TD Synnex $SNX looks interesting heading into FY25e - I've got a FY25e eFCF yield of 8.6% / PE of 7.7x.

The company has re-affirmed it will be allocating >90% of eFCF into share buybacks. The company HAS become a share cannibal and at this SP can reduce it's float by 50% over the next five years.

Top-line growth has rebounded, and there is optionality in spinning out / selling Hyve, its ODM segment, which on conservative estimates is worth 30% of the company's EV despite contributing 15% of group EBIT.

It's mispriced because despite Hyve (as a massive stealth AI DC build-out beneficiary) being higher margin and growing faster than the group, it has temporarily depressed margins due to on-boarding hyperscale customer and will lead to a slight WC build.

Although, value added distributors have traded on cheap multiples forever.

I see path to 15-20% IRR's over the next five to ten years, even in the absence of discretely monetising Hyve.

Would love to hear thoughts if any.