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Systemax

NYSE:SYX
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SYX
NYSE
$860M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Systemax Inc. operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. The last earnings update was 36 days ago. More info.


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SYX Share Price and Events
7 Day Returns
0.8%
NYSE:SYX
0.2%
US Trade Distributors
-0.3%
US Market
1 Year Returns
-10.3%
NYSE:SYX
20.6%
US Trade Distributors
18.6%
US Market
SYX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Systemax (SYX) 0.8% 3% 15.1% -10.3% 160.2% 86.9%
US Trade Distributors 0.2% -0.4% 14% 20.6% 22.3% 34.4%
US Market -0.3% 2.2% 5.6% 18.6% 36.2% 52.2%
1 Year Return vs Industry and Market
  • SYX underperformed the Trade Distributors industry which returned 20.6% over the past year.
  • SYX underperformed the Market in United States of America which returned 18.6% over the past year.
Price Volatility
SYX
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Systemax undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Systemax to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Systemax.

NYSE:SYX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SYX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 21%) (8.27%))
0.998
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.998 * 5.44%)
7.17%

Discounted Cash Flow Calculation for NYSE:SYX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Systemax is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:SYX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.17%)
2020 56.13 Analyst x1 52.37
2021 64.09 Analyst x1 55.80
2022 66.40 Est @ 3.61% 53.95
2023 68.43 Est @ 3.05% 51.87
2024 70.24 Est @ 2.66% 49.69
2025 71.92 Est @ 2.38% 47.47
2026 73.49 Est @ 2.19% 45.26
2027 75.00 Est @ 2.05% 43.10
2028 76.47 Est @ 1.96% 41.00
2029 77.92 Est @ 1.89% 38.98
Present value of next 10 years cash flows $479.00
NYSE:SYX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $77.92 × (1 + 1.74%) ÷ (7.17% – 1.74%)
$1,459.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,459.78 ÷ (1 + 7.17%)10
$730.35
NYSE:SYX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $479.00 + $730.35
$1,209.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,209.35 / 37.53
$32.22
NYSE:SYX Discount to Share Price
Calculation Result
Value per share (USD) From above. $32.22
Current discount Discount to share price of $23.34
= -1 x ($23.34 - $32.22) / $32.22
27.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Systemax is available for.
Intrinsic value
28%
Share price is $23.34 vs Future cash flow value of $32.22
Current Discount Checks
For Systemax to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Systemax's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Systemax's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Systemax's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Systemax's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SYX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $1.36
NYSE:SYX Share Price ** NYSE (2019-12-06) in USD $23.34
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 16.8x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.48x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Systemax.

NYSE:SYX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SYX Share Price ÷ EPS (both in USD)

= 23.34 ÷ 1.36

17.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Systemax is overvalued based on earnings compared to the US Trade Distributors industry average.
  • Systemax is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Systemax's expected growth come at a high price?
Raw Data
NYSE:SYX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
13.4%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.06x
United States of America Market PEG Ratio Median Figure of 2,045 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:SYX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.13x ÷ 13.4%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Systemax is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Systemax's assets?
Raw Data
NYSE:SYX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $4.42
NYSE:SYX Share Price * NYSE (2019-12-06) in USD $23.34
United States of America Trade Distributors Industry PB Ratio Median Figure of 51 Publicly-Listed Trade Distributors Companies 1.69x
United States of America Market PB Ratio Median Figure of 5,088 Publicly-Listed Companies 1.78x
NYSE:SYX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SYX Share Price ÷ Book Value per Share (both in USD)

