SNX  Synnex Corporation

Exchange

NYSE

Sector

Technology

Industry

EDP Services

Market Cap.

4.43B

Vuru Grade

32.30/100

Current Price

$110.89
-2.09 (-1.85%)

Growth Price

$82.27
Overvalued by 25.81%

Stability Price

$39.32
Overvalued by 64.54%

Company Metrics

  • P/E 17.73
  • P/S 0.31
  • P/B 2.19
  • EPS 6.26
  • Cash ROIC 7.11%
  • Cash Ratio 0.16
  • Dividend 1.00 / 0.90 %
  • Avg. Vol. 191,584.00
  • Shares 39.95M
  • Market Cap. 4.43B

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

Five SYNNEX Corporation Executives Named to CRN's Women of the Channel List ...
PR Newswire (press release) - May 15, 2017
GREENVILLE, S.C., May 15, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading distributor of IT products and services, announced today that CRN, a brand of The Channel Company, has named five of its female executives to its prestigious ...
SYNNEX Corporation Selected by HP Inc. to Distribute the New A3 Printer Portfolio
PR Newswire (press release) - May 8, 2017
GREENVILLE, S.C., May 8, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading Technology Solutions distributor, today announced that it has been selected to distribute HP Inc.'s new A3 multifunction laser printers (MFPs).
Synnex Corp (SNX) Files Form 4 Insider Selling : Dennis Polk Sells 142 Shares - Energy Index
Analysts Expect SYNNEX Co. (SNX) to Announce $1.75 Earnings Per Share - Sports Perspectives
SYNNEX Corporation Selected to Carry Symantec's Complete Product Portfolio
PR Newswire (press release) - Apr 20, 2017
"Symantec's recent acquisition of Blue Coat means our resellers now have access to an unparalleled security portfolio," said Peter Larocque, President, North American Technology Solutions, SYNNEX Corporation. "SYNNEX has been recognized as a leader ...
Ann Vezina Appointed to the SYNNEX Corporation Board of Directors
PR Newswire (press release) - Feb 1, 2017
1, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, announced today the appointment of Ann Vezina to the Company's Board of Directors.
SYNNEX Corporation's (SNX) CEO Kevin Murai on Q4 2016 Results - Earnings Call ...
Seeking Alpha - Jan 11, 2017
Good afternoon and welcome to the SYNNEX Corporation's earnings call for the fiscal 2016 fourth quarter ended November 30, 2016.
Synnex Corp. profit climbs on acquisition - MarketWatch
SYNNEX Corporation Earns Status as Aerohive Networks' First Training Center
PR Newswire (press release) - Mar 28, 2017
AUSTIN, Texas, March 28, 2017 /PRNewswire/ -- (from Varnex Spring Conference) - SYNNEX Corporation (NYSE: SNX), a leading Technology Solutions distributor, today announced that its U.S.
Synnex's (SNX) CEO Kevin Murai on Q1 2017 Results - Earnings Call Transcript - Seeking Alpha
Why SYNNEX Corporation (NYSE: SNX) stock is falling today - FX Daily Report
Is SYNNEX Corporation a Good Stock for Value Investors?
Zacks.com - Jan 27, 2017
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when ...
Expert Picks: BMW Charity Pro-Am presented by SYNNEX Corporation
pgatour.com - May 16, 2017
Here are this week's Expert Picks for the BMW Charity Pro-Am presented by SYNNEX Corporation, to be contested across three courses, including host Thornblade Club, in the Greenville, South Carolina metroplex.
Price Alert: Synnex Corporation (NYSE:SNX) Stock Nears Resistance ...
CML News - May 26, 2017
Price Alert: Synnex Corporation (NYSE:SNX) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
New Age Electronics to Distribute High-Tech DJI Drones to the US Retail and ...
PR Newswire (press release) - May 17, 2017
CARSON, Calif., May 17, 2017 /PRNewswire/ -- New Age Electronics, a leading distributor of consumer electronics and gaming products and services and a division of SYNNEX Corporation (NYSE: SNX), announced today that it has signed an agreement ...
DJI Drones Take Flight With New Age Distribution Deal - Twice
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.

$110.89 Current Price

$82.27 Growth Price (DCF)

Overvalued by 25.81%


Growth Rate Assumed by Market: 15.53%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$39.32 Stability Price (EPV)

Overvalued by 64.54%


Discount Rate: 15.0%

$19.97 NCA Price

Overvalued by 81.99%

$72.05 Book Price

Overvalued by 35.03%


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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