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While TD SYNNEX Corporation (NYSE:SNX) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 13% in the last quarter. But at least the stock is up over the last three years. However, it's unlikely many shareholders are elated with the share price gain of 52% over that time, given the rising market.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Check out our latest analysis for TD SYNNEX
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the three years of share price growth, TD SYNNEX actually saw its earnings per share (EPS) drop 3.6% per year.
Companies are not always focussed on EPS growth in the short term, and looking at how the share price has reacted, we don't think EPS is the most important metric for TD SYNNEX at the moment. So other metrics may hold the key to understanding what is influencing investors.
The modest 0.7% dividend yield is unlikely to be propping up the share price. It could be that the revenue growth of 9.9% per year is viewed as evidence that TD SYNNEX is growing. In that case, the company may be sacrificing current earnings per share to drive growth, and maybe shareholder's faith in better days ahead will be rewarded.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We know that TD SYNNEX has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling TD SYNNEX stock, you should check out this free report showing analyst profit forecasts.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for TD SYNNEX the TSR over the last 3 years was 212%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!