TD SYNNEX (NYSE:SNX) - Share price, News & Analysis

SNX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	2/6
Financial Health	3/6
Dividends	1/6

SNX Stock Overview

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

Rewards

Trading at 50.4% below our estimate of its fair value

Earnings are forecast to grow 41.6% per year

Earnings have grown 12.8% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

Profit margins (1%) are lower than last year (1.7%)

TD SYNNEX Competitors

CDW

NasdaqGS:CDW

US$22.1b

Arrow Electronics

NYSE:ARW

US$8.1b

Insight Enterprises

NasdaqGS:NSIT

US$3.5b

ePlus

NasdaqGS:PLUS

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for TD SYNNEX
Historical stock prices
Current Share Price	US$96.50
52 Week High	US$130.93
52 Week Low	US$93.49
Beta	1.5
1 Month Change	-7.71%
3 Month Change	-7.74%
1 Year Change	-21.08%
3 Year Change	3.50%
5 Year Change	-14.59%
Change since IPO	579.58%

Recent News & Updates

May 03

Is TD SYNNEX Corporation (NYSE:SNX) Trading At A 47% Discount?

In this article we are going to estimate the intrinsic value of TD SYNNEX Corporation ( NYSE:SNX ) by taking the...

Shareholder Returns

	SNX	US Electronic	US Market
7D	0.6%	0.7%	0.1%
1Y	-21.1%	-15.2%	-12.7%

Return vs Industry: SNX underperformed the US Electronic industry which returned -13.5% over the past year.

Return vs Market: SNX underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is SNX's price volatile compared to industry and market?
SNX volatility
SNX Average Weekly Movement	5.0%
Electronic Industry Average Movement	7.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: SNX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SNX's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	22,000	Rich Hume	https://www.tdsynnex.com

TD SYNNEX Corporation provides business process services in the United States and internationally. The company distributes PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, consumer electronics, information technology (“IT”) systems including data center server 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 comprise 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.

TD SYNNEX Fundamentals Summary

How do TD SYNNEX's earnings and revenue compare to its market cap?
SNX fundamental statistics
Market Cap	US$9.42b
Earnings (TTM)	US$435.54m
Revenue (TTM)	US$42.15b

21.3x

P/E Ratio

0.2x

P/S Ratio

Is SNX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNX income statement (TTM)
Revenue	US$42.15b
Cost of Revenue	US$39.59b
Gross Profit	US$2.55b
Other Expenses	US$2.12b
Earnings	US$435.54m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.53
Gross Margin	6.06%
Net Profit Margin	1.03%
Debt/Equity Ratio	63.2%

How did SNX perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

17%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SNX ($96.5) is trading below our estimate of fair value ($194.45)

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

Price To Earnings Ratio

PE vs Industry: SNX is poor value based on its PE Ratio (21.3x) compared to the US Electronic industry average (15.9x).

PE vs Market: SNX is poor value based on its PE Ratio (21.3x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: SNX is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: SNX is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (1.8x).

Future Growth

How is TD SYNNEX forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNX's forecast earnings growth (41.6% per year) is above the savings rate (1.9%).

Earnings vs Market: SNX's earnings (41.6% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SNX's revenue (8.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: SNX's revenue (8.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SNX's Return on Equity is forecast to be low in 3 years time (12.9%).

Past Performance

How has TD SYNNEX performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNX has a large one-off loss of $205.5M impacting its February 28 2022 financial results.

Growing Profit Margin: SNX's current net profit margins (1%) are lower than last year (1.7%).

Past Earnings Growth Analysis

Earnings Trend: SNX's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: SNX's earnings growth over the past year (25%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: SNX earnings growth over the past year (25%) underperformed the Electronic industry 34.8%.

Return on Equity

High ROE: SNX's Return on Equity (5.5%) is considered low.

Financial Health

How is TD SYNNEX's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNX's short term assets ($18.9B) exceed its short term liabilities ($15.2B).

Long Term Liabilities: SNX's short term assets ($18.9B) exceed its long term liabilities ($5.5B).

Debt to Equity History and Analysis

Debt Level: SNX's net debt to equity ratio (56.9%) is considered high.

Reducing Debt: SNX's debt to equity ratio has increased from 49.8% to 63.2% over the past 5 years.

Debt Coverage: SNX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SNX's interest payments on its debt are well covered by EBIT (5.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SNX's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: SNX's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (4.07%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.8%), SNX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SNX is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

1.1yrs

Average management tenure

CEO

Rich Hume (61 yo)

0.67

Tenure

US$10,304,748

Compensation

Mr. Richard T. Hume, also known as Rich, serves as Chief Executive Officer & Director of Tech Data Corp. since June 06, 2018. He serves as CEO, President & Director at TD SYNNEX since September 01, 2021. H...

CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD10.30M) is about average for companies of similar size in the US market ($USD8.19M).

Compensation vs Earnings: Insufficient data to compare Rich's compensation with company performance.

Leadership Team

Experienced Management: SNX's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Experienced Board: SNX's board of directors are considered experienced (7.2 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 been substantially diluted in the past year, with total shares outstanding growing by 85.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/02/28
Annual Earnings	2021/11/30