SNX

TD Synnex Corp

TMT


Presented:04/25/2024
Price:$117.38
Cap:$10.23B
Current Price:$119.01
Cap:$10.13B

Presented

Date04/25/2024
Price$117.38
Market Cap$10.23B
Ent Value$12.14B
P/E Ratio17.03x
Book Value$93.30
Div Yield1.28%
Shares O/S87.15M
Ave Daily Vol1,060,307
Short Int2.08%

Current

Price$119.01
Market Cap$10.13B
TD SYNNEX Corp. engages in the distribution and aggregation of solutions in the information technology ecosystem. It operates through the following geographical segments: Americas, Europe, and Asia-Pacific and Japan. The firm offers IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. It also provides system design and integration solutions. The company was founded by Robert T. Huang in 1980 and is headquartered in Fremont, CA.

Publicly traded companies mentioned herein: Meta Platforms Inc (META), Microsoft Corp (MSFT), NVIDIA Corp (NVDA), TD SYNNEX Corp (SNX)

Highlights

The presenter is long shares of TD SYNNEX Corp (SNX), which he considers a better-than-appreciated business with a dominant market position in the IT distribution space. After its merger with Tech Data, SNX is the #1 global technology distributor with >40% market share in the Americas and >20% in Europe. Despite the perception that technology distribution has digital risk (e.g., growing cloud usage lowering hardware needs), he argues that the channel remains fundamental to the technology ecosystem and digital “products” (e.g., software) have accelerated growth. In addition, the business is on the cusp of an AI-driven growth reacceleration, an upcoming management upgrade, a strong balance sheet, and trades at an undemanding valuation (sub-10x 2024 EPS). 

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Idea Discussion

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