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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 4.59
SYNT's Cash to Debt is ranked higher than
57% of the 1618 Companies
in the Global Information Technology Services industry.

( Industry Median: 25.64 vs. SYNT: 4.59 )
SYNT' s 10-Year Cash to Debt Range
Min: 4.59   Max: No Debt
Current: 4.59

Equity to Asset 0.73
SYNT's Equity to Asset is ranked higher than
78% of the 1589 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. SYNT: 0.73 )
SYNT' s 10-Year Equity to Asset Range
Min: 0.33   Max: 0.85
Current: 0.73

0.33
0.85
F-Score: 4
Z-Score: 11.25
M-Score: -2.32
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 32.45
SYNT's Operating margin (%) is ranked higher than
98% of the 1604 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.48 vs. SYNT: 32.45 )
SYNT' s 10-Year Operating margin (%) Range
Min: 2.49   Max: 32.45
Current: 32.45

2.49
32.45
Net-margin (%) 26.63
SYNT's Net-margin (%) is ranked higher than
97% of the 1602 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.67 vs. SYNT: 26.63 )
SYNT' s 10-Year Net-margin (%) Range
Min: 4.8   Max: 28.28
Current: 26.63

4.8
28.28
ROE (%) 30.40
SYNT's ROE (%) is ranked higher than
98% of the 1564 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.77 vs. SYNT: 30.40 )
SYNT' s 10-Year ROE (%) Range
Min: 8.26   Max: 58.59
Current: 30.4

8.26
58.59
ROA (%) 22.03
SYNT's ROA (%) is ranked higher than
99% of the 1616 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.63 vs. SYNT: 22.03 )
SYNT' s 10-Year ROA (%) Range
Min: 6.01   Max: 29.33
Current: 22.03

6.01
29.33
ROC (Joel Greenblatt) (%) 160.37
SYNT's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 1600 Companies
in the Global Information Technology Services industry.

( Industry Median: 30.96 vs. SYNT: 160.37 )
SYNT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 35.69   Max: 625
Current: 160.37

35.69
625
Revenue Growth (%) 15.50
SYNT's Revenue Growth (%) is ranked higher than
86% of the 1208 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.30 vs. SYNT: 15.50 )
SYNT' s 10-Year Revenue Growth (%) Range
Min: -0.8   Max: 33.4
Current: 15.5

-0.8
33.4
EBITDA Growth (%) 27.70
SYNT's EBITDA Growth (%) is ranked higher than
87% of the 951 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.70 vs. SYNT: 27.70 )
SYNT' s 10-Year EBITDA Growth (%) Range
Min: -23.5   Max: 97
Current: 27.7

-23.5
97
EPS Growth (%) 24.30
SYNT's EPS Growth (%) is ranked higher than
82% of the 892 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.80 vs. SYNT: 24.30 )
SYNT' s 10-Year EPS Growth (%) Range
Min: -8.4   Max: 71
Current: 24.3

-8.4
71
» SYNT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

SYNT Guru Trades in Q1 2013

Steven Cohen 9,692 sh (New)
Jeremy Grantham 7,100 sh (New)
Jim Simons 460,795 sh (+16.66%)
Chuck Royce 378,700 sh (+6.68%)
Joel Greenblatt 72,946 sh (+6.26%)
Paul Tudor Jones 5,100 sh (-31.08%)
John Hussman 50,000 sh (-41.18%)
Columbia Wanger 451,000 sh (-47.82%)
» More
Q2 2013

SYNT Guru Trades in Q2 2013

Third Avenue Management 311,690 sh (New)
Paul Tudor Jones 12,700 sh (+149.02%)
Joel Greenblatt 116,008 sh (+59.03%)
Jeremy Grantham 11,100 sh (+56.34%)
Jim Simons 468,412 sh (+1.65%)
Columbia Wanger 451,000 sh (unchged)
John Hussman 45,000 sh (-10%)
Chuck Royce 332,100 sh (-12.31%)
Steven Cohen 5,070 sh (-47.69%)
» More
Q3 2013

SYNT Guru Trades in Q3 2013

Murray Stahl 4,269 sh (New)
Third Avenue Management 319,275 sh (+2.43%)
Columbia Wanger 451,000 sh (unchged)
Steven Cohen Sold Out
John Hussman Sold Out
Jeremy Grantham Sold Out
Jim Simons 370,695 sh (-20.86%)
Chuck Royce 220,200 sh (-33.69%)
Joel Greenblatt 76,905 sh (-33.71%)
Paul Tudor Jones 5,600 sh (-55.91%)
» More
Q4 2013

