NYSE:SNX

Stock Analysis Report

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Executive Summary

SYNNEX Corporation provides business process services in the United States and internationally. More Details


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SNX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: SNX's weekly volatility has increased from 11% to 16% over the past year.


Market Performance


7 Day Return

2.6%

SNX

1.3%

US Electronic

2.3%

US Market


1 Year Return

-37.1%

SNX

27.9%

US Electronic

23.8%

US Market

Return vs Industry: SNX underperformed the US Electronic industry which returned 27.9% over the past year.

Return vs Market: SNX underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

SNXIndustryMarket
7 Day2.6%1.3%2.3%
30 Day8.6%7.4%4.8%
90 Day-38.2%23.6%14.5%
1 Year25.8%-37.1%31.1%27.9%26.6%23.8%
3 Year50.3%-27.0%42.4%36.4%45.0%35.4%
5 Year124.3%6.9%168.6%151.3%126.2%101.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNX ($89.78) is trading below our estimate of fair value ($487.42)

Significantly Below Fair Value: SNX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SNX is good value based on its PE Ratio (8.6x) compared to the US Electronic industry average (27.8x).

PE vs Market: SNX is good value based on its PE Ratio (8.6x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SNX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SNX is good value based on its PB Ratio (1.1x) compared to the US Electronic industry average (2.8x).


Next Steps

Future Growth

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

-16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNX's earnings are forecast to decline over the next 3 years (-16.3% per year).

Earnings vs Market: SNX's earnings are forecast to decline over the next 3 years (-16.3% per year).

High Growth Earnings: SNX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SNX's revenue is expected to decline over the next 3 years (-10.6% per year).

High Growth Revenue: SNX's revenue is forecast to decline over the next 3 years (-10.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SYNNEX performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNX has high quality earnings.

Growing Profit Margin: SNX's current net profit margins (2.1%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: SNX's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: SNX's earnings growth over the past year (6.6%) is below its 5-year average (20.9% per year).

Earnings vs Industry: SNX earnings growth over the past year (6.6%) exceeded the Electronic industry -9.3%.


Return on Equity

High ROE: SNX's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is SYNNEX's financial position?


Financial Position Analysis

Short Term Liabilities: SNX's short term assets ($8.8B) exceed its short term liabilities ($5.6B).

Long Term Liabilities: SNX's short term assets ($8.8B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: SNX's debt to equity ratio (50.1%) is considered high.

Reducing Debt: SNX's debt to equity ratio has increased from 40.9% to 50.1% over the past 5 years.

Debt Coverage: SNX's debt is well covered by operating cash flow (87.2%).

Interest Coverage: SNX's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Next Steps

Dividend

What is SYNNEX current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNX's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: SNX's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.85%).


Stability and Growth of Payments

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

Growing Dividend: SNX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.8%), SNX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNX is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Dennis Polk (53 yo)

2.83yrs

Tenure

US$6,202,995

Compensation

Mr. Dennis Polk serves as the Director of Concentrix Corporation. He has been the President and Chief Executive Officer at SYNNEX Corp. since March 1, 2018. Mr. Polk served as the Chief Operating Officer o...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD6.20M) is about average for companies of similar size in the US market ($USD5.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dennis Polk
President2.83yrsUS$6.20m0.085%
$ 3.9m
Marshall Witt
Chief Financial Officer7.75yrsUS$1.94m0.033%
$ 1.5m
Peter Larocque
President of North America Technology Solutions19.58yrsUS$3.44m0.032%
$ 1.5m
Michael Urban
President of Worldwide Technology Solutions Distribution1.92yrsUS$4.03m0.019%
$ 863.5k
Mike Vaishnav
Senior VP of Corporate Finance & Treasurer8yrsno datano data
Simon Leung
Senior VP19.67yrsUS$1.09m0.030%
$ 1.4m
Scott Barker
Senior Vice President of Wide Format Sales11yrsno datano data
Vikram Sinha
Corporate Controller & Investor Relations1yrno datano data

7.9yrs

Average Tenure

54yo

Average Age

Experienced Management: SNX's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Polk
President2.83yrsUS$6.20m0.085%
$ 3.9m
Dwight Steffensen
Lead Independent Director2.83yrsUS$316.33k0.0020%
$ 93.9k
Duane Zitzner
Independent Director13.67yrsUS$236.33k0.045%
$ 2.1m
Kevin Murai
Chairman of the Board2.83yrsUS$353.13k0.24%
$ 11.3m
Gregory Quesnel
Independent Director15.33yrsUS$256.33k0.027%
$ 1.2m
Fred Breidenbach
Independent Director17.92yrsUS$236.33k0.033%
$ 1.5m
Hau Leung Lee
Independent Director8.92yrsUS$236.33k0.037%
$ 1.7m
Feng-Chiang Miau
Chairman Emeritus12.08yrsUS$236.33k1.16%
$ 53.6m
Andrea Zulberti
Independent Director10.33yrsUS$262.33k0.031%
$ 1.4m
Ann Vezina
Independent Director3.92yrsUS$236.33k0.012%
$ 545.6k
Thomas Wurster
Independent Director8.92yrsUS$248.83k0.028%
$ 1.3m
Chris Booth
Member of Varnex Advisory Council7.75yrsno datano data

8.9yrs

Average Tenure

68yo

Average Age

Experienced Board: SNX's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SNX insiders have only sold shares 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

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


Key Information

  • Name: SYNNEX Corporation
  • Ticker: SNX
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$4.628b
  • Shares outstanding: 51.54m
  • Website: https://www.synnexcorp.com

Number of Employees


Location

  • SYNNEX Corporation
  • 44201 Nobel Drive
  • Fremont
  • California
  • 94538
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNXNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2003
SUXDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2003
SNX.WINYSE (New York Stock Exchange)COM STKUSUSDNov 2020

Biography

SYNNEX Corporation provides business process services in the United States and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distribute...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 23:56
End of Day Share Price2021/01/22 00:00
Earnings2020/11/30
Annual Earnings2020/11/30


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.