SYNNEX (SNX) AI Stock Analysis

• Market Cap: $8.95B
• Dividend Yield: 1.54%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.03
• Revenue Growth: 4.62%
• EPS Growth: 16.28%
• Country: US
• Employees: 23,000
• Sector: Technology
• Sector Strength: 40
• Industry: Technology Distributors
• EPS (TTM): 8.00
• Shares Outstanding: 83,921,410
• 10 Day Avg. Volume: 2,168,679
• 30 Day Avg. Volume: 1,179,229
• PEG Ratio: 0.82
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.18
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $142.00
• Price Target Upside: 39.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

TD SYNNEX's overall score reflects its solid revenue growth and strategic expansions, tempered by significant cash flow challenges and a bearish technical outlook. The stock's reasonable valuation and moderate dividend yield offer some appeal, but operational pressures, particularly in cash management, remain a concern.

Positive Factors

Financial Performance

Non-GAAP gross billings exceed forecasts, driven by an 8% increase in endpoint solutions and a 7% increase in advanced solutions.

Investment Rating

Analyst's recommendation on SNX shares remains OUTPERFORM with an increased 12-month price target of $156, indicating confidence in future growth.

Market Growth

SNX grew faster than the overall IT distribution market which itself grew in Europe and North America.

Negative Factors

Earnings Performance

Earnings miss forecasts, with fiscal Q1/25 non-GAAP EPS being 4% less than expected.

Revenue Concerns

Hyve shortfall impacts non-GAAP gross billings/revenue due to a component shipment delay and demand shortfalls, which may last a few quarters.

SYNNEX Business Overview & Revenue Model

Company Description

TD SYNNEX Corporation is a leading global distributor and solutions aggregator for the IT ecosystem. It operates in the technology sector, providing a wide array of products and services, including IT distribution, logistics, and integration services. The company serves a broad range of industries, offering solutions in data center, cloud, cybersecurity, big data, analytics, and IoT, catering to both small businesses and large enterprises.

How the Company Makes Money

TD SYNNEX Corporation generates revenue primarily through its extensive distribution network, which facilitates the sale of technology products from major manufacturers and vendors to resellers, systems integrators, and service providers. The company earns money by purchasing IT products at wholesale prices and selling them to customers at a markup. Additionally, TD SYNNEX provides value-added services such as logistics, integration, and supply chain management, which contribute to its earnings. The company also leverages strategic partnerships with leading technology firms to enhance its product offerings and expand its market reach, further driving revenue.

SYNNEX Financial Statement Overview

Summary

TD SYNNEX Corporation shows solid revenue growth and a stable financial structure with strengths in gross profit margins and manageable debt levels. However, the company faces challenges in converting earnings into cash, as evidenced by negative free cash flow and a low operating cash flow to net income ratio. Continued focus on enhancing cash flow efficiency and cost management will be crucial for future financial health.

Income Statement

TD SYNNEX has shown strong revenue growth over the years with a notable increase in TTM revenue to $59.01 billion. The gross profit margin is healthy at 6.55% for the TTM, indicating good control over production costs. The net profit margin stands at 1.16%, which, while positive, suggests room for improvement in cost management and efficiency. The EBIT and EBITDA margins are stable at 2.09% and 2.37%, respectively, reflecting consistent operational performance.

Balance Sheet

The company's balance sheet exhibits a moderate debt-to-equity ratio of 0.07, indicating manageable leverage. With an equity ratio of 27.95%, TD SYNNEX maintains a solid capital structure. The return on equity is 8.50%, showcasing decent profitability relative to shareholder investments. Overall, the company's financial stability is supported by a strong equity base, although there's potential for improving asset efficiency.

Cash Flow

The cash flow statement reveals challenges in free cash flow generation, as shown by a negative free cash flow in the TTM. The operating cash flow to net income ratio is 0.12, indicating weaker cash conversion efficiency. The free cash flow to net income ratio is negative, highlighting potential issues with cash outflows. While the company has had positive operating cash flow historically, recent trends suggest the need for improved cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
59.01B	58.45B	57.56B	62.34B	31.61B	19.98B
	Gross Profit
3.87B	3.98B	3.96B	3.90B	1.89B	1.19B
	EBIT
1.23B	1.19B	1.08B	808.66M	623.22M	521.34M
	EBITDA
1.40B	1.19B	1.51B	1.49B	731.90M	593.83M
	Net Income Common Stockholders
684.50M	689.09M	626.91M	651.31M	395.07M	334.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
541.86M	1.06B	1.03B	522.60M	993.97M	1.41B
	Total Assets
28.80B	30.27B	29.41B	29.73B	27.67B	13.47B
	Total Debt
590.96M	171.09M	4.08B	4.10B	4.14B	1.62B
	Net Debt
49.09M	-888.29M	3.05B	3.58B	3.14B	209.64M
	Total Liabilities
20.75B	22.24B	21.23B	21.71B	19.76B	9.13B
	Stockholders Equity
8.05B	8.04B	8.18B	8.03B	7.91B	4.34B
Cash Flow		Free Cash Flow
-90.53M	1.04B	1.26B	-166.65M	754.89M	1.64B
	Operating Cash Flow
85.02M	1.22B	1.41B	-49.60M	809.79M	1.83B
	Investing Cash Flow
-170.46M	-193.84M	-156.41M	-115.51M	-952.35M	-209.50M
	Financing Cash Flow
-353.30M	-953.10M	-785.88M	-275.59M	-392.62M	-291.70M

SYNNEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNX, the sentiment is Negative. The current price of 101.85 is below the 20-day moving average (MA) of 114.11, below the 50-day MA of 128.49, and below the 200-day MA of 121.35, indicating a bearish trend. The MACD of -7.21 indicates Positive momentum. The RSI at 18.91 is Positive, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNX.

SYNNEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSIT	73 Outperform	$4.43B	21.29	14.24%	―	-5.17%	-9.73%
AVT	68 Neutral	$4.01B	13.15	6.45%	3.13%	-12.21%	-51.31%
ARW	66 Neutral	$5.24B	13.29	6.78%	―	-15.66%	-54.03%
CNXN	65 Neutral	$1.59B	18.68	9.94%	0.73%	-1.70%	4.45%
SCSC	64 Neutral	$754.35M	12.22	6.79%	―	-15.92%	-25.15%
SNX	61 Neutral	$8.95B	13.32	8.40%	1.54%	4.62%	16.28%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%

SYNNEX Corporate Events

TD SYNNEX Announces Board Member Hau Lee’s Retirement

On January 8, 2025, TD SYNNEX Corporation announced that Hau Lee will retire from its Board of Directors at the expiration of his current term, effective at the company’s 2025 Annual Meeting of Stockholders. Lee, a member of the board since 2012, has been praised for his leadership and contributions to the company’s success. The meeting is scheduled for April 2, 2025, in Greenville, South Carolina, where shareholders of record as of February 3, 2025, will be able to vote on matters at the meeting.