Value Play
In a continuously changing industry environment, Synnex Corporation (SNX) has seen an increase in its competitive landscape through consolidation efforts and increased price-based competition. A rise in product costs for their Technology Solutions segment has affected SNX’s operating margins. Additionally, late 2018 and 2019 has further pressured SNX’s stock price due to interest-rate uncertainty, China/U.S trade-war fears, and the overall global economic slowdown, causing market pull-backs. Since January 2018, the stock has fallen 65.90%.
Investment Thesis
A Discounted Free Cash Flow to Firm analysis is indicating an undervaluation for SNX. A