Overview
TD SYNNEX is a prominent global distributor and solutions aggregator in the IT sector, renowned for providing extensive supply chain services to original equipment manufacturers and software publishers. The company was formed by the merger of Tech Data and SYNNEX Corporation in 2021 and operates in over 100 countries with a workforce of approximately 22,000 employees.
Key Financial Data
TD SYNNEX recorded a revenue of $57.02 billion with a profit margin of 1.20%. The forward price-to-earnings (P/E) ratio is 9.57, reflecting potential investor interest at current levels. The enterprise value is approximately $13.47 billion. The company reports quarterly revenue growth of 5.20% year-over-year, with net income attributable to common stockholders amounting to $675.79 million.
Leadership
Patrick Zammit
Patrick Zammit is the Chief Executive Officer, effective from September 2024, succeeding Rich Hume who retired. Zammit's leadership focuses on driving profitable growth and enhancing technology adoption, especially in AI.
Marshall Witt
Marshall Witt is the Chief Financial Officer, serving since 2013, with over two decades of experience in financial management, having previously been the Controller for FedEx Corp.
Simon Leung
Simon Leung, as Chief Business Officer, oversees global mergers and acquisitions, enterprise risk management, and business continuity strategies, providing legal and strategic insights.
Corporate Values and Initiatives
TD SYNNEX values inclusion, collaboration, integrity, and excellence. It has been recognized as a "Best Place to Work for LGBTQ Equality" and received a "Perfect Score on Corporate Equality Index." The company is also certified by "Great Places to Work" and listed among "Fortune World’s Most Admired Companies." It is actively committed to reducing its carbon footprint and fostering diversity and inclusion.
Strategic Vision and Market Position
TD SYNNEX is positioned at the center of the technology partner ecosystem as a solutions and ideas aggregator. The strategic vision includes addressing market opportunities in the Internet of Things (IoT) and data utilization, with initiatives like the AI Accelerator to prepare partners for future technological advancements. With a robust financial standing and strategic leadership, TD SYNNEX is set to capitalize on global IT ecosystem demands.
Competitor Profiling
Key Competitors
TD SYNNEX faces competition from several well-established companies in the computer and technology industry. The main competitors include:
- Ingram Micro
- Accenture
- Deloitte Consulting
- IBM Consulting
- Arrow Electronics
- Avnet
- Quess Corp
- Concentrix
- Insight Enterprises
- ScanSource
- Agilysys
- PC Connection
Competitive Analysis
1. Ingram Micro Inc.: A key competitor with a strong position in technology distribution and supply chain services.
2. Accenture and IBM Consulting: Compete through large-scale consultancy services offering strategic solutions.
3. Arrow Electronics: With 2023 sales of $33 billion, competes through electronics and enterprise computing solutions.
4. Insight Enterprises: Renowned for IT solutions and Fortune 500 status, reported a 2021 revenue of $9.4 billion.
5. ScanSource: A hybrid distributor focusing on cloud computing and hardware, emphasizing cloud partner enablement.
6. Agilysys: Specializes in hospitality technology with integrated software solutions focused on customer needs.
7. PC Connection: Provides IT solutions with a rapid-response model, serving business and government sectors.
Market Position and Financial Insights
- TD SYNNEX has a market capital of $10.27 billion and revenue of $57.56 billion.
- Demonstrates outperformance of Insight Enterprises on key financial metrics.
- Market performance shows a 32.33% increase over the past year, showcasing strong growth.
- Operates on thin margins with a price-to-sales ratio of 0.18, enhancing competitive status.
Strategic Considerations
TD SYNNEX operates in a competitive market with specialized service providers and broad-spectrum IT consultants. Its network and distribution capabilities, alongside investment in emerging technologies and strategic partnerships, are vital for market fortification. Learning from competitors' service models and strategies will maintain TD SYNNEX's edge, ensuring sustained growth and innovation in the technology distribution and consultancy domain.
