SYNNEX
Market Cap
US$7.3b
Last Updated
2020/02/16 23:53 UTC
Data Sources
Company Financials +
Executive Summary
SYNNEX Corporation provides business process services in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.9%
SNX
1.8%
US Electronic
1.8%
US Market
1 Year Return
40.2%
SNX
10.4%
US Electronic
20.1%
US Market
Return vs Industry: SNX exceeded the US Electronic industry which returned 10.4% over the past year.
Return vs Market: SNX exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| SNX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | 1.8% | 1.8% |
| 30 Day | -3.0% | -4.7% | 1.4% |
| 90 Day | 19.6% | 2.0% | 8.8% |
| 1 Year | 42.1%40.2% | 11.5%10.4% | 22.7%20.1% |
| 3 Year | 25.0%20.3% | 37.4%33.6% | 50.1%40.4% |
| 5 Year | 90.3%80.1% | 70.2%61.8% | 72.9%53.9% |
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
1 week ago | Simply Wall St
Introducing SYNNEX (NYSE:SNX), A Stock That Climbed 82% In The Last Five Years2 weeks ago | Simply Wall St
The Lead Independent Director of SYNNEX Corporation (NYSE:SNX), Dwight Steffensen, Just Sold 67% Of Their Holding4 weeks ago | Simply Wall St
There's A Lot To Like About SYNNEX Corporation's (NYSE:SNX) Upcoming US$0.40 DividendValuation
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 ($142.42) is trading below our estimate of fair value ($411.64)
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 (14.5x) compared to the Electronic industry average (20.2x).
PE vs Market: SNX is good value based on its PE Ratio (14.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SNX is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: SNX is good value based on its PB Ratio (1.9x) compared to the US Electronic industry average (1.9x).
Next Steps
Future Growth
How is SYNNEX forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SNX's forecast earnings growth (10.8% per year) is above the savings rate (1.7%).
Earnings vs Market: SNX's earnings (10.8% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: SNX's earnings are forecast to grow, but not significantly.
Revenue vs Market: SNX's revenue is expected to decline over the next 3 years (-3.2% per year).
High Growth Revenue: SNX's revenue is forecast to decline over the next 3 years (-3.2% 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?
18.3%
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 (1.5%).
Past Earnings Growth Analysis
Earnings Trend: SNX's earnings have grown by 18.3% per year over the past 5 years.
Accelerating Growth: SNX's earnings growth over the past year (66.9%) exceeds its 5-year average (18.3% per year).
Earnings vs Industry: SNX earnings growth over the past year (66.9%) exceeded the Electronic industry 14.6%.
Return on Equity
High ROE: SNX's Return on Equity (13.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is SYNNEX's financial position?
Financial Position Analysis
Short Term Liabilities: SNX's short term assets ($7.5B) exceed its short term liabilities ($4.6B).
Long Term Liabilities: SNX's short term assets ($7.5B) exceed its long term liabilities ($3.3B).
Debt to Equity History and Analysis
Debt Level: SNX's debt to equity ratio (79.6%) is considered high.
Reducing Debt: SNX's debt to equity ratio has increased from 59.2% to 79.6% over the past 5 years.
Debt Coverage: SNX's debt is not well covered by operating cash flow (18.2%).
Interest Coverage: SNX's interest payments on its debt are well covered by EBIT (5.8x coverage).
Balance Sheet
Inventory Level: SNX has a high level of physical assets or inventory.
Debt Coverage by Assets: SNX's debt is covered by short term assets (assets are 2.5x debt).
Next Steps
Dividend
What is SYNNEX's current dividend yield, its reliability and sustainability?
1.12%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SNX's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: SNX's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SNX has been paying a dividend for less than 10 years.
Growing Dividend: SNX's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.3%), SNX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SNX'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?
7.0yrs
Average management tenure
CEO
Dennis Polk (52yo)
1.9yrs
Tenure
US$6,202,995
Compensation
Mr. Dennis Polk has been the President and Chief Executive Officer at SYNNEX Corp. since March 1, 2018. Mr. Polk served as the Chief Operating Officer of SYNNEX Corporation since July 2006. Mr. Polk served ...
CEO Compensation Analysis
Compensation vs Market: Dennis's total compensation ($USD6.20M) is about average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.9yrs | US$6.20m | 0.084% $6.2m | |
| Chief Financial Officer | 6.8yrs | US$1.94m | 0.031% $2.3m | |
| President of North America Technology Solutions | 18.7yrs | US$3.44m | 0.040% $2.9m | |
| Executive Vice-President | 6yrs | US$6.94m | 0.079% $5.8m | |
| President of Worldwide Technology Solutions Distribution | 1yrs | US$4.03m | 0.022% $1.6m | |
| Senior VP of Corporate Finance & Treasurer | 7.1yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 18.8yrs | US$1.09m | 0.032% $2.3m | |
| Senior Vice President of Wide Format Sales | 10.1yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data |
7.0yrs
Average Tenure
53yo
Average Age
Experienced Management: SNX's management team is seasoned and experienced (7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.9yrs | US$6.20m | 0.084% $6.2m | |
| Lead Independent Director | 1.9yrs | US$316.33k | 0.00071% $52.0k | |
| Independent Director | 12.8yrs | US$236.33k | 0.042% $3.1m | |
| Chairman of the Board | 1.9yrs | US$353.13k | 0.30% $22.1m | |
| Independent Director | 14.4yrs | US$256.33k | 0.023% $1.7m | |
| Independent Director | 17yrs | US$236.33k | 0.031% $2.3m | |
| Independent Director | 8yrs | US$236.33k | 0.033% $2.4m | |
| Chairman Emeritus | 11.2yrs | US$236.33k | 1.15% $84.3m | |
| Independent Director | 9.4yrs | US$262.33k | 0.027% $2.0m | |
| Independent Director | 8yrs | US$248.83k | 0.024% $1.8m |
8.7yrs
Average Tenure
68.5yo
Average Age
Experienced Board: SNX's board of directors are considered experienced (8.7 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 been diluted in the past year, with total shares outstanding growing by 22.9%.
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$7.326b
- Shares outstanding: 51.44m
- Website: https://www.synnexcorp.com
Number of Employees
Location
- SYNNEX Corporation
- 44201 Nobel Drive
- Fremont
- California
- 94538
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SNX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 2003 |
| SUX | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2003 |
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 distributes peripherals; information technology systems, including data center servers and storage solutions; system components; software; networking, communications, and security equipment; consumer electronics; and complementary products. It also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities; logistics services that include outsourced fulfillment, virtual distribution, and direct ship to end-users; cloud services; online services; and financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements. In addition, this segment offers marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and Web-based marketing. This segment serves resellers, system integrators, and retailers. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business outsourcing services focused on customer experience, process optimization, technology innovation, front and back-office automation, and business transformation services. This segment serves clients in various industry verticals, including automotive; banking, financial services, and insurance; energy and public-sector; healthcare; media and communications; retail and e-commerce; technology and consumer electronics; and travel and transportation. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 and is headquartered in Fremont, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:53 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/11/30 |
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.