TD SYNNEX
SNX
$252.85
-0.44%
TD SYNNEX Corporation is a leading IT distribution and solutions aggregator, connecting technology vendors with resellers and end customers across the Americas, Europe, and APJ. The company distributes a broad portfolio including hardware, software, and systems, and has established itself as a critical intermediary in the global technology supply chain. Currently, the stock is drawing attention due to a strong recovery in demand for IT infrastructure and hybrid cloud solutions, which has driven robust revenue growth and margin expansion. Investors are also focused on the company's ability to capitalize on AI-driven enterprise spending and its strategic initiatives to enhance operational efficiency.…
SNX
TD SYNNEX
$252.85
Investment Opinion: Should I buy SNX Today?
Based on the strong growth, improving profitability, and attractive valuation, SNX is rated a Buy. The consensus recommendation is 'Buy' with an average target price of $333.55, implying 31.3% upside, and the company's accelerating revenue growth of 30.97% YoY supports this view. The stock trades at a trailing PE of 15.05x, a 31.6% discount to the sector average of 22x, and a PEG of 0.58, indicating undervaluation relative to its growth rate. Additionally, the forward PE of 11.86x suggests the market expects 27% earnings growth, which is plausible given the recent momentum.
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SNX 12-Month Price Forecast
The AI assessment is bullish, driven by the company's strong growth acceleration, improving profitability, and attractive valuation. The forward PE of 11.86x and PEG of 0.58 suggest the market is not fully pricing in the growth potential. However, the medium confidence reflects risks from negative free cash flow and high beta. If the company can sustain growth above 20% and generate positive FCF, the stock could re-rate higher. Conversely, any signs of deceleration or margin pressure would warrant a downgrade to neutral.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on TD SYNNEX's 12-month outlook, with a consensus price target around $333.55 and implied upside of +31.9% versus the current price.
Average Target
$333.55
0 analysts
Implied Upside
+31.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$278 - $374
Analyst target range
TD SYNNEX is covered by 11 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.55 (where 1 is Strong Buy and 5 is Sell). The average target price is $333.55, implying a substantial upside of 31.3% from the current price of $253.97. The analyst sentiment is clearly bullish, with no sell ratings and a majority of buy or outperform ratings, as evidenced by recent actions from firms like UBS, Morgan Stanley, and Goldman Sachs maintaining or reiterating positive stances. The target price range spans from a low of $278.00 to a high of $374.00, indicating a wide dispersion of expectations. The high target of $374.00 suggests that some analysts anticipate continued strong growth and multiple expansion, possibly driven by AI-related demand and market share gains. The low target of $278.00 still implies a 9.5% upside, reflecting a more conservative view but still positive. The wide range (about 34.5% between low and high) highlights uncertainty around the sustainability of growth and margin trends, but the overall consensus points to significant upside potential.
Bulls vs Bears: SNX Investment Factors
TD SYNNEX presents a compelling bull case driven by accelerating revenue growth, improving profitability, and a significant valuation discount to peers, with strong analyst support. However, the bear case highlights risks from negative free cash flow, high beta, and the low-margin nature of distribution, which could lead to volatility. Currently, the bull evidence is stronger, given the 30.97% revenue growth and 31.3% upside to analyst targets, but the key tension is whether the company can sustain this growth and convert it into positive free cash flow, as that would validate the current valuation and support further upside.
Bullish
- Revenue growth accelerating strongly: Q2 2026 revenue surged 30.97% YoY to $19.57B, with sequential growth from $17.16B in Q1 2026 and $15.65B in Q3 2025, indicating accelerating demand for IT infrastructure and hybrid cloud solutions.
- Valuation discount to sector: Trailing PE of 15.05x is 31.6% below the industry average of 22x, and PEG ratio of 0.58 suggests undervaluation relative to growth, providing a margin of safety for investors.
- Strong analyst consensus and upside: 11 analysts rate SNX a Buy with a mean target of $333.55, implying 31.3% upside from the current price of $253.97. No sell ratings and a low recommendation mean of 1.55 indicate broad bullish sentiment.
- Improving profitability metrics: Net income rose to $334.09M in Q2 2026 from $184.92M a year ago, with gross margin expanding to 6.84% from 6.73% and operating margin improving to 2.65% from 2.62%, reflecting better cost control and operating leverage.
Bearish
- Negative free cash flow in H1 2026: TTM free cash flow is only $374.56M, and the company reported negative FCF in the first half of 2026 due to working capital investments, which could pressure liquidity if growth slows.
