By analyzing existing basic indicators between Synnex Corp and Paypal, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Paypal with a short position in Synnex Corp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Synnex Corp has an asset utilization ratio of 806.97 percent. This suggests that the company is making $8.07 for each dollar of assets. An increasing asset utilization means that Synnex Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Synnex or Avnet is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Synnex dividends
A dividend is the distribution of a portion of Synnex earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Synnex dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Synnex one year expected dividend income is about USD1.0 per share.
Dividends Paid is likely to drop to about 111.5
M in 2024.
Dividend Yield is likely to drop to 0.02 in 2024.
Investing in dividend-paying stocks, such as Synnex is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Synnex must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Synnex. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Synnex's Liquidity
Synnex
financial leverage refers to using borrowed capital as a funding source to finance Synnex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synnex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Synnex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Synnex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Synnex's total debt and its cash.
Correlation Between Synnex and Avnet Inc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Synnex together with similar or unrelated positions with a negative correlation. For example, you can also add Avnet to your portfolio. If Avnet is not perfectly correlated to Synnex it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Synnex, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Synnex and Avnet in your portfolio? Please note if you are using this as a pair-trade strategy between Synnex and Avnet, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between SNX and AVT for more information.
Breaking it down a bit more
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at Synnex Corp revenue. Based on the latest financial disclosure, Synnex Corp reported 42.15
B of revenue. This is much higher than that of the Technology sector and significantly higher than that of the
Information Technology Services industry. The revenue for all United States stocks is significantly lower than that of Synnex Corp. As for Paypal Holdings we see revenue of 25.82
B, which is 203.95% higher than that of the Information Technology Services
| Synnex | 42.15 Billion |
| Sector | 4.08 Billion |
| Paypal | 25.82 Billion |
Our perspective of the current Synnex Corp rise
Current risk adjusted performance is at -0.14. Synnex Corp exhibits very low volatility with skewness of -0.45 and kurtosis of 0.31. However, we advise investors to further study Synnex Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Synnex Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Synnex Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Synnex Corp Implied Volatility
Synnex Corp's implied volatility exposes the market's sentiment of Synnex Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Synnex Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Synnex Corp stock will not fluctuate a lot when Synnex Corp's options are near their expiration.
Our Final Takeaway
While few other entities under the information technology services industry are still a bit expensive, Synnex Corp may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Synnex as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Synnex Corp.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Synnex. Please refer to our
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