= 23.34 ÷ 4.42

5.28x

* Primary Listing of Systemax.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Systemax is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Systemax's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Systemax has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Systemax expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Systemax expected to grow at an attractive rate?
  • Systemax's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Systemax's earnings growth is positive but not above the United States of America market average.
  • Systemax's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SYX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SYX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 13.4%
NYSE:SYX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.8%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SYX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SYX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,071 70 66 1
2020-12-31 1,000 61 55 2
2019-12-31 948 63 48 2
2019-12-07
NYSE:SYX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 942 63 51
2019-06-30 934 12 52
2019-03-31 917 -15 51
2018-12-31 897 -22 50
2018-09-30 874 -8 70
2018-06-30 842 46 66
2018-03-31 702 64 64
2017-12-31 792 46 66
2017-09-30 893 34 44
2017-06-30 979 6 35
2017-03-31 1,186 -8 26
2016-12-31 753 -57 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Systemax's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
  • Systemax's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SYX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Systemax Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SYX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.73 1.73 1.73 1.00
2020-12-31 1.44 1.47 1.41 2.00
2019-12-31 1.27 1.30 1.23 2.00
2019-12-07
NYSE:SYX Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 1.36
2019-06-30 1.40
2019-03-31 1.36
2018-12-31 1.33
2018-09-30 1.88
2018-06-30 1.78
2018-03-31 1.73
2017-12-31 1.77
2017-09-30 1.20
2017-06-30 0.94
2017-03-31 0.69
2016-12-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Systemax is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Systemax's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Systemax has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Systemax performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Systemax's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Systemax has delivered over 20% year on year earnings growth in the past 5 years.
  • Systemax's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Systemax's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
Systemax's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Systemax Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SYX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 942.40 50.90 260.90
2019-06-30 934.30 52.30 256.70
2019-03-31 916.90 50.80 253.40
2018-12-31 896.90 49.50 248.30
2018-09-30 873.70 69.80 240.10
2018-06-30 842.30 66.00 235.80
2018-03-31 701.50 63.90 219.20
2017-12-31 791.80 65.50 227.20
2017-09-30 892.90 44.40 234.40
2017-06-30 978.70 34.70 246.70
2017-03-31 1,186.00 25.70 283.20
2016-12-31 753.10 3.90 226.30
2016-09-30 1,339.90 -6.10 297.50
2016-06-30 1,473.00 -6.00 305.40
2016-03-31 1,629.40 -25.00 306.50
2015-12-31 1,243.50 -24.00 287.10
2015-09-30 963.80 -56.80 262.40
2015-06-30 1,365.90 -61.30 302.10
2015-03-31 1,742.90 -50.80 342.10
2014-12-31 2,104.20 -32.00 375.00
2014-09-30 3,404.10 -31.80 491.80
2014-06-30 3,370.50 -40.60 488.10
2014-03-31 3,345.10 -40.50 484.60
2013-12-31 1,975.40 -43.00 355.30
2013-09-30 3,413.00 -51.00 484.50
2013-06-30 3,468.20 -25.40 488.60
2013-03-31 3,511.70 -21.60 487.20
2012-12-31 3,544.30 -8.00 479.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Systemax has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Systemax used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • Systemax has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Systemax's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Systemax has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Systemax's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Systemax's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Systemax is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Systemax's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Systemax's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Systemax has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Systemax Company Filings, last reported 2 months ago.

NYSE:SYX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 165.90 0.00 97.60
2019-06-30 156.10 0.00 90.80
2019-03-31 144.00 0.00 70.00
2018-12-31 137.70 0.00 295.40
2018-09-30 371.30 0.00 302.80
2018-06-30 197.30 0.00 96.90
2018-03-31 224.00 0.00 141.00
2017-12-31 211.80 0.00 184.50
2017-09-30 235.50 0.00 176.00
2017-06-30 224.40 0.00 159.80
2017-03-31 209.50 0.00 144.50
2016-12-31 214.40 0.00 149.70
2016-09-30 221.80 0.00 152.40
2016-06-30 229.00 0.00 165.20
2016-03-31 238.40 0.00 163.20
2015-12-31 253.90 0.00 215.10
2015-09-30 288.70 0.00 136.10
2015-06-30 301.70 0.00 144.00
2015-03-31 326.40 0.00 132.90
2014-12-31 359.60 0.00 165.00
2014-09-30 392.00 0.00 133.60
2014-06-30 400.90 0.00 153.30
2014-03-31 404.10 0.00 159.70
2013-12-31 406.20 0.00 181.40
2013-09-30 423.50 0.00 173.30
2013-06-30 427.60 0.00 138.60
2013-03-31 433.80 0.00 134.70
2012-12-31 446.30 0.00 150.70
  • Systemax has no debt.
  • Systemax has not taken on any debt in the past 5 years.
  • Systemax has no debt, it does not need to be covered by operating cash flow.
  • Systemax has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Systemax's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Systemax has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Systemax's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.06%
Current annual income from Systemax dividends.
If you bought $2,000 of Systemax shares you are expected to receive $41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Systemax's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Systemax's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SYX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1959 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SYX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-12-07
NYSE:SYX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-01 0.480 2.140
2019-10-29 0.480 2.142
2019-08-06 0.480 2.219
2019-07-30 0.480 2.367
2019-05-07 0.480 2.291
2019-04-30 0.480 2.046
2019-03-14 0.480 2.148
2019-02-26 0.480 2.294
2018-10-30 0.440 1.707
2018-08-07 0.440 1.342
2018-07-31 0.440 1.086
2018-05-08 0.440 1.230
2018-05-01 0.440 1.434
2018-03-15 0.440 1.503
2018-02-27 0.440 1.529
2017-10-31 0.400 1.317
2017-08-08 0.400 1.557
2017-08-01 0.400 1.714
2017-05-11 0.400 2.237
2017-05-04 0.400 2.550
2017-03-16 0.200 1.827
2017-02-28 0.200 2.400
2016-08-02 0.200 2.406

