Home Sectors Industrials Long or Short: Synnex Corporation (NYSE: SNX)

Long or Short: Synnex Corporation (NYSE: SNX)


Synnex Corporation trades as part of the industrials sector and is part of the business services industry. The company CEO is Dennis J. Polk. Synnex Corp is a business process services company, providing a comprehensive range of distribution, logistics and integration services. The company operates in two segments: Technology Solutions and Concentrix.

Previous Intraday Trading Performance:

The SNX stock showed a previous change of 0.47% with an open at 84.47 and a close of 83.41. It reached an intraday high of 84.89 and a low of 82.42.

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The stock has a market cap of $4.3b with 51.2m shares outstanding, of which the float is 50.0m shares. Trading volume reached 526,903 shares compared to its average volume of 554,182 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Synnex Corporation shares returned 2.77% and in the past 30 trading days it returned 9.39%. Over three months, it changed 0.07%. In one year it has changed -39.67% and within that year its 52-week high was 141.28 and its 52-week low was 71.83. SNX stock is 16.13% above its 52 Week Low.

Our calculations show a 200 day moving average of 94.42 and a 50 day moving average of 78.92. Currently SNX stock is trading -11.66% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 7.51 that ended on 30th of November 2017, which according to the previous close, that is a PE of 11.11. Based on 1 analyst estimate, the estimated EPS for the next quarter is 3.25. The TTM EPS is 9.88, which comes to a TTM PE of 8.44. Historically, the PE high was 27.10 and the PE low was 8.00. If the stock reached its PE low, that would represent a price of 79.06, which is a decrease of -5.21%.

The following are the last four quarter reported earnings per share:
08-31-2018:  2.57
05-31-2018:  2.38
02-28-2018:  2.14
11-30-2017:  2.79

The dividend per share is currently 1.40, which is a dividend yield of 1.68%. Also, the payout ratio is 14.17%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 135.21, which means it is possibly undervalued and has a margin of safety of 38.31%

Indicators to Watch:

Based on the latest filings, there is 109.30% of institutional ownership. Short-interest is 1,496,619, which is 2.93% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.13. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.57

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.29%, return on assets is 4.29%, profit margin is 1.30%, price-to-sales is 0.29 and price-to-book is 1.76.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 1  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 3  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.