Synnex Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>SNX</div>
SNX -- USA Stock  

USD 86.00  0.94  1.08%

Synnex is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 11th of January 2021. The stock just had it stock split. Synnex has reported 245 for 100 split on 1st of December 2020. Because some of us are getting excited about technology space, it makes sense to break down Synnex in greater detail. Should we be more optimistic in anticipation of a recovery?
Published over two weeks ago
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What are the current analyst consensus on Synnex (NYSE:SNX)?
The entity's average rating is Buy from 6 analysts. Macroaxis provides recommendation on Synnex to complement and cross-verify current analyst consensus on Synnex. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
What is the right price you would pay to acquire a share of Synnex? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Synnex this year

Annual and quarterly reports issued by Synnex are formal financial statements that are published yearly and quarterly and sent to Synnex stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Synnex often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Synnex utilizes its cash?

To perform a cash flow analysis of Synnex, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Synnex is receiving and how much cash it distributes out in a given period. The Synnex cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Synnex Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Synnex reported Net Cash Flow from Operations of 494.93 Million in 2020

Acquisition by Michael Urban of 16313 shares of Synnex subject to Rule 16b-3

Legal trades by Synnex insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Synnex insider trading alert for grant of employee stock option (right to buy) by Michael Urban, President Worldwide Distrib., on 25th of January 2021. This event was filed by Synnex Corp with SEC on 2021-01-25. Statement of changes in beneficial ownership - SEC Form 4. Michael Urban currently serves as president - worldwide technology solutions distribution of Synnex [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Synnex a risky opportunity?

Let's check the volatility. Synnex is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Synnex (NYSE:SNX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Synnex stock makes you a part-owner of that company.

Synnex Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Synnex. The Synnex consensus assessment is calculated by taking the average estimates from all of the analysts covering Synnex

Strong Buy
5
Hold
1
Strong Buy583.33
Buy00.0
Hold116.67
Sell00.0
Strong Sell00.0

Will Synnex price slide impact its balance sheet?

Current value at risk is at -2.95. Synnex has relatively low volatility with skewness of 2.51 and kurtosis of 12.01. However, we advise all investors to independently investigate Synnex to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

While many other companies in the information technology services industry are either recovering or due for a correction, Synnex may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 10th of January 2021, our actual 30 days Buy-Hold-Sell recommendation on the company is Strong Buy. We believe Synnex is currently undervalued with low probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Synnex. Please refer to our Terms of Use for any information regarding our disclosure principles.

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