Synnex Corp

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SNX : NYSE : Services
$108.43 | %
Today's Range: 108.01 - 109.68
Avg. Daily Volume: 190400.0
04/28/17 - 4:02 PM ET

Financial Analysis


SYNNEX CORP's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SYNNEX CORP has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)3520.873125.62
EBITDA ($mil)138.32102.81
EBIT ($mil)102.3776.63
Net Income ($mil)61.7946.56


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)218.68487.89
Total Assets ($mil)5107.774183.7
Total Debt ($mil)1009.25703.12
Equity ($mil)2038.221820.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin10.739.93
EBITDA Margin3.923.28
Operating Margin2.912.45
Sales Turnover2.833.17
Return on Assets4.894.98
Return on Equity12.2711.46
Debt Q1 FY17 Q1 FY16
Current Ratio1.682.08
Debt/Capital0.330.28
Interest Expense8.556.63
Interest Coverage11.9711.55


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)39.5239.24
Div / share0.250.2
EPS1.541.17
Book value / share51.5846.4
Institutional Own % n/a n/a
Avg Daily Volume190528.0198411.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 29.22 for the Electronic Equipment, Instruments & Components industry and a discount compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 2.09 indicates a discount versus the S&P 500 average of 2.99 and a discount versus the industry average of 3.18. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SYNNEX CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SNX 17.22 Peers 29.22   SNX NM Peers 17.33

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SNX is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SNX's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SNX 12.81 Peers 19.56   SNX 0.51 Peers 1.17

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SNX is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SNX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNX 2.09 Peers 3.18   SNX 19.27 Peers 21.78

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SNX is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SNX is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNX 0.29 Peers 3.38   SNX 9.01 Peers 5.16

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SNX is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SNX has a sales growth rate that significantly exceeds its peers.

 

 

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