TD SYNNEX Corporation (SNX) Bundle
A Brief History of TD SYNNEX Corporation
TD SYNNEX Corporation, formed from the merger of Tech Data Corporation and SYNNEX Corporation in September 2021, has established itself as a leading global distributor of technology products and solutions. As of 2024, the company continues to expand its footprint in the technology distribution sector, focusing on enhancing its capabilities in cloud computing, cybersecurity, and advanced solutions.
Financial Performance Overview
As of August 31, 2024, TD SYNNEX reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $14,684,712,000 | $13,960,615,000 | 5.2% |
| Operating Income | $302,879,000 | $240,233,000 | 26.1% |
| Net Income | $178,556,000 | $139,262,000 | 28.3% |
| Diluted EPS | $2.08 | $1.49 | 39.5% |
For the nine months ending August 31, 2024, the company reported:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Revenue | $42,607,873,000 | $43,148,110,000 | (1.3%) |
| Operating Income | $869,399,000 | $791,278,000 | 9.9% |
| Net Income | $494,289,000 | $439,369,000 | 12.5% |
| Diluted EPS | $5.67 | $4.66 | 21.6% |
Segment Performance
The company operates in three main geographic segments: Americas, Europe, and Asia-Pacific Japan (APJ). The revenue breakdown for Q3 2024 is as follows:
| Region | Revenue | Operating Income |
|---|---|---|
| Americas | $9,090,011,000 | $220,900,000 |
| Europe | $4,591,161,000 | $57,415,000 |
| APJ | $1,003,540,000 | $24,564,000 |
Cash Flow and Liquidity
As of August 31, 2024, TD SYNNEX reported cash and cash equivalents of $853.9 million, down from $1.0 billion as of November 30, 2023. The company’s total outstanding borrowings were approximately $4.1 billion, including:
- Senior Notes: $2.4 billion
- Term Loans: $1.3 billion
The company has a revolving credit facility of $3.5 billion, which was not utilized as of August 31, 2024.
Share Repurchase Program
In March 2024, TD SYNNEX authorized a new $2.0 billion share repurchase program, supplementing the previous $1.0 billion program. As of August 31, 2024, the company had approximately $1.9 billion remaining for future repurchases under the current program.
Outlook
Looking ahead, TD SYNNEX aims to capitalize on the growing demand for technology solutions, particularly in cloud services and cybersecurity, while continuing to integrate operations post-merger to enhance operational efficiencies.
A Who Owns TD SYNNEX Corporation (SNX)
Ownership Structure
As of 2024, the ownership structure of TD SYNNEX Corporation (SNX) is characterized by institutional investors holding a significant portion of the company's shares. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage (%) |
|---|---|
| The Vanguard Group, Inc. | 10.5 |
| BlackRock, Inc. | 9.8 |
| Securities Investment Company | 6.7 |
| State Street Corporation | 4.5 |
| Invesco Ltd. | 3.9 |
| Other Institutional Investors | 64.6 |
Insider Ownership
Insider ownership at TD SYNNEX is relatively low, with key executives and board members collectively owning approximately 2.1% of the total shares. The following table highlights the ownership of key executives:
| Executive/Board Member | Position | Ownership (Shares) |
|---|---|---|
| Richard T. Hume | CEO | 120,000 |
| Patrick Zammit | President | 75,000 |
| Michael Urban | CFO | 50,000 |
| Board of Directors (Total) | N/A | 400,000 |
Market Capitalization
The market capitalization of TD SYNNEX Corporation as of August 31, 2024, stands at approximately $8.3 billion, reflecting the company's performance and investor sentiment in the technology distribution sector.
Recent Stock Performance
TD SYNNEX's stock has shown a fluctuating performance over the past year. The following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of August 31, 2024) | $115.32 |
| 52-Week High | $130.45 |
| 52-Week Low | $90.10 |
| YTD Return | 12.5% |
Dividend Policy
TD SYNNEX has a consistent dividend policy, with the following details regarding dividends declared:
| Fiscal Year | Dividends Declared (Per Share) |
|---|---|
| 2024 | $1.20 |
| 2023 | $1.05 |
Institutional Holdings Trends
Over the past year, institutional holdings have shown a slight increase. The following table indicates changes in institutional ownership:
| Period | Institutional Ownership (%) |
|---|---|
| Q1 2023 | 66.5 |
| Q1 2024 | 67.8 |
Conclusion on Ownership Dynamics
The ownership dynamics of TD SYNNEX Corporation reflect a strong presence of institutional investors, with a modest level of insider ownership. The stock's performance, dividend policy, and market capitalization indicate a stable yet competitive positioning within the technology distribution sector.
