Is SNX a strong long-term investment now?

**TD SYNNEX (SNX) exhibits both promising long-term potential and current challenges**, making it a complex case for immediate investment consideration. Here's a detailed analysis:

1. **Financial Performance and Growth**:
- SNX's revenue has shown a modest growth rate of 3.98%, with a total revenue of $14.53 billion. The net income has slightly declined by -2.67%, resulting in $167.54 million, and the diluted EPS growth rate is at 2.59%, with the latest EPS being $1.98.
- The company's 3-year CAGRs indicate a decline in revenue (-3.17%) and a modest increase in net income (2.86%) and diluted EPS (8.37%).

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|SNX|SNX.N|TD SYNNEX|2024 Q2|7.903100979058811|-0.8122243837417449|17.73049645390071|169|
|SNX|SNX.N|TD SYNNEX|2024 Q3|28.215880857663972|5.186712763012231|39.597315436241615|169|
|SNX|SNX.N|TD SYNNEX|2024 Q4|3.8711328662379625|9.975890010248968|11.16504854368932|169|
|SNX|SNX.N|TD SYNNEX|2025 Q1|-2.6672011526306005|3.981709669227455|2.5906735751295358|169|

2. **Market Position and Strategic Initiatives**:
- SNX is a leading global distributor and solutions aggregator, with a strong market presence. The company has expanded its partnership with Lantronix to distribute its solutions throughout Europe, which is expected to increase market presence and growth.
- Despite challenges, SNX has demonstrated solid billing growth and is well-positioned to capitalize on the growing demand for advanced IT solutions.
3. **Valuation Metrics**:
- The P/E ratio stands at 12.72, which suggests the stock may be undervalued. The P/S ratio is 0.15, indicating a lean valuation on sales, and the P/B ratio is 1.08, suggesting a reasonable valuation based on book value.
- Dividend yield is at 1.62%, providing an additional return for income-focused investors.

|code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|---|
|SNX|SNX.N|TD SYNNEX|20240331|3.8774858666688132||169|
|SNX|SNX.N|TD SYNNEX|20240401|3.8774858666688132|1.353886819230087|169|
|SNX|SNX.N|TD SYNNEX|20240402|3.8774858666688132|1.3109782702052737|169|
|SNX|SNX.N|TD SYNNEX|20240403|3.8774858666688132|1.2910191998646705|169|
|SNX|SNX.N|TD SYNNEX|20240404|3.8774858666688132|1.301698789015862|169|
|SNX|SNX.N|TD SYNNEX|20240405|3.6839447792209907|1.2966123003737684|169|
|SNX|SNX.N|TD SYNNEX|20240406|3.6839447792209907||169|
|SNX|SNX.N|TD SYNNEX|20240407|3.6839447792209907||169|
|SNX|SNX.N|TD SYNNEX|20240408|3.6839447792209907|1.3054840916866235|169|
|SNX|SNX.N|TD SYNNEX|20240409|3.6839447792209907|1.312330839996561|169|

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|SNX|SNX.N|TD SYNNEX|20240401|15.636574|0|1.227993998984747|169|
|SNX|SNX.N|TD SYNNEX|20240402|16.148362|0|1.2681864582383724|169|
|SNX|SNX.N|TD SYNNEX|20240403|16.398015|0|1.2877925359230677|169|
|SNX|SNX.N|TD SYNNEX|20240404|16.26348|0|1.2686505092620193|169|
|SNX|SNX.N|TD SYNNEX|20240405|16.32728|0|1.2736273064158699|169|
|SNX|SNX.N|TD SYNNEX|20240408|16.216323|0|1.2649720070178687|169|
|SNX|SNX.N|TD SYNNEX|20240409|16.131719|0|1.2583723412268928|169|
|SNX|SNX.N|TD SYNNEX|20240410|15.938931|0|1.2433337585228659|169|
|SNX|SNX.N|TD SYNNEX|20240411|15.893162|0|1.2397634475211903|169|
|SNX|SNX.N|TD SYNNEX|20240412|15.69344|0|1.2241839086047883|169|

4. **Cash Flow and Financial Health**:
- SNX has a negative free cash flow of $789.52 million, which is a concern. However, the company has a history of generating significant operating cash flow of $1.4 billion, and financing cash flow of $288.6 million indicates it can manage its liquidity.
- The company's financial health is mixed, with a low Beneish M-Score of -2.58, suggesting the company is unlikely to be a stock price manipulator, but there are declining operating margins and asset growth rate compared to revenue growth.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|SNX|SNX.N|TD SYNNEX|2024 Q2|9.89384000025E8|-3.2887E7|-1.14708E8|2.93723E8|169|
|SNX|SNX.N|TD SYNNEX|2024 Q3|4.25588254094E8|-8.0776E7|3.85782E8|-6.37952E8|169|
|SNX|SNX.N|TD SYNNEX|2024 Q4|4.17911997705E8|-1.2265E7|5.61941E8|-2.97664E8|169|
|SNX|SNX.N|TD SYNNEX|2025 Q1|-6.05002982842E8|-4.4532E7|-7.47997E8|2.88596E8|169|

5. **Recent Performance and Market Sentiment**:
- The stock experienced a notable drop after reporting weak first-quarter 2025 results. This could represent a buying opportunity if the underlying fundamentals remain strong.
- Despite the recent decline, SNX's historical revenue growth rates are noteworthy, with a 9.8% increase over the past year and a 14.2% average over the previous five years.

In conclusion, while SNX shows potential for long-term growth, especially with its strategic partnerships and historical revenue trends, the current negative free cash flow, declining net income, and recent stock price drop due to earnings miss pose challenges. Investors should consider these factors along with their risk tolerance and investment horizon before making a decision.