- High beta and market sensitivity: Beta of 1.436 indicates the stock is 43.6% more volatile than the market, amplifying downside risk during market corrections, as seen in the -18.77% max drawdown from its 52-week high.
- Potential overextension after strong run: The stock has surged 69.8% over the past year and now trades at 85.7% of its 52-week range, leaving limited room for error if growth decelerates or multiples compress.
- Thin gross margins typical of distribution: Gross margin of 6.84% is inherently low due to the distribution business model, making profitability sensitive to small shifts in pricing, competition, or product mix.
SNX Technical Analysis
TD SYNNEX has been in a powerful uptrend over the past year, with the stock price surging 69.8% over the last 12 months, significantly outperforming the S&P 500's 18.6% gain. The current price of $253.97 sits at approximately 85.7% of its 52-week range (between $142.22 low and $296.47 high), indicating the stock is trading near its highs but has pulled back from the peak. This positioning suggests strong momentum but also potential overextension, as the stock has experienced a -18.77% maximum drawdown from its high.
Beta
1.44
1.44x market volatility
Max Drawdown
-18.8%
Largest decline past year
52-Week Range
$142-$296
Price range past year
Annual Return
+70.8%
Cumulative gain past year
| Period | SNX Return | S&P 500 |
|---|---|---|
| 1m | -1.1% | +2.7% |
| 3m | -9.5% | +1.0% |
| 6m | +57.8% | +12.0% |
| 1y | +70.8% | +18.9% |
| ytd | +64.8% | +12.5% |
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SNX Fundamental Analysis
TD SYNNEX has demonstrated robust revenue growth, with the most recent quarter (Q2 2026) reporting revenue of $19.57 billion, a 30.97% year-over-year increase. This growth is accelerating, as prior quarters showed sequential improvements: Q1 2026 revenue was $17.16 billion, Q4 2025 was $17.38 billion, and Q3 2025 was $15.65 billion. The growth is broad-based, with product revenue of $6.12 billion and service revenue of $1.30 billion in the latest quarter, indicating strength across both segments. The company's profitability has also improved, with net income of $334.09 million in Q2 2026, up from $184.92 million in the year-ago quarter, and gross margin expanding to 6.84% from 6.73% in the prior year. Operating margin improved to 2.65% in Q2 2026 from 2.62% in Q2 2025, reflecting better cost control and operating leverage. The balance sheet remains solid, with a debt-to-equity ratio of 0.55 and a current ratio of 1.21, indicating adequate liquidity. However, free cash flow was negative in the first half of 2026 due to working capital investments, with TTM free cash flow of $374.56 million, and the company's ROE stands at 9.79%, showing efficient use of equity.
Quarterly Revenue
$19.6B
2026-05
Revenue YoY Growth
+31.0%
YoY Comparison
Gross Margin
6.8%
Latest Quarter
Free Cash Flow
$374559000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SNX Overvalued?
Given that TD SYNNEX is profitable, the primary valuation metric used is the price-to-earnings (PE) ratio. The trailing PE is 15.05x, while the forward PE is 11.86x, implying that the market expects earnings growth of approximately 27% over the next year. This gap suggests that the market is pricing in continued strong earnings momentum, which is supported by the company's recent performance. Compared to the industry average, TD SYNNEX trades at a significant discount, with a PE of 15.05x versus the sector average of 22x, representing a 31.6% discount. This discount is likely due to the company's lower gross margin profile typical of distributors, but it may be unjustified given its strong growth and improving profitability. Historically, the stock's PE has ranged from about 9.7x to 19.6x over the past few years, and the current trailing PE of 15.05x is near the middle of that range, suggesting that the stock is fairly valued relative to its own history. The PEG ratio of 0.58 indicates that the stock is undervalued relative to its growth rate, further supporting the case for upside.
PE
15.0x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 10x~20x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks include the negative free cash flow in H1 2026, which, despite a TTM FCF of $374.56M, signals working capital strain that could limit flexibility. The debt-to-equity ratio of 0.55 is manageable, but interest expenses of $97.84M in Q2 2026 consume a portion of operating income, and any rise in rates could pressure margins. Revenue concentration in IT distribution exposes the company to cyclicality in tech spending, and the low gross margin of 6.84% means small cost increases can significantly impact net income, which was only $334.09M on $19.57B revenue.