Synnex Technology International Corp

Synnex Technology International Corp maintains a capital structure with a debt-to-equity ratio of 1.09, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.52, suggesting it can cover its short-term obligations with its current assets. However, the firm's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for Synnex show a return on equity (ROE) of 2.49% and a return on assets (ROA) of 0.83%, both of which are below the industry median for Computer Hardware firms. The company's gross profit margin is 4.2%, and its operating margin is 2.0%, which are also below the industry average. These figures suggest that Synnex is underperforming in terms of profitability relative to its peers.

Geographically, Synnex's revenue is heavily concentrated in Asia, particularly in China and Southeast Asia, which together account for over 60% of its total revenue. The company also has a significant presence in North America and Europe, but its exposure to these regions is less than 30% combined. This concentration in Asia exposes Synnex to regional economic and regulatory risks.

Looking ahead, Synnex is projected to experience a modest growth in revenue, with a year-over-year increase of approximately 3% in the current fiscal year. The company's growth trajectory is expected to remain stable, with a projected 4% increase in the following fiscal year. These projections are based on historical revenue trends and current market conditions.

The risk assessment for Synnex highlights a medium liquidity risk due to its negative net cash position and a low dilution risk. The company has not issued new shares recently, and there is no indication of imminent dilution. However, the firm's reliance on debt financing and its exposure to regional economic factors in Asia could pose challenges in the future.

Recent events, including quarterly earnings reports and investor presentations, indicate that Synnex is focusing on expanding its digital transformation services and strengthening its supply chain solutions. The company has also been investing in its logistics infrastructure to improve delivery times and customer satisfaction. These initiatives are expected to drive long-term growth and enhance the company's competitive position.

Analysts project 10.1% upside to a consensus target price of 100.0 TWD, reflecting strong buy sentiment.

Free cash flow surged 93.0% year-over-year to 2.49 billion TWD, demonstrating significant cash generation improvement.

Cash conversion ratio of 10.89 ranks best-in-class among 209 computer hardware peers, indicating superior efficiency.

Long-term debt decreased to 76.09 billion TWD in FY2026, suggesting a deliberate deleveraging strategy.

Revenue CAGR of 0.1% over four years indicates stable top-line performance despite market volatility.

Net income CAGR of -16.3% over four years signals a severe and sustained decline in profitability.

Debt-to-equity ratio of 1.09 places the company in the bottom quartile of its peer cohort.

The company faces high credit risk, posing significant concerns regarding its ability to meet financial obligations.

Revenue TWD 126.36B, +38,2% YoY; Operating income +79,0% YoY.

• ▍Revenue TWD 126.36B, +38,2% YoY
• ▍Operating income +79,0% YoY
• ▍Net income +61,7% YoY
• ▍Free cash flow +86,2% YoY
• ▍Net margin 2.3%

Revenue TWD 126.21B, +11,4% YoY; Operating income +2,2% YoY.

• ▍Revenue TWD 126.21B, +11,4% YoY
• ▍Operating income +2,2% YoY
• ▍Net income −5,9% YoY
• ▍Free cash flow +20,7% YoY
• ▍Net margin 2.2%

Revenue TWD 100.23B, −7,9% YoY; Operating income −17,6% YoY.

• ▍Revenue TWD 100.23B, −7,9% YoY
• ▍Operating income −17,6% YoY
• ▍Net income +13,7% YoY
• ▍Free cash flow +26 518,2% YoY
• ▍Net margin 2.6%

Revenue TWD 93.32B, −6,9% YoY; Operating income −31,8% YoY.

• ▍Revenue TWD 93.32B, −6,9% YoY
• ▍Operating income −31,8% YoY
• ▍Net income −28,0% YoY
• ▍Free cash flow −5,5% YoY
• ▍Net margin 1.4%

Revenue TWD 91.40B; Operating income TWD 1.88B.

• ▍Revenue TWD 91.40B
• ▍Operating income TWD 1.88B
• ▍Net margin 2.0%

Revenue TWD 113.25B; Operating income TWD 3.14B.

• ▍Revenue TWD 113.25B
• ▍Operating income TWD 3.14B
• ▍Net margin 2.6%

Revenue TWD 108.80B; Operating income TWD 2.56B.

• ▍Revenue TWD 108.80B
• ▍Operating income TWD 2.56B
• ▍Net margin 2.1%

Revenue TWD 100.21B; Operating income TWD 2.00B.

• ▍Revenue TWD 100.21B
• ▍Operating income TWD 2.00B
• ▍Net margin 1.8%

Revenue TWD 411.15B, −3,5% YoY; Operating income −14,6% YoY.

• ▍Revenue TWD 411.15B, −3,5% YoY
• ▍Operating income −14,6% YoY
• ▍Net income −8,1% YoY
• ▍Free cash flow +93,0% YoY
• ▍Net margin 2.1%

Revenue TWD 426.01B, +7,6% YoY; Operating income +16,2% YoY.

• ▍Revenue TWD 426.01B, +7,6% YoY
• ▍Operating income +16,2% YoY
• ▍Net income +26,4% YoY
• ▍Free cash flow −21,0% YoY
• ▍Net margin 2.2%

Revenue TWD 395.99B, −6,7% YoY; Operating income −5,5% YoY.

• ▍Revenue TWD 395.99B, −6,7% YoY
• ▍Operating income −5,5% YoY
• ▍Net income −53,7% YoY
• ▍Free cash flow −80,2% YoY
• ▍Net margin 1.8%

Revenue TWD 424.55B, +3,9% YoY; Operating income −2,1% YoY.

• ▍Revenue TWD 424.55B, +3,9% YoY
• ▍Operating income −2,1% YoY
• ▍Net income −8,8% YoY
• ▍Free cash flow −33,6% YoY
• ▍Net margin 3.7%