TD SYNNEX (SNX) Fundamental Analysis: Revenue, Earnings & Valuation

7.53 / 10

Outperform

TD SYNNEX demonstrates strong fundamentals with a 7.5/10 quality score. Key positives include a Current assets turnover ratio of 2.6819 (Group 3) and a Total assets turnover ratio of 1.9375 (Group 4), both historically linked to attractive monthly returns. Revenue growth is healthy at 6.9384% YoY (Group 2), while ROE (diluted) shows an impressive 8.6112% YoY growth (Group 3). Leverage remains manageable with an Asset-liability ratio of 75.3279% (Group 3) and an Equity multiplier of 4.0532 (Group 3). The Current ratio of 1.2065 (Group 2) and Equity ratio of 3.0532 (Group 3) further support balance sheet strength. Only the Total profit / EBIT ratio of 74.7777 (Group 1) is a minor concern, indicating room for improvement in profit efficiency relative to EBIT. Overall, the fundamental profile is robust and supportive of long-term growth.

Analysis Checks(7/10)

Asset-liability ratio (%)

Value75.33

Score3/3

Weight42.28%

1M Return80.70%

Total operating revenue (YoY growth rate %)

Value6.94

Score2/3

Weight1.01%

1M Return1.83%

Equity multiplier

Value4.05

Score1/3

Weight0.47%

1M Return0.90%

ROE (diluted) (YoY growth rate %)

Value8.61

Score3/3

Weight51.00%

1M Return82.15%

Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)

Value3.05

Score1/3

Weight0.49%

1M Return0.93%

Total profit / EBIT (%)

Value74.78

Score2/3

Weight0.93%

1M Return1.73%

Current assets turnover ratio

Value2.68

Score2/3

Weight1.38%

1M Return2.45%

Operating revenue (YoY growth rate %)

Value6.94

Score2/3

Weight0.89%

1M Return1.63%

Total assets turnover ratio

Value1.94

Score2/3

Weight1.19%

1M Return2.36%

Current ratio

Value1.21

Score1/3

Weight0.35%

1M Return0.64%

Is SNX undervalued or overvalued?

SNX scores 7.53/10 on fundamentals and holds a Discounted valuation at present. Backed by its 10.04% ROE, 1.32% net margin, 16.72 P/E ratio, 1.64 P/B ratio, and 25.03% earnings growth, these metrics solidify its Outperform investment rating.