Td Synnex Corp (NYSE: SNX)

Sector: Technology Industry: Electronics & Computer Distribution CIK: 0001177394
Market Cap 6.38 Bn
P/B 2.74
P/E 23.20
P/S 0.33
ROIC (Qtr) 8.78
Div Yield % 1.14
Rev 1y % (Qtr) 9.69
Total Debt (Qtr) 4.61 Bn
Debt/Equity (Qtr) 0.55
Add ratio to table...

About

TD SYNNEX Corporation, or SNX, operates as a leading global distributor and solutions aggregator in the information technology (IT) ecosystem. With a history that spans over four decades, the company has grown into a Fortune 100 corporation, managing its operations in three major segments: the Americas, Europe, and Asia-Pacific and Japan (APJ). SNX's primary business activities involve the distribution of IT hardware, software, and systems. These include personal computing devices and peripherals, mobile phones and accessories, printers, server...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 2.44B provide 2.39x coverage of short-term debt 1.02B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.53B provides strong 23.06x coverage of stock compensation 66.43M, indicating sustainable incentive practices.
  • Strong tangible asset base of 26.38B provides 5.72x coverage of total debt 4.61B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.39B exceeds capital expenditure of 142.28M by 9.77x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 26.38B provides 6.09x coverage of working capital 4.33B, indicating strong operational backing.

Bear case

  • Operating cash flow of 1.53B barely covers its investment activities of (221.17M), with a coverage ratio of -6.93, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 2.44B against inventory of 9.50B, the 0.26 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 1.53B provides thin coverage of dividend payments of (146.38M) with a -10.46 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.44B provide limited coverage of acquisition spending of (83.67M), which is -29.11x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Retained earnings of 3.44B provide limited buffer against comprehensive income items of (379.43M), which is -9.06x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Electronics & Computer Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ARW Arrow Electronics, Inc. 7.91 Bn 13.85 0.26 3.09 Bn
2 SNX Td Synnex Corp 6.38 Bn 23.20 0.33 4.61 Bn
3 AVT Avnet Inc 5.42 Bn 26.12 0.23 3.17 Bn
4 NSIT Insight Enterprises Inc 2.61 Bn 16.60 0.32 1.36 Bn
5 CNXN Pc Connection Inc 1.63 Bn 18.18 0.51 0.00 Bn
6 SCSC Scansource, Inc. 0.82 Bn 11.15 0.27 0.10 Bn
7 CLMB Climb Global Solutions, Inc. 0.51 Bn 80.43 1.89 0.00 Bn
8 IZM ICZOOM Group Inc. 0.01 Bn 10.40 0.07 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.23 0.78
EV to Cash from Ops. EV/CFO 36.16 117.90
EV to Debt EV to Debt 1.70 438.44
EV to EBIT EV/EBIT 15.54 15.47
EV to EBITDA EV/EBITDA 11.10 13.22
EV to Free Cash Flow [EV/FCF] EV/FCF 67.70 113.72
EV to Market Cap EV to Market Cap 1.23 1.17
EV to Revenue EV/Rev 0.41 0.54
Price to Book Value [P/B] P/B 2.74 2.70
Price to Earnings [P/E] P/E 23.20 21.87
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.65 2.26
Dividend Payout Ratio % Div Payout % (Qtr) 17.60 11.51
Dividend per Basic Share Div per Share (Qtr) 1.80 0.49
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 10.64 10.45
Interest Coverage Int. cover (Qtr) 3.96 -0.62
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -7.61 9.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 129.89 97.84
Dividend Growth (1y) % Div 1y % (Qtr) 9.76 6.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.34 -1,335.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.20 -783.61
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.26 -8,097.95
EBT Growth (1y) % EBT 1y % (Qtr) 22.08 -8,103.00
EPS Growth (1y) % EPS 1y % (Qtr) 25.03 22.53
FCF Growth (1y) % FCF 1y % (Qtr) 28.00 -1,628.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.74 3.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.83 2.10
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.07
Cash Ratio Cash Ratio (Qtr) 0.12 0.63
Current Ratio Curr Ratio (Qtr) 1.21 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.55 0.40
Interest Cover Ratio Int Coverage (Qtr) 3.96 -0.62
Times Interest Earned Times Interest Earned (Qtr) 3.96 -0.62
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.90 0.27
EBIT Margin % EBIT Margin % (Qtr) 2.26 -0.41
EBT Margin % EBT Margin % (Qtr) 1.69 -0.82
Gross Margin % Gross Margin % (Qtr) 7.00 12.10
Net Profit Margin % Net Margin % (Qtr) 1.30 -1.39