As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is SYNNEX Corporation (NYSE: SNX).
Synnex Corp is a provider of wholesale IT integration, distribution, and outsourcing services. The company operates two business segments: technology solutions and Concentrix. Technology solutions, the larger segment by revenue, resells and distributes peripherals; IT systems, including data center servers and storage solutions; system components; software, networking, communication, and security equipment; consumer electronics; and complementary products. Concentrix offers end-to-end business services focused on consumer engagement and process optimisation. Clients include resellers, retailers, original equipment manufacturers, and financial and insurance institutions. Most of the firm’s revenue is generated in the United States of America.
A quick look at the share price history for Synnex Corp (below) over the past twelve months shows that the price is up 24%. Here’s why the company is undervalued.
Market Cap: $4.67 Billion
Enterprise Value: $5.87 Billion
Operating Earnings: $899 Million
Acquirer’s Multiple: 6.53
Free Cash Flow (TTM)
Free Cash Flow: $1.72 Billion
FCF/EV Yield: 29%
Piotroski F-Score: 4
Altman Z-Score: 2.87
Beneish M-Score: -2.93
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