+ Watch SYNT
on My Watchlist
The Company is a provider of information technology and Business Process Outsourcing services to Global 2000 companies.
A reasonable valuation for this cloud and other technologies out-sourcing technology company. Earnings growth should exceed twenty-two percent compounded over the next five years or so for about a seventeen multiple.Kahuna, CFA
Long. IT company has great growth and trading at an attractive valuation. Tons of cash on balance sheet too.
Being global is a positive now with better numbers to come.
Well, this company has four products they market: Application Outsourcing AO, Knowledge Process Outsourcing KPO, e-Busisness eB and TeamSourcing T. I added those extra letters because if you are going to abbreviate a product to try to get consumers to use those letters then you may as well abbreviate everything. So, I'm guessing that AO means they outsource their applications. Well, that will save some money. KPO I believe means that out source their knowledge process, so this begs the question, is there anyone at the company that does anything locally. eB, well, that is where everyone including grandma who found a way to sell a by-product of her pet rabbit farm on the site: GrandmaRabbitPelletFertilizer.com is hoping to make enough money to buy a few lobbyists like Big Petroleum does all the time at the US Capital.And T, which stands for TeamSourcing. Yes, just when all their products were simple words in a dictionary they had to throw in a new word with a capital S in the middle, like it is some product that everyone will die for. Personally, I like T, but if they get it together, and take apart these two words then I could live with TS as a name for that product. So, team sourcing must be a product where they throw a bunch of nerdy geeks in a room ( hence team) and force them to come up with an solution to charge the customers more money, hence the Source part of that product.Never-the-less, as investors are not usually interested in the product or how it is produced or marketed, we are interested in the bottom line. So lets look as some bottom lines:This stock popped up on my computer radar and I was impressed by some of the stuff I saw: On pe they are not too bad at 15.18, they have a yield of 0.30% which isn't stellar, but a lot of companies do not have any dividends. Their peg at 70.90/51.00% is quite nice. Their earnings to book ratio is quite nice, but because this is a great company, their price to book has increased. On the plus side, they have no Debt so their Debt to Equity Ratio is NA. This will allow them to focus on growing the company, not paying their debtors.On earnings growth:Well, most of the analysts are a little fearful. This company has met and most often exceeded the analysts expectations. This is good for the company, but when you look at past growth and estimate future growth from it, I can see why a few analysts probably will not overestimate earning for this company feeling that the law of averages says they may come down some sometime soon and no analyst like updating their resume to walk the street in these economically trying times. So, it is better to underestimate than overestimate because if they come in better, then it is easier to live with a surprise than a disappointment. But if you are into numbers, you will probably see that they have had great historical growth and if they can continue, then you certainly will feel better riding this horse than some nag that crosses the finish line just as sunset.Income:All of the numbers on the income sheet look good to me. Gross margin, operating margin, net margin and total revenue growth are as good as most people would like. This is reflective of their last few quarters and their last 4 or 5 annuals. No wonder this stock has become slightly pricey.Anyway, I would place a bet on this dark horse if I had some big bucks. I'm a small time investor, that just likes to learn, and given what I have seen, I would feel comfortable hold this one for a length of time.I'll let you do the analysis on the free cash flow. I still need to work that out but if it looks good, then I'm comfortable with this on my Caps page. So, I'm in at 71/sh sell at 100/sh and reanalyze if it falls to 50/sh.
Bharat Desai made himself a billionaire with this company, and the share price has actually done a lot better since he stepped down as CEO. Now Syntel just keeps beating quarter after quarter. If the performance continues, it looks awfully cheap.
Great ROE & ROA; very good PEG; steady EPS & price growth; lots of cash
quality company. Paying a slight premium on the price, but has the ROE, net margins, earnings growth history, etc so I'm not too concerned.
This is one of my STARZ.Here is the thought process on this STAR: a) Divided rate over Zerob) 3 Year Beta between -5 & +3c) 15% + Insider ownershipd) No greater than -50% Growth rate for the last 3 years (tough last couple of years so good that insiders are still owning the stocks)e) Current CAPS rating between 3 Stars & 5 StarsOpen to all Industries and Sectors screened this down to just 250 stocks. I like round numbers. 12 of them I already own through other screening tools. I tend to be somewhat conservative but looking for 3 things at this point in my investing:1. Stability & Strength2. Yield and Modest Growth3. Strong Position within a sector regardless of whether the entire sector is strong or not. Each sector has to perform to some degree for the whole world economy to function. I am looking for 5 or more years down the road, ROI, and Growth. Not looking for rockets, just stars. This is a Star!!
PEG less than 0.5 with a strong financials makes this a safe bet.
Great value, good growth, safe…just good overall
ROA 30%? You've gotta be kidding meZero debt, consistently increasing revenues, low PEG, I'm in :)
Fantastic balance sheet and looks cheap right now.
pricing pressure kills
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?
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