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 a strong financial performance for the fourth quarter and full year of fiscal 2025, with non-GAAP gross billings reaching $24.3 billion, a 15% year-over-year increase, and non-GAAP diluted earnings per share of $3.83, up 24% year-over-year. The company's net revenue stood at $17.4 billion, a 10% year-over-year increase, while gross profit was $1.2 billion, up 15% year-over-year. Non-GAAP operating income was $497 million, an 18% year-over-year increase. The actual EPS of $3.83 beat estimates of $3.68, indicating a positive surprise.
Publication Date: Jan -09
The company's business, excluding HIVE, saw gross billings increase by 10% year-over-year, while HIVE grew its gross billings by more than 50%. HIVE's growth was driven by investments in leadership, engineering, and capabilities, with strong growth in supply chain services. The company's omnichannel engagement and specialized go-to-market strategies contributed to its success.
For the first quarter of fiscal 2026, TD SYNNEX expects non-GAAP gross billings of $22.7 billion to $23.7 billion and non-GAAP diluted earnings per share of $3 to $3.5. The guidance reflects a 12% billings growth, despite potential end-market demand destruction from higher component costs. The company remains focused on delivering long-term value to shareholders through stable growth, margin expansion, and consistent cash generation.
With a P/E Ratio of 14.38 and an EV/EBITDA of 5.93, the company's valuation appears reasonable. The ROE of 9.94% and ROIC of 7.78% indicate a decent return on equity and invested capital. The Free Cash Flow Yield of 11.34% is also attractive, suggesting a potential upside. Analysts estimate next year's revenue growth at 4.0%, which is relatively modest compared to the company's historical performance.
The PC market is expected to continue growing, driven by commercial refresh and AI-compatible upgrades. TD SYNNEX is confident about the prospects of the PC market, with AIPCs performing well. The company's progress in winning new programs and potentially new customers for HIVE is also a positive sign. Overall, the company's strong financial performance, diversified business, and growth prospects make it an attractive investment opportunity.
Vanguard 0-3 Month Treasury Bill ETF: A Key Addition in Steven Scruggs' Portfolio
Feb -02
Richard Hume Sells 12,991 Shares of TD SYNNEX (NYSE:SNX) Stock
Feb -01
Richard Hume Sells 25,000 Shares of TD SYNNEX (NYSE:SNX) Stock
Feb -01
Thrivent Financial for Lutherans Boosts Stake in TD SYNNEX Corporation $SNX
Feb -01
Iterate.ai, TD SYNNEX and HPE Launch AI-Powered Solution to Help Hospitals Reclaim Millions in Lost Insurance Revenue
Jan -29
Hyve Solutions Announces Leadership Transition
Jan -27
DLT Solutions Achieves CMMC Level 2 Certification, Strengthening Secure Supply Chain Support for the Public Sector
Jan -27
Dialpad and TD SYNNEX Partner to Bring Agentic AI Communications to Global Markets
Jan -22
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: 3.7
Growth: 8.8
Quality: 9.0
Yield: 3.0
Momentum: 9.5
Volatility: 5.7
1-Year Total Return ->
Value: 6.1
Growth: 5.6
Quality: 4.4
Yield: 2.0
Momentum: 8.0
Volatility: 8.3
1-Year Total Return ->
Value: 7.3
Growth: 5.4
Quality: 3.2
Yield: 6.0
Momentum: 3.0
Volatility: 8.0
1-Year Total Return ->
Value: 5.6
Growth: 5.7
Quality: 6.0
Yield: 2.0
Momentum: 2.5
Volatility: 8.7
1-Year Total Return ->
Value: 6.7
Growth: 6.6
Quality: 3.9
Yield: 0.0
Momentum: 4.0
Volatility: 7.7
1-Year Total Return ->
Value: 7.0
Growth: 6.9
Quality: 4.3
Yield: 0.0
Momentum: 1.0
Volatility: 6.3
1-Year Total Return ->