TD SYNNEX Corp (SNX) stock analysis

P/E below its 5-year median

Td Synnex's P/E of 14.7 is below its own 5-year median of 16.1.

P/E below the industry

Td Synnex's P/E of 14.7 is below the Professional and Commercial Equipment and Supplies median of 20.0.

EV/EBITDA above its 5-year median

Td Synnex's EV/EBITDA of 9.7 is above its 5-year median of 9.1.

P/B below the industry

Td Synnex's price-to-book of 2.07 is below the Professional and Commercial Equipment and Supplies median of 2.23.

Trading below fair value

The share price of $240.86 is below our fair value estimate of $247.87.

Margin of safety under 20%

The price is 2.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 13.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 71.3% over the last twelve months, against a 5-year average of 9.4% a year.

Growing faster than the industry

Revenue grew 24.1% over the last twelve months; the Professional and Commercial Equipment and Supplies median is 13.1%.

Guidance lowered

Td Synnex lowered its Q4 2026 Non-GAAP net income outlook on Sep 24, 2026.

Gross margin slipping

Gross margin was 6.9% over the last twelve months, against 6.9% a year earlier.

Return on equity under 15%

Return on equity was 14.9% over the last twelve months and averaged 8.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 12.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Td Synnex's return on equity of 14.9% is above the Professional and Commercial Equipment and Supplies median of 10.9%.

Earnings grew over 5 years

Net income grew 9.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 1.8% over the last twelve months, against a 5-year average of 1.2%.

Net margin below the industry

Td Synnex's net margin of 1.8% is below the Professional and Commercial Equipment and Supplies median of 1.8%.

High debt

Debt is 59.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 37.4% five years ago to 59.4%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -11.2% of total debt; we look for at least 20%.

Interest well covered

Operating income covers interest expense 6.4 times.

Short-term assets cover short-term debts

Current assets are 1.19 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.62; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Td Synnex paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Td Synnex yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 11.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.