SNX  Synnex Corporation

Exchange

NYSE

Sector

Technology

Industry

EDP Services

Market Cap.

4.74B

Vuru Grade

32.30/100

Current Price

$118.83
-0.99 (-0.83%)

Growth Price

$82.40
Overvalued by 30.66%

Stability Price

$39.38
Overvalued by 66.86%

Company Metrics

  • P/E 20.20
  • P/S 0.34
  • P/B 2.39
  • EPS 5.88
  • Cash ROIC 7.11%
  • Cash Ratio 0.16
  • Dividend 1.00 / 0.84 %
  • Avg. Vol. 189,031.00
  • Shares 39.89M
  • Market Cap. 4.74B

Company Description

SYNNEX Corporation provides distribution and business process outsourcing services to resellers, retailers, and original equipment manufacturers (OEMs). The company operates in two segments, Distribution Services and Global Business Services (GBS). The Distribution Services segment distributes information technology systems, peripherals, system components, software, networking equipment, consumer ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BRIEF-Synnex Corp says CEO Kevin Murai's total compensation in 2016 was $5.1 ...
Reuters - Sep 5, 2012
BRIEF-Synnex Corp says CEO Kevin Murai's total compensation in 2016 was $5.1 mln vs $3.9 mln in 2015. Feb 23 Synnex Corp. * CEO Kevin Murai's total compensation in 2016 was $5.1 million versus $3.9 million in 2015 - SEC filing Source text ...
SYNNEX Corporation Announces Five Executives Named to CRN Channel Chiefs
PR Newswire (press release) - Feb 21, 2017
GREENVILLE, S.C., Feb. 21, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading Technology Solutions distributor, announced today that CRN®, a brand of The Channel Company, has named five SYNNEX executives to its prestigious list of ...
Raritan Signs SYNNEX Corporation as Distributor of Data Center Product Portfolio
PR Newswire (press release) - Feb 20, 2017
20, 2017 /PRNewswire/ -- Raritan® - a brand of Legrand, and a leading provider of intelligent data center management and rack power distribution solutions - today announced a North American distribution agreement with SYNNEX Corporation, a leading ...
SYNNEX Corporation Declares Regular Quarterly Cash Dividend
PR Newswire (press release) - Jan 5, 2017
FREMONT, Calif., Jan. 5, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced its Board of Directors declared a regular quarterly cash dividend of $0.25 per share.
Synnex Corporation (SNX) Moves Higher on Volume Spike for January 04 - Equities.com
Synnex Corporation (SNX) to Issue $0.25 Dividend - Sports Perspectives
Ann Vezina Appointed to the SYNNEX Corporation Board of Directors
Yahoo Finance - Feb 1, 2017
We look forward to her contributions as a member of the SYNNEX Board of Directors," said Duane Zitzner, Chairman of the SYNNEX Corporation Nominating and Corporate Governance Committee. Kevin Murai, President and Chief Executive Officer of ...
SYNNEX Corporation Participating in the 19th Annual Needham Growth Conference
PR Newswire (press release) - Jan 3, 2017
FREMONT, Calif., Jan. 3, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, announced today its plans to participate in the 19th Annual Needham Growth Conference at the Lotte New York Palace Hotel.
Emerald Acquisition Ltd. Sells 43460 Shares of Synnex Corporation (SNX) - Sports Perspectives
SYNNEX Corp. (SNX) to Acquire Minacs in $420M Deal
StreetInsider.com - Jul 11, 2016
SYNNEX Corporation (NYSE: SNX), and Minacs announced a definitive agreement in which SYNNEX will acquire Minacs and integrate it into its Concentrix business segment.
SYNNEX to acquire The Minacs Group Pte Ltd. and integrate with Concentrix - Yahoo Finance
BPO firm Minacs sold to US-based Synnex for $420 million - Economic Times
SYNNEX Corporation Advances to #212 on the Fortune 500 List of Largest Companies
PR Newswire (press release) - Jun 16, 2016
FREMONT, Calif., June 16, 2016 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, announced today that its Fortune 500 ranking of the largest US companies advanced eight positions to #212.
Synnex Corporation (SNX) Moves Lower on Volume Spike for February 10
Equities.com - Feb 10, 2017
Synnex Corporation (SNX) traded on unusually high volume on Feb. 10, as the stock lost 0.84% to close at $118.25. On the day, Synnex Corporation saw 390,325 shares trade hands on 3,059 trades. Considering that the stock averages only a daily volume of ...
Brokerages Set Synnex Corporation (SNX) PT at $122.00 - Community Financial News
The California State Teachers Retirement System Has $7065000 Stake in Synnex ... - DailyQuint
SYNNEX Corporation (NYSE:SNX) Stock Technicals Hit Weakness
CML News - 18 hours ago
This is a technical analysis stock rating for SYNNEX Corporation (NYSE:SNX) . The company has a two bull technical rating which indicates some weakness.
Synnex Corporation (SNX) Stake Raised by Comerica Bank - The Cerbat Gem
The Profund Advisors LLC Has $585000 Position in Synnex Corporation (SNX) - DailyQuint
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SNX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SNX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$118.83 Current Price

$82.40 Growth Price (DCF)