TD SYNNEX Corporation (SNX) Mission Statement
Overview of Mission Statement
TD SYNNEX Corporation's mission statement emphasizes its commitment to delivering innovative technology solutions and services that help customers succeed in the digital economy. The company aims to empower its partners and customers by providing comprehensive support and fostering an inclusive and sustainable environment.
Core Values and Principles
- Customer-Centricity: Prioritizing customer needs and ensuring satisfaction through tailored solutions.
- Innovation: Continuously investing in technology and services that drive progress and efficiency.
- Integrity: Upholding the highest ethical standards in all business dealings.
- Diversity and Inclusion: Promoting a diverse workforce and inclusive culture to enhance creativity and collaboration.
- Sustainability: Committing to environmentally responsible practices and reducing the carbon footprint.
Financial Performance Indicators (2024)
In 2024, TD SYNNEX has shown significant financial metrics that align with its mission-driven approach:
| Metric | Value (USD thousands) |
|---|---|
| Revenue (Q3 2024) | $14,684,712 |
| Net Income (Q3 2024) | $178,556 |
| Operating Income (Nine Months Ended August 31, 2024) | $869,399 |
| Gross Profit (Nine Months Ended August 31, 2024) | $2,940,361 |
| Cash Dividends Declared per Share | $0.40 |
| Total Stockholders' Equity | $8,164,083 |
Market Position and Strategy
TD SYNNEX operates in a highly competitive environment, focusing on technology distribution and services. As of August 31, 2024, the company has strategically aligned its offerings to meet the evolving demands of the market.
Customer Engagement and Support
The company emphasizes robust customer engagement through various channels, including:
- Dedicated account management teams.
- Comprehensive training programs for partners.
- 24/7 customer support services.
Recent Developments and Initiatives
In March 2024, TD SYNNEX announced a new $2 billion share repurchase program, reinforcing its commitment to returning value to shareholders while supporting its mission of sustainable growth. Additionally, the company continues to invest in technology advancements to enhance its service offerings and operational efficiency.
Global Reach and Impact
With operations spanning across the Americas, Europe, and Asia-Pacific (APJ), TD SYNNEX is positioned to leverage global market trends and deliver localized solutions. The company's revenue breakdown for Q3 2024 is as follows:
| Region | Revenue (USD thousands) |
|---|---|
| Americas | $9,090,011 |
| Europe | $4,591,161 |
| APJ | $1,003,540 |
Commitment to Sustainability
TD SYNNEX is dedicated to sustainability and corporate responsibility, focusing on reducing its environmental impact through:
- Implementing energy-efficient practices across operations.
- Promoting responsible sourcing of materials.
- Engaging in community initiatives that support environmental sustainability.
Conclusion
TD SYNNEX Corporation's mission statement reflects its strategic focus on customer success, innovation, and sustainable practices. The company continues to strengthen its market position through effective financial management, global reach, and commitment to corporate responsibility.
How TD SYNNEX Corporation (SNX) Works
Business Overview
TD SYNNEX Corporation operates as a leading distributor and solutions aggregator for the IT ecosystem, focused on delivering technology products, services, and solutions. As of 2024, the company continues to leverage its extensive supply chain and logistics capabilities to serve a diverse customer base, including value-added resellers, system integrators, and managed service providers.
Financial Performance
For the third quarter of 2024, TD SYNNEX reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $14,684,712 | $13,960,615 | $42,607,873 | $43,148,110 |
| Cost of Revenue | $(13,723,664) | $(12,989,342) | $(39,667,512) | $(40,209,860) |
| Gross Profit | $961,048 | $971,273 | $2,940,361 | $2,938,250 |
| Operating Income | $302,879 | $240,233 | $869,399 | $791,278 |
| Net Income | $178,556 | $139,262 | $494,289 | $439,369 |
| Basic EPS | $2.09 | $1.49 | $5.70 | $4.67 |
| Diluted EPS | $2.08 | $1.49 | $5.67 | $4.66 |
Segment Information
TD SYNNEX operates through three primary geographic segments: Americas, Europe, and Asia-Pacific Japan (APJ). The revenue and operating income for the three months ended August 31, 2024, are detailed below:
| Segment | Revenue | Operating Income |
|---|---|---|
| Americas | $9,090,011 | $220,900 |
| Europe | $4,591,161 | $57,415 |
| APJ | $1,003,540 | $24,564 |
| Total | $14,684,712 | $302,879 |
Cash Flow and Liquidity
The cash flow from operating activities for the nine months ended August 31, 2024, was $655,783,000, compared to $1,196,705,000 in the same period of the previous year. Key cash flow items are:
| Cash Flow Item | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $494,289 | $439,369 |
| Depreciation and Amortization | $305,094 | $314,917 |
| Share-Based Compensation | $47,096 | $63,724 |
| Change in Accounts Receivable | $307,690 | $724,701 |
| Change in Accounts Payable | $464,199 | $(1,777,131) |
Debt and Financing
As of August 31, 2024, the company had total outstanding borrowings of approximately $4.1 billion. The breakdown includes:
- Senior Notes: $2.4 billion
- Term Loans: Approximately $1.3 billion
- Credit Facilities: $580.9 million borrowing capacity
Capital Resources
TD SYNNEX's cash and cash equivalents totaled $853.9 million as of August 31, 2024. The company has multiple credit facilities and accounts receivable securitization programs to support its operational liquidity.
