar 19 11. Mar 19 -5,000 $100.34 $-501,700
12. Mar 19 Sell David Vetter Individual 11. Mar 19 11. Mar 19 -6,000 $98.33 $-588,692
12. Mar 19 Sell Michael Rabinovitch Individual 11. Mar 19 11. Mar 19 -1,133 $99.06 $-112,235
15. Jan 19 Sell Robert Dutkowsky Individual 11. Jan 19 11. Jan 19 -10,000 $91.02 $-910,172
15. Jan 19 Sell Beth Simonetti Individual 11. Jan 19 11. Jan 19 -592 $91.98 $-54,450
15. Jan 19 Sell Harry Harczak Individual 11. Jan 19 11. Jan 19 -3,000 $91.57 $-274,709
12. Dec 18 Sell John Tonnison Individual 11. Dec 18 11. Dec 18 -5,000 $87.19 $-435,204
04. Dec 18 Sell Charles Adair Individual 03. Dec 18 03. Dec 18 -2,715 $90.72 $-246,300
X
Management checks
We assess Tech Data'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. Tech Data 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.

News

Simply Wall St News

What Investors Should Know About Tech Data Corporation's (NASDAQ:TECD) Financial Strength

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Tech Data Corporation (NASDAQ:TECD), with a market cap of US$3.5b, often get neglected by retail investors. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Calculating The Fair Value Of Tech Data Corporation (NASDAQ:TECD)

In this article I am going to calculate the intrinsic value of Tech Data Corporation (NASDAQ:TECD). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Based On Its ROE, Is Tech Data Corporation (NASDAQ:TECD) A High Quality Stock?

Our data shows Tech Data has a return on equity of 7.9% for the last year. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.079. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Worry About Tech Data Corporation’s (NASDAQ:TECD) ROCE?

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

Simply Wall St -

Do You Like Tech Data Corporation (NASDAQ:TECD) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Tech Data has a price to earnings ratio of 14.63, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Tech Data Corporation (NASDAQ:TECD) Has Attractive Fundamentals

Tech Data Corporation (NASDAQ:TECD) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … report on Tech Data here

Simply Wall St -

Have Insiders Been Selling Tech Data Corporation (NASDAQ:TECD) Shares?

So before you buy or sell Tech Data Corporation (NASDAQ:TECD), you may well want to know whether insiders have been buying or selling. … Tech Data Insider Transactions Over The Last Year. … So we know that an insider sold shares at around the present share price of US$83.91.

Simply Wall St -

Is There An Opportunity With Tech Data Corporation's (NASDAQ:TECD) 33.79% Undervaluation?

In this article I am going to calculate the intrinsic value of Tech Data Corporation (NASDAQ:TECD). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Tech Data Corporation (NASDAQ:TECD) Delivered A Weaker ROE Than Its Industry

By way of learning-by-doing, we'll look at ROE to gain a better understanding Tech Data Corporation (NASDAQ:TECD). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.052 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Tech Data Corporation's (NASDAQ:TECD) Interest Costs Too High?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Tech Data Corporation (NASDAQ:TECD), with a market cap of US$3.39b, are often out of the spotlight. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … View our latest analysis for Tech Data

Simply Wall St -

Company Info

Description

Tech Data Corporation engages in the wholesale distribution of technology products. It offers endpoint portfolio solutions, including PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics; and advanced portfolio solutions, such as storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions. The company serves value-added resellers, direct marketers, retailers, and corporate resellers. Tech Data Corporation sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1974 and is headquartered in Clearwater, Florida.

Details
Name: Tech Data Corporation
TECD
Exchange: NasdaqGS
Founded: 1974
$3,866,492,699
37,317,756
Website: http://www.techdata.com
Address: Tech Data Corporation
5350 Tech Data Drive,
Clearwater,
Florida, 33760,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TECD Common Stock Nasdaq Global Select US USD 23. Apr 1986
DB TDT Common Stock Deutsche Boerse AG DE EUR 23. Apr 1986
Number of employees
Current staff
Staff numbers
14,000
Tech Data employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:43
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/08
Last earnings filing: 2019/03/07
Last earnings reported: 2019/01/31
Last annual earnings reported: 2019/01/31


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.