NasdaqGS:TECD

Stock Analysis Report

Executive Summary

Tech Data Corporation operates as an IT distribution and solutions company.

Snowflake

Fundamentals

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

17.8%

TECD

4.0%

US Electronic

1.8%

US Market


1 Year Return

74.9%

TECD

13.3%

US Electronic

7.3%

US Market

Return vs Industry: TECD exceeded the US Electronic industry which returned 13.3% over the past year.

Return vs Market: TECD exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

TECDIndustryMarket
7 Day17.8%4.0%1.8%
30 Day20.0%1.1%-0.7%
90 Day25.0%4.2%0.06%
1 Year74.9%74.9%14.4%13.3%9.7%7.3%
3 Year57.5%57.5%54.7%50.4%46.3%36.9%
5 Year119.7%119.7%88.7%79.6%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TECD ($124.77) is trading below our estimate of fair value ($166.2)

Significantly Undervalued: TECD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TECD is good value based on its PE Ratio (12.7x) compared to the Electronic industry average (19.2x).

PE vs Market: TECD is good value based on its PE Ratio (12.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TECD is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TECD is good value based on its PB Ratio (1.6x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Tech Data forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECD's forecast earnings growth (9.7% per year) is above the savings rate (2.7%).

Earnings vs Market: TECD's earnings (9.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: TECD's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TECD's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TECD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tech Data performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TECD's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: TECD's earnings growth over the past year (146.9%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: TECD earnings growth over the past year (146.9%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: TECD's Return on Equity (12.7%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: TECD has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tech Data's financial position?


Financial Position Analysis

Short Term Liabilities: TECD's short term assets ($9.6B) exceeds its short term liabilities ($7.6B)

Long Term Liabilities: TECD's short term assets (9.6B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: TECD's debt to equity ratio (49.3%) is considered high

Reducing Debt: TECD's debt to equity ratio has increased from 18.7% to 49.3% over the past 5 years.

Debt Coverage: TECD's debt is well covered by operating cash flow (34.3%).

Interest Coverage: TECD's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: TECD's debt is covered by short term assets (assets are 6.736710x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TECD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Stable Dividend: Insufficient data to determine if TECD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TECD'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 TECD'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 Tech Data's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Rich Hume (59yo)

1.3yrs

Tenure

US$4,815,613

Compensation

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 Co ...


CEO Compensation Analysis

Compensation vs. Market: Rich has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Rich's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TECD's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

63yo

Average Age

Experienced Board: TECD's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: TECD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$36,59310 Oct 19
Michael Rabinovitch
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares349
Max PriceUS$104.85
SellUS$108,78011 Sep 19
Charles Dannewitz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,050
Max PriceUS$103.60
SellUS$1,050,36911 Sep 19
Robert Dutkowsky
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares10,000
Max PriceUS$105.04
SellUS$157,17511 Sep 19
Beth Simonetti
EntityIndividual
Shares1,500
Max PriceUS$104.78
SellUS$409,21801 Jul 19
John Tonnison
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares4,000
Max PriceUS$102.35
SellUS$201,02601 Jul 19
Thomas Morgan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$100.51
SellUS$209,63407 Jun 19
Harry Harczak
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,200
Max PriceUS$95.29
SellUS$220,36515 Apr 19
David Vetter
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares2,000
Max PriceUS$110.18
SellUS$264,72812 Apr 19
Charles Dannewitz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,500
Max PriceUS$105.89
SellUS$2,473,61912 Apr 19
Robert Dutkowsky
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares22,900
Max PriceUS$108.02
SellUS$1,291,90812 Apr 19
Patrick Zammit
EntityIndividual
Role
Senior Key Executive
President of Europe
Shares12,000
Max PriceUS$107.66
SellUS$226,84109 Apr 19
Robert Dutkowsky
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares2,100
Max PriceUS$108.02
SellUS$329,31409 Apr 19
Charles Adair
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,116
Max PriceUS$105.68
SellUS$209,73302 Apr 19
Charles Dannewitz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max PriceUS$104.90
SellUS$313,59025 Mar 19
Charles Dannewitz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,000
Max PriceUS$104.53
SellUS$737,10725 Mar 19
Joseph Quaglia
EntityIndividual
Role
Senior Key Executive
President of the Americas
Shares7,000
Max PriceUS$105.30
SellUS$41,60021 Mar 19
Michael Rabinovitch
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares400
Max PriceUS$104.00
SellUS$501,70012 Mar 19
Charles Dannewitz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$100.34
SellUS$112,23512 Mar 19
Michael Rabinovitch
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,133
Max PriceUS$99.06
SellUS$588,69212 Mar 19
David Vetter
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares6,000
Max PriceUS$98.33
SellUS$54,45015 Jan 19
Beth Simonetti
EntityIndividual
Shares592
Max PriceUS$91.98
SellUS$274,70915 Jan 19
Harry Harczak
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$91.57
SellUS$910,17215 Jan 19
Robert Dutkowsky
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares10,000
Max PriceUS$91.02
SellUS$435,20412 Dec 18
John Tonnison
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares5,000
Max PriceUS$87.19
SellUS$246,30004 Dec 18
Charles Adair
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,715
Max PriceUS$90.72

Ownership Breakdown


Management Team

  • Bob Dutkowsky (64yo)

    Executive Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$5.35m
  • Chuck Dannewitz (64yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$2.50m
  • David Vetter (59yo)

    Executive VP & Chief Legal Officer

    • Tenure: 2.8yrs
    • Compensation: US$2.05m
  • JT Tonnison (50yo)

    Executive VP & Chief Information Officer

    • Tenure: 9.7yrs
    • Compensation: US$1.45m
  • Mike Rabinovitch (49yo)

    Senior VP

    • Tenure: 1.6yrs
  • Joe Quaglia (54yo)

    President of the Americas

    • Tenure: 11.9yrs
    • Compensation: US$2.42m
  • Rick Zammit (52yo)

    President of Europe

    • Tenure: 2.7yrs
    • Compensation: US$2.09m
  • Arleen Quinones

    Corporate Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Rich Hume (59yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: US$4.82m
  • JP Durand

    Chief Ethics & Compliance Officer and Vice President

    • Tenure: 5.7yrs

Board Members

  • Eddie Adair (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$247.53k
  • Savio Tung (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$222.53k
  • Bob Dutkowsky (64yo)

    Executive Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$5.35m
  • Harry Harczak (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$240.03k
  • Patrick Sayer (62yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$222.53k
  • Kathy Misunas (68yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$230.03k
  • Bridgette Heller (58yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$227.53k
  • Tom Morgan (65yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$235.03k
  • Rich Hume (59yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: US$4.82m
  • Karen Dahut (55yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$227.53k

Company Information

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


Key Information

  • Name: Tech Data Corporation
  • Ticker: TECD
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$4.442b
  • Shares outstanding: 35.60m
  • Website: https://www.techdata.com

Number of Employees


Location

  • Tech Data Corporation
  • 5350 Tech Data Drive
  • Clearwater
  • Florida
  • 33760
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TECDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1986
TDTDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1986

Biography

Tech Data Corporation operates as an IT distribution and solutions company. The company offers endpoint portfolio solutions, including personal computer systems, mobile phones and accessories, printers, pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:43
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.