Syntel, Inc. (SYNT)

Stockscouter rating of 10 and high 3 and 12 month RS

IT and knowledge management firm with excellent fundamentals, no debt and highly productive, strong growth.

ROA 30%? You've gotta be kidding me
Zero debt, consistently increasing revenues, low PEG, I'm in :)

Intrinsic value of $50.77

Fantastic balance sheet and looks cheap right now.

pricing pressure kills

Operating cash flow is positive and rising, profit margin 21%, gross margin 44%, cash on hand is increasing

Undervalued growth stock. EPS of 2.1 coupled with strong revenue growth (22%) and EPS growth (39%!) in a weak economy are strong indicators of potential upside. 0 long term debt. 44% insider stock ownership, plus 31% institutional ownership. Low P/E of 9.1 makes this a strong buy!

1% of the IBD 100.

Syntel is a US based outsourcing company but that probably understates their business plan. They take over almost anything related to IT that a customer can't tackle or doesn't make sense to tackle. Customers, an insurance company for example, is in the insurance business, not in the playing with the latest tech widgets business. IT is at best a distraction and at worst a capital and a resource drain. Syntel will get the job done in the best way possible, onshore, offshore or a combination. The "combination" idea I have personal experience with where the development team is scattered around the world but thanks to modern communications and development tools, the members work as closely as if they were in the same building except progress proceeds 24 hours a day instead of 8 or 10. They also have areas of special expertise, like building and maintaining websites. TTM ROIC is 35% up from a 5 year average of 27%. Debt to equity is zero. No debt. Growth is about 18%. How is the company fairing though this recession? Last quarter Syntel reported a year over year quarterly revenue increase of 18% and earnings of 21%. In terms of valuation, PEG is .08, trailing PE 14 and forward PE 12. I have the historical mean at about 20.

hopefully to catch the stock on the way up

Management Effectiveness and Profitability metric values are all in double digits, zero debt, and its P/E ratio is almost the same as its net profit margin - what's not to like?

All stats off the charts - great intrinsic value to price ratio

why not

solid company on the rise

I can't find anything wrong with this one.

5 Star/Small cap/Pays dividend