Overvalued by 30.66%


Growth Rate Assumed by Market: 18.38%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$39.38 Stability Price (EPV)

Overvalued by 66.86%


Discount Rate: 15.0%

$20.00 NCA Price

Overvalued by 83.17%

$71.11 Book Price

Overvalued by 40.16%


Poor Cash Return on Invested Capital over the past 5 years

SNX has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

SNX has only created $7.11 of cash for every $100 invested.
Figures in USD. Fiscal year ends in November
20122013201420152016
Free Cash Flow 228.31M 6.74M -292.15M 543.50M 203.72M
divided by
Invested Capital 1.29B 1.37B 1.80B 2.18B 2.36B
Cash ROIC 17.71% 0.49% -16.19% 24.88% 8.63%

Satisfactory Return on Equity over the past 5 years

SNX has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

SNX has generated $11.35 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in November
20122013201420152016
Net Income 152.50M 152.32M 180.15M 208.61M 235.01M
divided by
Stockholders' Equity 1.32B 1.41B 1.65B 1.80B 1.98B
Return on Equity 11.56% 10.79% 10.89% 11.59% 11.89%

Good Business Performance over the past 10 years

It's likely SNX has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is SNX has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

SNX has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Free Cash Flow -175.44M 17.64M 237.03M -78.55M 179.00M 228.31M 6.74M -292.15M 543.50M 203.72M

Weak Balance Sheet

SNX's financial position is not ideal. The key is to check whether SNX is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Cash 60.13M 71.43M 59.04M 99.46M 83.59M 179.63M 166.76M 187.27M 341.62M 385.83M
Current Assets 1.59B 1.73B 1.84B 2.21B 2.44B 2.58B 2.93B 3.90B 3.65B 4.05B
Total Assets 1.89B 2.03B 2.10B 2.50B 2.83B 2.96B 3.33B 4.71B 4.44B 5.22B
Current Liabilities 1.17B 1.13B 1.08B 1.31B 1.37B 1.49B 1.79B 2.72B 1.92B 2.48B
Total Liabilities 1.28B 1.35B 1.28B 1.51B 1.67B 1.64B 1.91B 3.06B 2.64B 3.25B
Stockholder' Equity 604.55M 679.84M 818.37M 992.67M 1.16B 1.32B 1.41B 1.65B 1.80B 1.98B
Current Ratio 1.36 1.52 1.71 1.68 1.78 1.73 1.64 1.43 1.90 1.63
TL-to-TA 0.68 0.67 0.61 0.60 0.59 0.55 0.58 0.65 0.60 0.62

Consistent Reinvestment of Profits over the past 10 years

SNX has consistently retained profits. This may put SNX in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, SNX can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Retained Earnings 379.46M 462.88M 554.97M 679.19M 829.52M 980.90M 1.13B 1.31B 1.49B 1.70B
Retained Earnings Growth - 21.99% 19.89% 22.38% 22.13% 18.25% 15.52% 15.45% 14.21% 13.47%

Highly Competitive Industry over the past 10 years

It's likely that SNX is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely SNX invests heavily in R&D and Sales, General & Administrative expenses.

Only $1.35 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Net Income 63.13M 83.80M 92.09M 128.10M 150.55M 152.50M 152.32M 180.15M 208.61M 235.01M
divided by
Revenue 7.00B 7.77B 7.72B 8.61B 10.41B 10.29B 10.85B 13.84B 13.34B 14.06B
Net Profit Margin 0.90% 1.08% 1.19% 1.49% 1.45% 1.48% 1.40% 1.30% 1.56% 1.67%

Weak Pricing Power over the past 10 years

SNX is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that SNX has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $6.63 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Gross Profit 355.38M 431.92M 423.03M 491.62M 630.50M 656.74M 654.97M 1.10B 1.19B 1.28B
divided by
Revenue 7.00B 7.77B 7.72B 8.61B 10.41B 10.29B 10.85B 13.84B 13.34B 14.06B
Gross Margin 5.07% 5.56% 5.48% 5.71% 6.06% 6.39% 6.04% 7.94% 8.94% 9.12%

Medium Capital Intensity over the past 10 years

SNX has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

30.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Capital Expenditure 22.78M 34.95M 25.01M 12.65M 40.15M 14.48M 28.97M 57.38M 100.11M 123.23M
divided by
Net Income 63.13M 83.80M 92.09M 128.10M 150.55M 152.50M 152.32M 180.15M 208.61M 235.01M
Capital Expenditure Ratio 36.09% 41.71% 27.16% 9.88% 26.67% 9.50% 19.02% 31.85% 47.99% 52.44%

No Dividend History over the past 10 years

SNX has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 32.67M 33.26M 34.01M 35.76M 36.83M 37.91M 37.80M 38.85M 39.35M 39.53M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 19.63 11.30 30.58 31.48 30.46 33.93 67.18 78.10 92.74 121.02
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

SNX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Shares Outstanding 32.67M 33.26M 34.01M 35.76M 36.83M 37.91M 37.80M 38.85M 39.35M 39.53M
Stock Bought Back - -1.77% -2.21% -4.88% -2.92% -2.84% 0.29% -2.69% -1.29% -0.45%
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