SYNT Guru Trades in Q4 2013

Steven Cohen 4,159 sh (New)
Joel Greenblatt 118,072 sh (+53.53%)
Murray Stahl 5,787 sh (+35.56%)
Paul Tudor Jones 5,600 sh (unchged)
Third Avenue Management 318,315 sh (-0.3%)
Chuck Royce 214,300 sh (-2.68%)
Columbia Wanger 394,000 sh (-12.64%)
Jim Simons 283,700 sh (-23.47%)
» More
» Details

Insider Trades

Latest Guru Trades with SYNT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 53.53%0.09%$78.96 - $91.7 $ 85.12-2%118072
John Hussman 2013-09-30 Sold Out 0.13%$63.74 - $79.99 $ 85.1217%0
Joel Greenblatt 2013-09-30 Reduce -33.71%0.1%$63.74 - $79.99 $ 85.1217%76905
Joel Greenblatt 2013-06-30 Add 59.03%0.12%$61.77 - $68.34 $ 85.1231%116008
John Hussman 2013-03-31 Reduce -41.18%0.05%$51.98 - $67.52 $ 85.1243%50000
Joel Greenblatt 2012-09-30 Add 181.9%0.17%$56.94 - $63.2 $ 85.1243%61249
John Hussman 2012-06-30 Reduce -42.31%0.07%$53.48 - $61 $ 85.1249%90000
John Hussman 2012-03-31 Reduce -53.29%0.13%$45.44 - $55.72 $ 85.1281%156000
Joel Greenblatt 2012-03-31 New Buy0.1%$45.44 - $55.72 $ 85.1281%20225
John Hussman 2011-09-30 Add 21.01%0.04%$38.99 - $61.18 $ 85.1272%334000
John Hussman 2011-06-30 Add 294.29%0.2%$50 - $58.09 $ 85.1259%276000
John Hussman 2011-03-31 New Buy0.06%$47.8 - $59.6 $ 85.1259%70000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Syntel, Inc.

Third Avenue Management Comments on Syntel - Jul 02, 2013


While new to the Fund, Syntel (SYNT) is a name that has crossed our screens multiple times over the years.There has always been an excuse to pass: too illiquid, too expensive, too much customer concentration, or too many other investment opportunities. Yet each time it has crossed, it has been larger and more profitable. During its 15 years as a public company, Syntel has a remarkable record of compounding revenue at 12% while expanding margins, leading to earnings per share compounding at 21%, all with deminimus acquisitions and while generating significant excess cash. The company's growth can be attributed to the ongoing demand for outsourcing solutions as global corporations look everywhere to cut costs.

Syntel's recent appearance on our screens followed management's cut to its forecast in December 2012,calling for less growth as a large customer froze some of its spending. We revisited our notes after shares fell and noted a few changes:

• Freely tradable shares or "float" remain limited as founders Desai and Sethicontinueto own about 58% of shares out (aligning their interests), but the company's larger size has been mirrored by improving shareliquidity;

• Customer concentration remains relatively high, but concentration is mitigated by (i) a 5- to 8-year extension of one of its major contracts earlier in 2012 and (ii) the sticky, recurring nature of applications maintenance and business process outsourcing work;

• An unencumbered balance sheet with 15% of the company's market cap in cash (more than twice as much cash as total liabilities);

• Alowteensearningsmultiple, 6% freecash flowyield, reasonably attractive valuationmetricsfor a business of Syntel's quality and compelling growth prospects.

Third Avenue's Founder and Chairman Marty Whitman has long commented that the next perfect investment he finds will be the first and, similarly, Syntel is not without its imperfections. As noted, the company has two very large customers: American Express and State Street represent 44% of revenue combined. Syntel also operates in a highly competitive business, meaningful changes to the tax regime in India or the U.S.could hurt the company's economics, and downside protection is provided more via the growing and stable cash flows than by tangible asset values. Should another temporary hiccup emerge, we would look to build a meaningful position at a more discounted valuation.

From Third Avenue Management's semi-annual 2013 commentary.
Check out Third Avenue Management latest stock trades

Top Ranked Articles about Syntel, Inc.

Third Avenue Management Comments on Syntel
While new to the Fund, Syntel (SYNT) is a name that has crossed our screens multiple times over the years.There has always been an excuse to pass: too illiquid, too expensive, too much customer concentration, or too many other investment opportunities. Yet each time it has crossed, it has been larger and more profitable. During its 15 years as a public company, Syntel has a remarkable record of compounding revenue at 12% while expanding margins, leading to earnings per share compounding at 21%, all with deminimus acquisitions and while generating significant excess cash. The company's growth can be attributed to the ongoing demand for outsourcing solutions as global corporations look everywhere to cut costs.

