NYSE:SNX

Stock Analysis Report

Executive Summary

SYNNEX Corporation provides business process services in the Americas, Asia-Pacific, Europe and Africa.

Snowflake

Fundamentals

Undervalued with mediocre balance sheet.


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


Market Performance


7 Day Return

0.6%

SNX

-2.3%

US Electronic

-0.6%

US Market


1 Year Return

5.2%

SNX

-2.9%

US Electronic

0.6%

US Market

SNX outperformed the Electronic industry which returned -1.9% over the past year.

SNX outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SNXIndustryMarket
7 Day0.6%-2.3%-0.6%
30 Day15.2%4.4%2.2%
90 Day4.2%0.2%1.1%
1 Year6.9%5.2%-1.9%-2.9%2.9%0.6%
3 Year-4.8%-8.2%49.3%45.2%44.6%35.2%
5 Year68.0%59.4%69.8%61.4%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SYNNEX's share price is below the future cash flow value, and at a moderate discount (> 20%).

SYNNEX's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

SYNNEX is good value based on earnings compared to the US Electronic industry average.

SYNNEX is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

SYNNEX is poor value based on expected growth next year.


Price Based on Value of Assets

SYNNEX is good value based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SYNNEX's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

SYNNEX's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).

SYNNEX's revenue growth is positive but not above the United States of America market average.

SYNNEX's earnings growth is positive but not above the United States of America market average.

SYNNEX's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if SYNNEX will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has SYNNEX performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SYNNEX's year on year earnings growth rate has been positive over the past 5 years.

SYNNEX's 1-year earnings growth exceeds its 5-year average (35.3% vs 15.4%)

SYNNEX's earnings growth has not exceeded the US Electronic industry average in the past year (35.3% vs 49.8%).


Return on Equity

SYNNEX has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SYNNEX used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

SYNNEX's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SYNNEX's financial position?


Financial Position Analysis

SYNNEX is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SYNNEX's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SYNNEX's level of debt (99.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.7% vs 99.6% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

0.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SYNNEX's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

SYNNEX's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, SYNNEX has been paying a dividend for less than 10 years.

Dividend payments have increased, but SYNNEX only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.6x coverage).


Future Payout to Shareholders

No need to calculate the sustainability of SYNNEX's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of SYNNEX's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Dennis Polk (52yo)

1.5yrs

Tenure

US$7,174,297

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

Dennis's remuneration is about average for companies of similar size in United States of America.

Dennis's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

53yo

Average Age

The average tenure for the SYNNEX management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

68.5yo

Average Age

The tenure for the SYNNEX board of directors is about average.


Insider Trading

SYNNEX individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$37,05208 Jul 19
Dwight Steffensen
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares366
Max PriceUS$101.24
SellUS$130,48404 Apr 19
Dwight Steffensen
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,295
Max PriceUS$100.76
SellUS$127,73317 Jan 19
Andrea Zulberti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,416
Max PriceUS$90.23
SellUS$473,56915 Jan 19
Kevin Murai
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares6,109
Max PriceUS$78.52
BuyUS$153,06101 Nov 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares2,000
Max PriceUS$77.00
BuyUS$253,30331 Oct 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares3,280
Max PriceUS$78.42
BuyUS$2,98031 Oct 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares40
Max PriceUS$74.50
BuyUS$96,00026 Oct 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares1,200
Max PriceUS$80.00
BuyUS$538,71026 Oct 18
MiTAC Holdings Corporation
EntityCompany
Shares6,900
Max PriceUS$78.10
SellUS$232,86424 Oct 18
Dwight Steffensen
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,869
Max PriceUS$81.19
BuyUS$300,91124 Oct 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares3,809
Max PriceUS$79.00
BuyUS$9,100,17024 Oct 18
MiTAC Holdings Corporation
EntityCompany
Shares113,000
Max PriceUS$80.89
BuyUS$9,564,38223 Oct 18
MiTAC Holdings Corporation
EntityCompany
Shares122,202
Max PriceUS$78.67
BuyUS$9,564,38422 Oct 18
MiTAC Holdings Corporation
EntityCompany
Shares122,202
Max PriceUS$78.27

Ownership Breakdown


Management Team

  • Peter Larocque (57yo)

    President of North American Technology Solutions

    • Tenure: 5.8yrs
    • Compensation: US$2.69m
  • Simon Leung (53yo)

    Senior VP

    • Tenure: 18.3yrs
    • Compensation: US$1.09m
  • Dennis Polk (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$7.17m
  • Chris Caldwell (46yo)

    Executive Vice-President

    • Tenure: 12.5yrs
    • Compensation: US$3.79m
  • Marshall Witt (53yo)

    Chief Financial Officer

    • Tenure: 6.4yrs
    • Compensation: US$1.77m
  • Mike Vaishnav

    Senior VP of Corporate Finance & Treasurer

    • Tenure: 6.7yrs
  • Phyllis Proffer

    Director of Investor Relations

    • Tenure: 0yrs
  • Scott Barker

    Senior Vice President of Wide Format Sales

    • Tenure: 9.7yrs
  • Michael Urban

    President of Worldwide Technology Solutions Distribution

    • Tenure: 0.6yrs
  • Mary Lai

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dwight Steffensen (75yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$291.04k
  • Duane Zitzner (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$211.04k
  • Kevin Murai (55yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$3.96m
  • Greg Quesnel (70yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$231.04k
  • Fred Breidenbach (72yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$211.04k
  • Hau Leung Lee (67yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$211.04k
  • Matthew Miau (72yo)

    Chairman Emeritus

    • Tenure: 10.8yrs
    • Compensation: US$211.04k
  • Dennis Polk (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$7.17m
  • Andrea Zulberti (67yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$237.04k
  • Tom Wurster (66yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$223.54k

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$5.002b
  • Shares outstanding: 51.08m
  • 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

Biography

SYNNEX Corporation provides business process services in the Americas, Asia-Pacific, Europe and Africa. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:48
End of Day Share Price2019/09/20 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.