GICS Sector : Technology
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.
TD SYNNEX reported record third-quarter non-GAAP gross billings of $22.7 billion, a 12% year-over-year increase in constant currency, and non-GAAP diluted earnings per share of $3.58, a 25% increase year-over-year, significantly exceeding expectations of $3.05. Gross profit increased 18% year-over-year to $1.1 billion, with gross margin as a percentage of gross billings expanding 23 basis points year-over-year. The company's strong financial performance was driven by its diversified portfolio, with software gross billings growing 26% year-over-year and PC sales continuing their strong double-digit growth for the third consecutive quarter.
Publication Date: Sep -26
The distribution performance is driven by PCs, software, cybersecurity, and compute, a trend expected to continue into Q4. HIVE benefits from strong hyperscaler spending and demand for its programs, with growth driven by networking and traditional compute. The company is making progress onboarding new customers beyond the initial two, with a healthy and growing pipeline.
For the fourth quarter, TD SYNNEX expects gross billings to be in the range of $23 to $24 billion, representing an increase of approximately 11% at the midpoint. Non-GAAP diluted earnings per share are expected to be in the range of $3.45 to $3.95 per diluted share. The company reiterated its long-term free cash flow conversion rate expectation of 95% and reaffirmed its commitment to its strategic pillars to remain the partner of choice in IT.
With a P/E Ratio of 12.26 and an ROE of 13.48%, the company's valuation appears reasonable. The dividend yield of 1.05% and Free Cash Flow Yield of 3.54% add to the attractiveness of the stock. The Net Debt / EBITDA ratio of 0.35 indicates a healthy balance sheet. Analysts estimate next year's revenue growth at 4.2%, which is relatively modest compared to the company's historical performance.
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Dec -04
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Dec -02
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Nov -28
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Nov -27
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Nov -18
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Nov -14
TD SYNNEX Recognized as the Winner of 2025 Microsoft Global Device Partner of the Year
Nov -13
TD SYNNEX Wins Global and Regional Distributor of the Year Honors at Cisco Partner Summit 2025
Nov -10
TD SYNNEX Corporation's Technology Solutions segment growth is driven by increasing demand for cloud-based services, digital transformation, and cybersecurity solutions. The company's strategic partnerships with leading technology vendors, such as Microsoft and VMware, also contribute to its growth. Additionally, the rising need for IT infrastructure and data analytics solutions among enterprises fuels the segment's expansion.
TD SYNNEX Corporation offers a wide range of IT products, including servers, storage systems, networking equipment, and software from leading manufacturers.
TD SYNNEX provides a variety of mobility and IoT solutions, including smartphones, tablets, laptops, and IoT devices from top manufacturers.
TD SYNNEX offers a range of cloud and security solutions, including cloud infrastructure, cybersecurity, and data protection solutions.
TD SYNNEX provides data center and virtualization solutions, including servers, storage, and virtualization software from leading manufacturers.
TD SYNNEX offers a range of POS and retail solutions, including hardware, software, and services for retailers and hospitality businesses.
TD SYNNEX provides gaming and esports solutions, including gaming PCs, peripherals, and accessories from top manufacturers.
The threat of substitutes for TD SYNNEX Corporation is medium due to the presence of alternative products and services in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.
The bargaining power of customers is low for TD SYNNEX Corporation due to the company's diverse customer base and lack of concentration, making it difficult for individual customers to exert significant pressure.
The bargaining power of suppliers is medium for TD SYNNEX Corporation due to the presence of multiple suppliers, but the company's large scale and diversified supply chain mitigate this threat.
The threat of new entrants is low for TD SYNNEX Corporation due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.
The intensity of rivalry is high for TD SYNNEX Corporation due to the presence of several established competitors in the industry, leading to intense competition for market share.
| Value | |
|---|---|
| Debt Weight | 33.29% |
| Debt Cost | 8.89% |
| Equity Weight | 66.71% |
| Equity Cost | 11.47% |
| WACC | 10.61% |
| Leverage | 49.89% |
Value: 3.0
Growth: 8.8
Quality: 9.0
Yield: 3.0
Momentum: 10.0
Volatility: 6.0
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Value: 6.0
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Yield: 2.0
Momentum: 8.5
Volatility: 7.7
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Yield: 6.0
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Growth: 5.8
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Value: 7.2
Growth: 6.6
Quality: 4.2
Yield: 0.0
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Value: 5.3
Growth: 7.0
Quality: 3.7
Yield: 0.0
Momentum: 0.5
Volatility: 6.3
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