Systemax Inc. Fundamental Analysis
Systemax Inc. (SYX) shows moderate financial fundamentals with a PE ratio of 20.27, profit margin of 6.36%, and ROE of 46.33%. The company generates $1.0B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SYX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSYX demonstrates superior asset utilization.
Valuation Score
ExcellentSYX trades at attractive valuation levels.
Growth Score
WeakSYX faces weak or negative growth trends.
Financial Health Score
ExcellentSYX maintains a strong and stable balance sheet.
Profitability Score
ModerateSYX maintains healthy but balanced margins.
Key Financial Metrics
Is SYX Expensive or Cheap?
P/E Ratio
SYX trades at 20.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SYX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Systemax Inc. at 12.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.19 times EBITDA. This signals the market has high growth expectations.
How Well Does SYX Make Money?
Net Profit Margin
For every $100 in sales, Systemax Inc. keeps $6.36 as profit after all expenses.
Operating Margin
Core operations generate 8.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $46.33 in profit for every $100 of shareholder equity.
ROA
Systemax Inc. generates $17.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Systemax Inc. generates limited operating cash flow of $68.68M, signaling weaker underlying cash strength.
Free Cash Flow
Systemax Inc. produces free cash flow of $65.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.74 in free cash annually.
FCF Yield
SYX converts 4.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.45
vs 25 benchmark
How SYX Stacks Against Its Sector Peers
| Metric | SYX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.27 | 26.21 | Better (Cheaper) |
| ROE | 46.33% | 1254.00% | Weak |
| Net Margin | 6.36% | -35113.00% (disorted) | Weak |
| Debt/Equity | 0.82 | 0.74 | Neutral |
| Current Ratio | 1.42 | 9.96 | Neutral |
| ROA | 17.44% | -1487045.00% (disorted) | Strong |
SYX outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Systemax Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
23.80%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-27.47%
Industry Style: Cyclical, Value, Infrastructure
Declining