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Systemax has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Systemax only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Systemax's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Systemax's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Systemax afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Systemax has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Systemax's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barry Litwin
COMPENSATION $114,340
AGE 52
TENURE AS CEO 0.9 years
CEO Bio

Mr. Barry Litwin is Chief Executive Officer at Systemax Inc., since January 7, 2019 and its Director since July 2017. Mr. Litwin serves as Senior Vice President of Marketing at Newark Corporation. Mr. Litwin has been the Chief Executive Officer of Adorama, Inc. since 2015. He served as Vice President of E-Commerce at Office Depot, Inc. from June 2010 to August 2012. His previous executive roles included overseeing e-commerce and digital strategy for Sears Holdings, Inc and Newark Electronics, Inc. He served as an Independent Director of Systemax Inc. since July 2017. Mr. Litwin graduated from Indiana University with a BS degree and an MBA in Operations from Loyola University, Quinlan School of Business.

CEO Compensation
  • Barry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Barry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Systemax management team in years:

2.9
Average Tenure
55
Average Age
  • The tenure for the Systemax management team is about average.
Management Team

Richard Leeds

TITLE
Executive Chairman
COMPENSATION
$991K
AGE
59

Barry Litwin

TITLE
CEO & Director
COMPENSATION
$114K
AGE
52
TENURE
0.9 yrs

Tex Clark

TITLE
VP & CFO
COMPENSATION
$635K
AGE
37
TENURE
3.2 yrs

Bob Dooley

TITLE
President of Industrial Products Group
COMPENSATION
$1M
AGE
65
TENURE
29.9 yrs

Ritesh Chaturbedi

TITLE
Senior VP & COO
AGE
41
TENURE
0.9 yrs

Manoj Shetty

TITLE
Senior VP & Chief Information Officer
AGE
58
TENURE
5.3 yrs

Eric Lerner

TITLE
Senior VP & General Counsel
COMPENSATION
$1M
AGE
61
TENURE
7.6 yrs

Donna Fielding

TITLE
Senior VP & Chief Human Resources Officer
AGE
48
TENURE
1.9 yrs

Jacques Thefo

TITLE
Executive Vice President of France
TENURE
2.8 yrs

Norman Kough

TITLE
Executive Vice President of Netherlands & Sweden
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Systemax board of directors in years:

7.3
Average Tenure
61
Average Age
  • The tenure for the Systemax board of directors is about average.
Board of Directors

Barry Litwin

TITLE
CEO & Director
COMPENSATION
$114K
AGE
52
TENURE
2.4 yrs

Bruce Leeds

TITLE
Vice Chairman
COMPENSATION
$985K
AGE
63
TENURE
24.7 yrs

Richard Leeds

TITLE
Executive Chairman
COMPENSATION
$991K
AGE
59
TENURE
3.8 yrs

Robert Leeds

TITLE
Vice Chairman
COMPENSATION
$986K
AGE
63
TENURE
24.7 yrs

Bob Rosenthal

TITLE
Lead Independent Director
COMPENSATION
$155K
AGE
70
TENURE
13.2 yrs

Chad Lindbloom

TITLE
Independent Director
COMPENSATION
$118K
AGE
54
TENURE
2 yrs

Larry Reinhold

TITLE
Director
COMPENSATION
$1M
AGE
59
TENURE
10.8 yrs

Paul Pearlman

TITLE
Independent Director
AGE
65
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Systemax's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Systemax has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Fundamental Investors Might Love Systemax Inc. (NYSE:SYX)

NYSE:SYX Income Statement, September 3rd 2019 SYX's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. … Investors have the opportunity to buy into the stock to reap capital gains, if SYX's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … Take a look at our free research report of analyst consensus for SYX’s outlook.Dividend Income vs Capital Gains: Does SYX return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends?

