CluenexTD Synnex SNX
TD Synnex scores weak on business quality (3.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What TD Synnex does
TD Synnex connects technology vendors with thousands of IT resellers, making money by distributing hardware, software, and cloud solutions globally. The business relies on massive logistics and credit intermediation to move products from top-tier makers to corporate buyers.
- What it does best
TD Synnex operates at a massive global scale, driving $69.8 billion in revenue with a gross margin of 7.1%. This scale allows it to undercut smaller distributors like AVT at 10.4% gross margin while keeping operating costs lean.
- The main risk
Thin margins leave little room for error when demand softens or financing costs rise. With an operating margin of 2.6% and net margin of 1.6%, any disruption in enterprise IT spending hits net income immediately.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 2.6% and free cash flow margin is 4%, putting profitability in the bottom quartile of its sector. Low margins mean scale does not translate into high cash conversion.
The company holds a distribution network moat that locks in enterprise vendors and fragmented resellers. Its gross margin sits in the bottom decile of its sector at 2%, reflecting intense wholesale price competition.
Revenue reached $69.8 billion with a 6.9% growth rate, showing steady top-line gains. History shows revenue expanding from $57.6 billion in 2023, though growth remains in the bottom quartile of its sector at the 28th percentile.
Total debt sits at $4.6 billion against $2.4 billion in cash, resulting in a net debt of $2.2 billion. Interest coverage is 5.0x, meaning operating earnings cover interest payments with modest cushion as conditions soften.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $326K outside pre-planned sales.
Our sealed record on SNX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
TD Synnex scores weak on the Cluenex quality check (3.6 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $326K outside pre-planned sales.
Jan 6, 2027, before the open.
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Cite this page: Cluenex, “TD Synnex (SNX)”, https://cluenex.com/stocks/snx/, data as of Oct 10, 2026.