Assessing TD SYNNEX (SNX) Valuation After Sustained EPS Growth And Revenue Expansion
Why TD SYNNEX Is Back On Investors’ Radar
TD SYNNEX (SNX) is drawing attention after reporting 18% compound annual EPS growth over three years, along with 6.9% revenue growth to about US$61b and steady EBIT margins.
See our latest analysis for TD SYNNEX.
The latest share price of US$153.43 comes after a relatively soft 90 day share price return, with a decline of 3.29%. However, the 1 year total shareholder return of 31.44% and 3 year total shareholder return of 59.67% point to stronger momentum over a longer stretch.
If TD SYNNEX has you thinking about where else growth and capital flows could go next, it might be worth scanning high growth tech and AI stocks for other ideas in the broader tech and AI space.
With TD SYNNEX trading at US$153.43, alongside 18% compound EPS growth, a value score of 4 and an indicated intrinsic discount of about 44%, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 13.9% Undervalued
With TD SYNNEX last closing at US$153.43 against a narrative fair value of about US$178.27, the valuation case centers on earnings, margins and cash flow durability.
The continued enterprise-wide digital transformation and AI adoption, highlighted by double-digit growth in software (especially in cloud, cybersecurity, virtualization, and infrastructure software), is extending TD SYNNEX's addressable market and generating higher recurring revenue streams, which are likely to support consistent revenue and margin expansion. Ongoing data center build-outs and the proliferation of hybrid/cloud IT infrastructure, as evidenced by high growth in the Advanced Solutions and Hyve businesses, are increasing demand for complex integration and lifecycle services. These trends support improved net margins via higher-value offerings.
Want to see what sits behind that valuation gap? The narrative leans on steady revenue compounding, firmer margins, and a lower future P/E than many peers. Curious which assumptions matter most?
Result: Fair Value of $178.27 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on customer demand not fading after recent pull forwards and on margin pressures, including FX and mix effects, not becoming a more persistent drag.
Find out about the key risks to this TD SYNNEX narrative.
Build Your Own TD SYNNEX Narrative
If you read the numbers differently or prefer to stress test the assumptions yourself, you can build your own view in minutes, starting with Do it your way.
A great starting point for your TD SYNNEX research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
Looking For More Investment Ideas?
If TD SYNNEX has sharpened your focus, do not stop here. Broaden your watchlist with focused stock ideas that match the way you like to invest.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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