Simply Wall St -

Can You Imagine How Chuffed Systemax's (NYSE:SYX) Shareholders Feel About Its 162% Share Price Gain?

(NYSE:SYX) share price is 162% higher than it was three years ago. … There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.

Simply Wall St -

Does Systemax Inc. (NYSE:SYX) Have A Place In Your Dividend Portfolio?

Dividend paying companies with growing earnings can be highly rewarding in the long term. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. … We were also glad to see it growing earnings, although its dividend history is not as long as we'd like.

Simply Wall St -

Why Systemax Inc.’s (NYSE:SYX) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Systemax: 0.31 = US$62m ÷ (US$358m - US$160m) (Based on the trailing twelve months to March 2019.) Therefore, Systemax has an ROCE of 31%.

Simply Wall St -

Should You Be Worried About Insider Transactions At Systemax Inc. (NYSE:SYX)?

So we'll take a look at whether insiders have been buying or selling shares in Systemax Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Systemax Systemax Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the , Thomas Axmacher, for US$196k worth of shares, at about US$39.07 per share. … It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Systemax insiders selling.

Simply Wall St -

Is Systemax Inc. (NYSE:SYX) Trading At A 45% Discount?

Today, we will estimate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $51.34 $66.60 $74.83 $81.91 $88.00 $93.31 $98.01 $102.27 $106.22 $109.96 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 12.35% Est @ 9.46% Est @ 7.44% Est @ 6.03% Est @ 5.04% Est @ 4.35% Est @ 3.86% Est @ 3.52% Present Value ($, Millions) Discounted @ 8.61% $47.27 $56.47 $58.41 $58.87 $58.24 $56.86 $54.99 $52.84 $50.53 $48.16 Present Value of 10-year Cash Flow (PVCF)= $542.65m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.

Simply Wall St -

Here's What Systemax Inc.'s (NYSE:SYX) P/E Is Telling Us

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Systemax: P/E of 15.55 = $21.21 ÷ $1.36 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Since Systemax holds net cash of US$8.1m, it can spend on growth, justifying a higher P/E ratio than otherwise. … The Bottom Line On Systemax's P/E Ratio Systemax trades on a P/E ratio of 15.6, which is below the US market average of 17.5.

Simply Wall St -

Is Systemax Inc.'s (NYSE:SYX) Balance Sheet Strong Enough To Weather A Storm?

SYX’s Debt (And Cash Flows) SYX has increased its debt level by about US$62m over the last 12 months including long-term debt. … Next Steps: Although SYX’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. … I suggest you continue to research Systemax to get a better picture of the small-cap by looking at: Future Outlook: What are well-informed industry analysts predicting for SYX’s future growth?

Simply Wall St -

Why I Like Systemax Inc. (NYSE:SYX)

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Systemax Inc.

Simply Wall St -

What Type Of Shareholder Owns Systemax Inc.'s (NYSE:SYX)?

(NYSE:SYX), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … It has a market capitalization of US$860m, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

Company Info

Description

Systemax Inc. operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. It sells a range of maintenance, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance products, furniture and office products, workbenches and shop desks, HVAC/R and fans, safety and security products, outdoor and grounds maintenance products, tools and instruments, and office and school supplies. The company also sells plumbing products and pumps, packaging products and supplies, electrical and lighting products, food service products and appliances, raw materials and building supplies, motors and power transmission, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance products, and fasteners and hardware. It offers its products under the Global, GlobalIndustrial.com, Nexel Paramount, and Interion brand names. The company offers its products to for-profit businesses, educational organizations, and government entities through its relationship marketers, catalog mailings, and e-commerce sites. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York.

Details
Name: Systemax Inc.
SYX
Exchange: NYSE
Founded: 1949
$860,214,553
37,531,176
Website: http://www.systemax.com
Address: Systemax Inc.
11 Harbor Park Drive,
Port Washington,
New York, 11050,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SYX Common Stock New York Stock Exchange US USD 27. Jun 1995
Number of employees
Current staff
Staff numbers
1,550
Systemax employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/07 23:46
End of day share price update: 2019/12/06 00:00
Last estimates confirmation: 2019/10/30
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.