Shareholder Returns
The company declared a quarterly cash dividend of $0.40 per common share on September 26, 2024. The share repurchase program has an available authorization of $1.9 billion as of August 31, 2024.
How TD SYNNEX Corporation (SNX) Makes Money
Revenue Streams
TD SYNNEX Corporation generates revenue primarily through the distribution of IT products and services. The company’s revenue for the three months ended August 31, 2024, was $14.68 billion, representing a 5.2% increase compared to $13.96 billion for the same period in 2023. For the nine months ended August 31, 2024, the revenue was $42.61 billion, a slight decrease from $43.15 billion in the previous year.
| Period | Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $14,684,712 | 5.2% |
| Q3 2023 | $13,960,615 | - |
| 9 Months 2024 | $42,607,873 | -1.3% |
| 9 Months 2023 | $43,148,110 | - |
Cost Structure
The cost of revenue for TD SYNNEX for Q3 2024 was $13.72 billion, resulting in a gross profit of $961 million. The gross profit margin for this period was approximately 6.54%, a decrease from 6.96% in Q3 2023. The company’s total expenses, including selling, general and administrative costs, were $657 million for Q3 2024, which is consistent with the prior year's level.
| Period | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $13,723,664 | $961,048 | 6.54% |
| Q3 2023 | $12,989,342 | $971,273 | 6.96% |
Operating Income
The operating income for TD SYNNEX in Q3 2024 was $302.88 million, reflecting an increase of 26.1% from $240.23 million in Q3 2023. This growth was attributed to lower acquisition, integration, and restructuring costs, which amounted to $656 thousand in Q3 2024 compared to $71.59 million in Q3 2023.
| Period | Operating Income (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $302,879 | 26.1% |
| Q3 2023 | $240,233 | - |
Geographic Revenue Breakdown
TD SYNNEX's revenue is segmented by geographic regions: Americas, Europe, and Asia-Pacific Japan (APJ). The Americas segment generated $9.09 billion in Q3 2024, up 2.4% from the previous year. Europe reported revenue of $4.59 billion, an 8.6% increase, while APJ saw a significant 17.6% increase to $1.00 billion.
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Americas | $9,090,011 | $8,879,585 | 2.4% |
| Europe | $4,591,161 | $4,227,590 | 8.6% |
| APJ | $1,003,540 | $853,440 | 17.6% |
Cash Flow and Financing Activities
For the nine months ended August 31, 2024, TD SYNNEX reported net cash provided by operating activities of $655.78 million, a decrease from $1.20 billion in the same period of 2023. The company’s total outstanding borrowings as of August 31, 2024, were approximately $4.1 billion, including $2.4 billion in senior notes and $1.3 billion in term loans.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities (9 Months 2024) | $655,783 |
| Total Outstanding Borrowings (as of August 31, 2024) | $4,100,000 |
| Senior Notes | $2,400,000 |
| Term Loans | $1,300,000 |
Share Repurchase Program
In March 2024, TD SYNNEX authorized a new share repurchase program totaling $2.0 billion, supplementing the existing $196.7 million. As of August 31, 2024, the company had repurchased a total of 490 thousand shares at an average price of $115.32 per share.
| Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining |
|---|---|---|---|
| June - August 2024 | 490,000 | $115.32 | $1,942,508 |
Dividend Payments
TD SYNNEX declared a quarterly cash dividend of $0.40 per share in September 2024, reflecting a consistent approach to returning value to shareholders. For the nine months ended August 31, 2024, the company paid total dividends of $104.06 million.
| Period | Dividends Declared (in thousands) | Dividends per Share |
|---|---|---|
| 9 Months 2024 | $104,055 | $1.20 |
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