Syntel's recent appearance on our screens followed management's cut to its forecast in December 2012,calling for less growth as a large customer froze some of its spending. We revisited our notes after shares fell and noted a few changes:

• Freely tradable shares or "float" remain limited as founders Desai and Sethicontinueto own about 58% of shares out (aligning their interests), but the company's larger size has been mirrored by improving shareliquidity;

• Customer concentration remains relatively high, but concentration is mitigated by (i) a 5- to 8-year extension of one of its major contracts earlier in 2012 and (ii) the sticky, recurring nature of applications maintenance and business process outsourcing work;

• An unencumbered balance sheet with 15% of the company's market cap in cash (more than twice as much cash as total liabilities);

• Alowteensearningsmultiple, 6% freecash flowyield, reasonably attractive valuationmetricsfor a business of Syntel's quality and compelling growth prospects.

Third Avenue's Founder and Chairman Marty Whitman has long commented that the next perfect investment he finds will be the first and, similarly, Syntel is not without its imperfections. As noted, the company has two very large customers: American Express and State Street represent 44% of revenue combined. Syntel also operates in a highly competitive business, meaningful changes to the tax regime in India or the U.S.could hurt the company's economics, and downside protection is provided more via the growing and stable cash flows than by tangible asset values. Should another temporary hiccup emerge, we would look to build a meaningful position at a more discounted valuation.

From Third Avenue Management's semi-annual 2013 commentary. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.10
SYNT's P/E(ttm) is ranked higher than
77% of the 1119 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.20 vs. SYNT: 16.10 )
SYNT' s 10-Year P/E(ttm) Range
Min: 8   Max: 32
Current: 16.1

8
32
P/B 4.90
SYNT's P/B is ranked lower than
62% of the 1504 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.45 vs. SYNT: 4.90 )
SYNT' s 10-Year P/B Range
Min: 3.09   Max: 10.67
Current: 4.9

3.09
10.67
P/S 4.32
SYNT's P/S is ranked lower than
71% of the 1650 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. SYNT: 4.32 )
SYNT' s 10-Year P/S Range
Min: 1.83   Max: 7.02
Current: 4.32

1.83
7.02
PFCF 20.00
SYNT's PFCF is ranked higher than
61% of the 874 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.50 vs. SYNT: 20.00 )
SYNT' s 10-Year PFCF Range
Min: 10.17   Max: 176.92
Current: 20

10.17
176.92
EV-to-EBIT 11.50
SYNT's EV-to-EBIT is ranked higher than
76% of the 1278 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.39 vs. SYNT: 11.50 )
SYNT' s 10-Year EV-to-EBIT Range
Min: 5.8   Max: 29.4
Current: 11.5

5.8
29.4
PEG 0.80
SYNT's PEG is ranked higher than
86% of the 601 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. SYNT: 0.80 )
SYNT' s 10-Year PEG Range
Min: 0.36   Max: 19.22
Current: 0.8

0.36
19.22
Shiller P/E 24.20
SYNT's Shiller P/E is ranked higher than
75% of the 616 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.33 vs. SYNT: 24.20 )
SYNT' s 10-Year Shiller P/E Range
Min: 12.94   Max: 48.28
Current: 24.2

12.94
48.28

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.10
SYNT's Dividend Yield is ranked lower than
96% of the 822 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.80 vs. SYNT: 0.10 )
SYNT' s 10-Year Dividend Yield Range
Min: 0.2   Max: 1.73
Current: 0.1

0.2
1.73
Dividend growth (3y) -100.00
SYNT's Dividend growth (3y) is ranked higher than
52% of the 324 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.60 vs. SYNT: -100.00 )
SYNT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 26
Current: -100

0
26
Yield on cost (5-Year) 0.10
SYNT's Yield on cost (5-Year) is ranked lower than
96% of the 862 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.84 vs. SYNT: 0.10 )
SYNT' s 10-Year Yield on cost (5-Year) Range
Min: 0.2   Max: 1.73
Current: 0.1

0.2
1.73
Share Buyback Rate -0.20
SYNT's Share Buyback Rate is ranked higher than
80% of the 1057 Companies
in the Global Information Technology Services industry.

