Synnex Stock Story


USD 102.12  1.44  1.43%   

As many rational traders are trying to avoid technology space, it makes sense to break down Synnex Corp a little further and understand how it stands against Paypal Holdings and other similar entities. We are going to inspect some of the competitive aspects of both Synnex and Paypal.
Published over a month ago
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Should we be acquiring Paypal or Synnex Corp?

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 companies, such as Synnex or Paypal is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Synnex Corp dividends

A dividend is the distribution of a portion of Synnex Corp 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 Corp 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 $0.83 per share.
Payment of Dividends and Other Cash Distributions is likely to drop to about (41.8 M) in 2022. Dividend Yield is likely to drop to 0.005842 in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-38.8 M-41.8 M
Dividend Yield 0.0063  0.005842 
Dividends per Basic Common Share 0.77  0.68 
Investing in dividend-paying stocks, such as Synnex Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Synnex Corp 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 Corp. 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 Corp's Liquidity

Synnex Corp financial leverage refers to using borrowed capital as a funding source to finance Synnex Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synnex Corp 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. Please check the breakdown between Synnex Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Synnex Corp, but it might be worth checking our own buy vs. sell analysis

Correlation Between Synnex and Paypal Holdings

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 Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Paypal Holdings to your portfolio. If Paypal Holdings is not perfectly correlated to Synnex Corp 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 Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between SNX and PYPL for more information.

Exercise or conversion by Dennis Polk of 8000 shares of Synnex Corp subject to Rule 16b-3

Legal trades by Synnex Corp 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 exercise of employee stock option (right to buy) by Dennis Polk, Executive Chair, on 4th of August 2022. This event was filed by Td Synnex Corp with SEC on 2022-08-04. Statement of changes in beneficial ownership - SEC Form 4. Dennis Polk currently serves as executive chairman of the board, head - global businesses, integration lead of Synnex Corp [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.

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

Synnex42.15 Billion
Sector4.08 Billion
Paypal25.82 Billion
42.1 B
25.8 B

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.

Editorial Staff

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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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