SYNNEX (SNX) AI Stock Analysis

• Market Cap: $8.65B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.04
• Revenue Growth: 4.62%
• EPS Growth: 16.28%
• Country: US
• Employees: 23,000
• Sector: Technology
• Sector Strength: 55
• Industry: Technology Distributors
• EPS (TTM): 8.00
• Shares Outstanding: 83,921,410
• 10 Day Avg. Volume: 1,756,327
• 30 Day Avg. Volume: 1,329,964
• PEG Ratio: 0.79
• 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: $135.00
• Price Target Upside: 29.56% 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

The company reported fiscal Q1/25 non-GAAP gross billings of $20.7 billion, which exceeded the forecast and the FactSet consensus forecast by 2%.

Investment Rating

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

IT Market Growth

Non-GAAP gross billings/revenue growth is expected to exceed fiscal 2024 growth in fiscal 2025 and fiscal 2026 as the company benefits from an improved IT market.

Negative Factors

Component Shipment Delay

Hyve revenue was below expectations due to a component shipment delay and demand shortfalls, which may last a few quarters.

Earnings Performance

The company reported fiscal Q1/25 non-GAAP EPS of $2.80, which was 4% less than the forecast and the FactSet consensus forecast.

SYNNEX 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 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: 104.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 104.2 is below the 20-day moving average (MA) of 108.52, below the 50-day MA of 124.96, and below the 200-day MA of 120.60, indicating a bearish trend. The MACD of -6.74 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.16 is Neutral, 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	$4.34B	20.43	14.24%	―	-5.17%	-9.73%
AVT	68 Neutral	$4.00B	13.11	6.45%	2.80%	-12.21%	-51.31%
ARW	66 Neutral	$5.22B	13.81	6.78%	―	-15.66%	-54.03%
CNXN	65 Neutral	$1.56B	18.33	9.94%	0.75%	-1.70%	4.45%
SCSC	64 Neutral	$729.95M	12.35	6.79%	―	-15.92%	-25.15%
SNX	61 Neutral	$8.65B	12.88	8.40%	1.59%	4.62%	16.28%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%

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.