( Industry Median: -1.60 vs. SYNT: -0.20 )
SYNT' s 10-Year Share Buyback Rate Range
Min: 9.5   Max: -1.1
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Net Cash 9.00
SYNT's Price/Net Cash is ranked higher than
63% of the 481 Companies
in the Global Information Technology Services industry.

( Industry Median: 13.30 vs. SYNT: 9.00 )
SYNT' s 10-Year Price/Net Cash Range
Min: 5.4   Max: 50
Current: 9

5.4
50
Price/Net Current Asset Value 7.30
SYNT's Price/Net Current Asset Value is ranked higher than
64% of the 672 Companies
in the Global Information Technology Services industry.

( Industry Median: 11.00 vs. SYNT: 7.30 )
SYNT' s 10-Year Price/Net Current Asset Value Range
Min: 3.64   Max: 16.53
Current: 7.3

3.64
16.53
Price/Tangible Book 4.90
SYNT's Price/Tangible Book is ranked lower than
53% of the 1245 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.00 vs. SYNT: 4.90 )
SYNT' s 10-Year Price/Tangible Book Range
Min: 2.31   Max: 9.13
Current: 4.9

2.31
9.13
Price/DCF (Projected) 1.70
SYNT's Price/DCF (Projected) is ranked higher than
59% of the 753 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.50 vs. SYNT: 1.70 )
SYNT' s 10-Year Price/DCF (Projected) Range
Min: 1.34   Max: 2.64
Current: 1.7

1.34
2.64
Price/Median PS Value 1.20
SYNT's Price/Median PS Value is ranked higher than
60% of the 1516 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. SYNT: 1.20 )
SYNT' s 10-Year Price/Median PS Value Range
Min: 0.37   Max: 1.51
Current: 1.2

0.37
1.51
Price/Peter Lynch Fair Value 0.90
SYNT's Price/Peter Lynch Fair Value is ranked higher than
84% of the 365 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.50 vs. SYNT: 0.90 )
SYNT' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.53   Max: 3.68
Current: 0.9

0.53
3.68
Price/Graham Number 1.90
SYNT's Price/Graham Number is ranked higher than
62% of the 911 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.20 vs. SYNT: 1.90 )
SYNT' s 10-Year Price/Graham Number Range
Min: 1.45   Max: 3.77
Current: 1.9

1.45
3.77
Earnings Yield (Greenblatt) 8.70
SYNT's Earnings Yield (Greenblatt) is ranked higher than
77% of the 1324 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.40 vs. SYNT: 8.70 )
SYNT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.4   Max: 17.2
Current: 8.7

3.4
17.2
Forward Rate of Return (Yacktman) 21.04
SYNT's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1007 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.32 vs. SYNT: 21.04 )
SYNT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 3.8   Max: 51.4
Current: 21.04

3.8
51.4

Business Description

Industry: Application Software » Information Technology Services
Compare:ACN, INFY, CTSH, IT, CIOXY » details
Traded in other countries:SYE.Germany
Syntel, Inc., was incorporated under Michigan law on April 15, 1980. The Company is a provider of information technology and Knowledge Process Outsourcing (KPO) services. Through its Applications Outsourcing offering, the Company provides complete software applications development, maintenance, testing, and migration and infrastructure services. It leverages its proprietary methodologies, processes and tools to assimilate the customer's business process and technology system knowledge to develop and deliver customized services. Through its KPO offerings, the Company provides outsourced solutions for knowledge and business processes. It is focused on high-value, domain-intensive KPO solutions. It uses a proprietary tool called Identeon to assist with strategic assessments of business processes and to identify the right ones for outsourcing. It focuses on the middle and back-office business processes of the transaction cycle in the capital markets, banking, healthcare and insurance industries. Its insurance KPO services include claims processing and policy administration, among others. Its banking and capital markets KPO services cover investment management operations including brokerage, middle office reconciliation, transfer agency, fund accounting, performance and attribution, trade processing, compliance monitoring, corporate actions, custody reconciliation, hedge fund administration and data management. KPO services for healthcare and life sciences include records management, clinical data management and claims solutions. Through its e-Business practices, the Company provides advanced technology services in the areas of architecting, implementing and maintaining Web Solutions, Data Warehousing/Business Intelligence, Enterprise Application Integration (EAI), Business Process Management (BPM) and Enterprise Resource Planning solutions. The Company has developed capabilities on the technology platforms/products in the above areas to provide implementation, deployment and maintenance solutions for its clients. Through TeamSourcing, the Company provides professional IT consulting services. Its competitors include system integrator firms, application software companies, professional services groups of computer equipment companies, and contract programming companies.

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