TD SYNNEX Corporation (SNX) AI Stock Analysis

• Market Cap: $11.64B
• Dividend Yield: 1.24%
• Average Volume (3M): 877.88K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.07
• Revenue Growth: 6.60%
• EPS Growth: 19.93%
• Country: US
• Employees: 23,000
• Sector: Technology
• Sector Strength: 89
• Industry: Technology Distributors
• EPS (TTM): 2.99
• Shares Outstanding: 82,467,080
• 10 Day Avg. Volume: 1,155,093
• 30 Day Avg. Volume: 877,879
• PEG Ratio: 1.79
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.99
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 1.90
• 1Y Price Target: $147.70
• Price Target Upside: 4.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $156.00 ▲(10.25%Upside)

TD SYNNEX Corporation's stock is supported by strong financial performance and a positive earnings outlook, despite technical signals suggesting potential overbought conditions. The company's healthy cash flow and effective debt management contribute positively, while macroeconomic uncertainties and valuation metrics provide a balanced view.

Positive Factors

Financial Performance

SNX reported billings, revenue, and EPS above the high end of guidance driven by broad-based strength across its customer segments including SMB, MSPs, and the public sector.

Growth Prospects

Software saw billings grow 20% year over year driven by strength in cloud, cybersecurity, and infrastructure software.

Market Position

TD Synnex is one of the more compelling long-term secular beneficiaries in the IT Hardware space given broad reach across the IT spending landscape with nearly 70% exposure to faster-growing data center-oriented technologies.

Negative Factors

Earnings Forecast

Reducing fiscal 2025/2026 EPS forecasts due to the current economic environment.

Guidance

Management guided billings growth for the next quarter lower, which is considered conservative given the company is not seeing a slowdown in demand, but rather being prudent due to uncertain macroeconomic conditions and potential tariff impacts.

TD SYNNEX Corporation Business Overview & Revenue Model

Company Description

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. In addition, the company 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. It serves resellers, system integrators, and retailers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was incorporated in 1980 and is headquartered in Fremont, California.

How the Company Makes Money

TD SYNNEX Corporation generates revenue primarily through the distribution of IT products and solutions, acting as an intermediary between technology vendors and a wide network of resellers and service providers. The company earns money by purchasing products from manufacturers and selling them at a markup to its customers, which include value-added resellers, system integrators, and other technology service providers. Key revenue streams include the sale of hardware such as computers, peripherals, and networking equipment, as well as software and cloud solutions. Additionally, TD SYNNEX offers a variety of services, including logistics and supply chain management, which contribute to its earnings. The company also benefits from strategic partnerships with major technology vendors, which enhance its product offerings and market reach.

TD SYNNEX Corporation Financial Statement Overview

Summary

TD SYNNEX Corporation demonstrates a strong financial position with solid profit margins, effective debt management, and healthy cash flow generation. The company's revenue growth and improved profitability metrics indicate effective cost control, despite a slight dip in cash flow growth.

Income Statement

TD SYNNEX Corporation's income statement reveals a strong financial performance with a gross profit margin of 6.74% and an improving net profit margin of 1.54% in TTM, up from 1.18% in the previous year. The revenue growth rate of 2.66% in TTM suggests steady expansion. The company shows a consistent EBIT margin of 2.10% and an EBITDA margin of 1.83%. The improvement in margins and revenue growth indicates robust operational efficiency and profitability.

Balance Sheet

The balance sheet of TD SYNNEX Corporation is solid, with a debt-to-equity ratio of 0.05 in TTM, significantly reduced from prior periods, indicating a strong deleveraging effort. The return on equity (ROE) has improved to 11.11%, reflecting better utilization of shareholders' equity for profitability. The equity ratio stands at 27.34%, suggesting a moderate reliance on equity financing. Overall, the company has a stable financial position with a notable reduction in leverage.

Cash Flow

TD SYNNEX Corporation's cash flow analysis shows a positive trajectory with a free cash flow growth rate of -41.99%, which although negative, is due to prior exceptional cash flow levels rather than operational issues. The operating cash flow to net income ratio of 0.83 indicates efficient cash conversion, and a free cash flow to net income ratio of 0.65 represents solid cash generation relative to net profits. The company maintains a healthy cash flow profile despite a slight decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.01B	58.45B	57.56B	62.34B	31.61B	19.98B
Gross Profit	4.05B	3.98B	3.96B	3.90B	1.89B	1.19B
EBITDA	1.10B	1.59B	1.50B	1.51B	775.98M	856.81M
Net Income	926.82M	689.09M	626.91M	651.31M	395.07M	529.16M
Balance Sheet
Total Assets	30.51B	30.27B	29.41B	29.73B	27.67B	13.47B
Cash, Cash Equivalents and Short-Term Investments	767.10M	1.06B	1.03B	522.60M	993.97M	1.41B
Total Debt	382.43M	4.40B	4.08B	4.10B	4.14B	1.81B
Total Liabilities	22.17B	22.24B	21.23B	21.71B	19.76B	9.13B
Stockholders Equity	8.34B	8.04B	8.18B	8.03B	7.91B	4.34B
Cash Flow
Free Cash Flow	604.94M	1.04B	1.26B	-166.65M	754.89M	1.64B
Operating Cash Flow	772.91M	1.22B	1.41B	-49.60M	809.79M	1.83B
Investing Cash Flow	-164.12M	-193.84M	-156.41M	-115.51M	-952.35M	-209.50M
Financing Cash Flow	-1.06B	-953.10M	-785.88M	-275.59M	-392.62M	-291.70M

TD SYNNEX Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNX, the sentiment is Positive. The current price of 141.5 is above the 20-day moving average (MA) of 132.46, above the 50-day MA of 125.02, and above the 200-day MA of 123.18, indicating a bullish trend. The MACD of 4.89 indicates Negative momentum. The RSI at 73.74 is Negative, neither overbought nor oversold. The STOCH value of 89.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNX.

TD SYNNEX Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	78 Outperform	$11.64B	16.49	8.83%	1.24%	6.60%	19.93%
CNXN	75 Outperform	$1.70B	20.29	10.11%	0.90%	4.21%	6.38%
ARW	74 Outperform	$6.85B	18.25	6.68%	―	-11.13%	-43.00%
NSIT	71 Outperform	$4.63B	29.10	11.37%	―	-8.73%	-35.37%
AVT	68 Neutral	$4.72B	15.77	6.42%	2.35%	-10.52%	-42.40%
SCSC	67 Neutral	$951.95M	15.34	7.32%	―	-14.07%	-9.65%
Sector *	50 Neutral	AU$1.51B	2.03	-28.25%	3.29%	16.21%	-7.40%

TD SYNNEX Corporation 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.