SYNNEX Corporation (SNX) is a hidden cheap stock which also pays a dividend. This Zacks Rank #1 (Strong Buy) trades with a forward P/E of just 8.3.
SYNNEX is a global business process services company which provides distribution, logistics and integration of services fo rthe technology industry.
It has two segments Technology Solutions and Concentrix. Concentrix which operates as a wholly-owned subsidiary and offers strategic solutions and end-to-end business services.
Another Beat in Fiscal Q4 2018
On Jan 10, SYNNEX reported its fiscal Q4 results and blew away the Zacks Consensus Estimate by 40 cents. Earnings were $3.65 compared to the consensus of $3.25.
It was another earnings surprise in a long line of them as the company has only missed once in the last 5 years and that was all the way back in 2015.
Total revenue was up 5.8% to $5.6 billion from $5.3 billion a year ago. While it saw strong demand in Technology Solutions, revenue actually fell 2.7% year-over-year.
However, Concentrix revenue jumped 82% to $972 million as a result of the Convergys acquisition completed on Oct 5.
The company generated cash from operations of $141 million in the quarter.
It also raised its quarterly dividend by 7%. It's now yielding 1.6%.
Full Year Estimates Raised
Analysts liked what they heard as full year estimates are on the move higher.
The fiscal 2019 Zacks Consensus Estimate hs jumped to $11.81 from $11.58 in the last 2 months with 2 estimates moving higher since the earnings report. That's earnings growth of 8.5%.
Analysts also expect revenue growth in fiscal 2019 of 9%.
The fiscal 2020 Zacks Consensus Estimate also ticked higher, jumping to $12.64 from $12.46 in the last month. That's another 7% earnings growth.
SYNNEX Shares Up Big to Start 2019
Like a lot of stocks, SYNNEX was sold off to end 2018. It has rebounded 21% to start 2019.
But it's still cheap, with a forward P/E of just 8.3 and a price-to-sales ratio of only 0.2.
For investors looking for a cheap technology stock, which also pays a dividend, SYNNEX is one to keep on the short list.
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SYNNEX Corporation (SNX): Free Stock Analysis Report
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