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 acceptable 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


Market Performance


7 Day Return

2.6%

SNX

4.0%

US Electronic

1.8%

US Market


1 Year Return

48.7%

SNX

13.3%

US Electronic

7.3%

US Market

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

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


Shareholder returns

SNXIndustryMarket
7 Day2.6%4.0%1.8%
30 Day20.4%1.1%-0.7%
90 Day22.4%4.2%0.06%
1 Year50.9%48.7%14.4%13.3%9.7%7.3%
3 Year15.8%11.5%54.7%50.4%46.3%36.9%
5 Year91.4%81.4%88.7%79.6%64.5%46.5%

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

Undervalued: SNX ($116.72) is trading below our estimate of fair value ($570.08)

Significantly Undervalued: 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 (13.3x) compared to the Electronic industry average (19.2x).

PE vs Market: SNX is good value based on its PE Ratio (13.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNX's forecast earnings growth (11.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SNX's earnings (11.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: SNX's revenue (1.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SNX's revenue (1.6% 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 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?

16.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SNX's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: SNX's earnings growth over the past year (59.8%) exceeds its 5-year average (16.7% per year).

Earnings vs Industry: SNX earnings growth over the past year (59.8%) exceeded the Electronic industry 58.6%.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

ROCE Improving: SNX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SYNNEX's financial position?


Financial Position Analysis

Short Term Liabilities: SNX's short term assets ($7.2B) exceeds its short term liabilities ($4.6B)

Long Term Liabilities: SNX's short term assets (7.2B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: SNX's debt to equity ratio (92.4%) is considered high

Reducing Debt: SNX's debt to equity ratio has increased from 61.6% to 92.4% over the past 5 years.

Debt Coverage: SNX's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: SNX's interest payments on its debt are well covered by EBIT (5.6x 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 2.163720x debt).


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SNX's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SNX's dividend (1.29%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (16.8%), 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

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

6.6yrs

Average management tenure


CEO

Dennis Polk (52yo)

1.6yrs

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

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

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


Management Age and Tenure

6.6yrs

Average Tenure

53yo

Average Age

Experienced Management: SNX's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: SNX's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$829,52203 Oct 19
Peter Larocque
EntityIndividual
Role
Unit President
President of North American Technology Solutions
Shares7,401
Max PriceUS$115.28
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$538,71026 Oct 18
MiTAC Holdings Corporation
EntityCompany
Shares6,900
Max PriceUS$78.10
BuyUS$96,00026 Oct 18
Feng-Chiang Miau
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares1,200
Max PriceUS$80.00
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

Ownership Breakdown


Management Team

  • Peter Larocque (57yo)

    President of North American Technology Solutions

    • Tenure: 5.9yrs
    • Compensation: US$2.69m
  • Simon Leung (53yo)

    Senior VP

    • Tenure: 18.4yrs
    • Compensation: US$1.09m
  • Dennis Polk (52yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$7.17m
  • Chris Caldwell (46yo)

    Executive Vice-President

    • Tenure: 12.6yrs
    • Compensation: US$3.79m
  • Marshall Witt (53yo)

    Chief Financial Officer

    • Tenure: 6.5yrs
    • Compensation: US$1.77m
  • Mike Vaishnav

    Senior VP of Corporate Finance & Treasurer

    • Tenure: 6.8yrs
  • Phyllis Proffer

    Director of Investor Relations

    • Tenure: 0yrs
  • Scott Barker

    Senior Vice President of Wide Format Sales

    • Tenure: 9.8yrs
  • Michael Urban

    President of Worldwide Technology Solutions Distribution

    • Tenure: 0.7yrs
  • Mary Lai

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dwight Steffensen (75yo)

    Lead Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$291.04k
  • Duane Zitzner (71yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$211.04k
  • Kevin Murai (55yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$1.50m
  • Greg Quesnel (70yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$231.04k
  • Fred Breidenbach (72yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$211.04k
  • Hau Leung Lee (67yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$211.04k
  • Matthew Miau (72yo)

    Chairman Emeritus

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

    President

    • Tenure: 1.6yrs
    • Compensation: US$7.17m
  • Andrea Zulberti (67yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$237.04k
  • Tom Wurster (66yo)

    Independent Director

    • Tenure: 7.7yrs
    • 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$5.961b
  • 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 Analysis2019/10/18 23:50
End of Day Share Price2019/10/18 00:00
Earnings2019/08/31
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.