NasdaqGS:TECD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet.


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

Stable Share Price: TECD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

TECD

-4.1%

US Electronic

-2.6%

US Market


1 Year Return

27.0%

TECD

-25.6%

US Electronic

-13.3%

US Market

Return vs Industry: TECD exceeded the US Electronic industry which returned -27% over the past year.

Return vs Market: TECD exceeded the US Market which returned -15.1% over the past year.


Shareholder returns

TECDIndustryMarket
7 Day3.6%-4.1%-2.6%
30 Day-3.6%-19.2%-15.2%
90 Day-6.0%-31.2%-22.2%
1 Year27.0%27.0%-24.8%-25.6%-11.5%-13.3%
3 Year46.7%46.7%-1.2%-4.0%13.2%5.7%
5 Year133.8%133.8%19.9%14.0%31.8%17.2%

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?

10.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TECD ($132.75) is trading below our estimate of fair value ($150.73)

Significantly Below Fair Value: 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 (12.8x) compared to the Electronic industry average (14.3x).

PE vs Market: TECD is poor value based on its PE Ratio (12.8x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: TECD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: TECD is overvalued based on its PB Ratio (1.5x) compared to the US Electronic industry average (1.4x).


Next Steps

Future Growth

How is Tech Data forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECD's forecast earnings growth (11.4% per year) is above the savings rate (1.7%).

Earnings vs Market: TECD's earnings (11.4% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: TECD's revenue (1.2% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: TECD's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TECD has high quality earnings.

Growing Profit Margin: TECD's current net profit margins (1%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: TECD's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: TECD's earnings growth over the past year (10%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: TECD earnings growth over the past year (10%) exceeded the Electronic industry 0.03%.


Return on Equity

High ROE: TECD's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Tech Data's financial position?


Financial Position Analysis

Short Term Liabilities: TECD's short term assets ($10.4B) exceed its short term liabilities ($8.5B).

Long Term Liabilities: TECD's short term assets ($10.4B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: TECD's debt to equity ratio (46.5%) is considered high.

Reducing Debt: TECD's debt to equity ratio has increased from 18.6% to 46.5% over the past 5 years.

Debt Coverage: TECD's debt is well covered by operating cash flow (40.9%).

Interest Coverage: TECD's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Rich Hume (59yo)

1.83s

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's total compensation ($USD4.82M) is about average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Dutkowsky
Executive Chairman of the Board2.83yrsUS$5.35m0.41% $19.9m
Richard Hume
CEO & Director1.83yrsUS$4.82m0.10% $5.0m
Charles Dannewitz
Executive VP & CFO4.83yrsUS$2.50m0.029% $1.4m
David Vetter
Executive VP & Chief Legal Officer3.25yrsUS$2.05m0.093% $4.5m
Joseph Quaglia
President of the Americas12.42yrsUS$2.42m0.017% $798.8k
Patrick Zammit
President of Europe3.17yrsUS$2.09m0.039% $1.9m
Michael Rabinovitch
Senior VP2.08yrsno data0.013% $627.2k
John Tonnison
Executive VP & Chief Information Officer10.17yrsUS$1.45m0.058% $2.8m
Arleen Quinones
Corporate Vice President of Investor Relations & Corporate Communicationsno datano datano data
Jean-Paul Durand
Chief Ethics & Compliance Officer and Vice President6.17yrsno datano data

3.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TECD's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Dutkowsky
Executive Chairman of the Board2.83yrsUS$5.35m0.41% $19.9m
Richard Hume
CEO & Director1.83yrsUS$4.82m0.10% $5.0m
Charles Adair
Lead Independent Directorno dataUS$247.53k0.032% $1.5m
Wai-Hok Tung
Independent Director9.83yrsUS$222.53k0.057% $2.8m
Harry Harczak
Independent Director11.83yrsUS$240.03k0.025% $1.2m
Patrick Sayer
Independent Director7.42yrsUS$222.53k0.036% $1.7m
Kathleen Misunas
Independent Director20.25yrsUS$230.03k0.081% $3.9m
Bridgette Heller
Independent Director3.42yrsUS$227.53k0.015% $720.0k
Thomas Morgan
Independent Director13.17yrsUS$235.03k0.039% $1.9m
Karen Dahut
Independent Director3yrsUS$227.53k0.012% $597.4k

7.4yrs

Average Tenure

63yo

Average Age

Experienced Board: TECD's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$4.806b
  • Shares outstanding: 35.50m
  • 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
TDTBRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 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, peripherals, supplies, endpoint technology software, and consumer electronics. It also provides advanced portfolio solutions, such as data center technologies comprising 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, corporate resellers, and managed service providers. It sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific region. The company was founded in 1974 and is headquartered in Clearwater, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:11
End of Day Share Price2020/04/06 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.