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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 5.76
SYNT's Cash to Debt is ranked higher than
68% of the 2073 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.15 vs. SYNT: 5.76 )
SYNT' s 10-Year Cash to Debt Range
Min: 3.71   Max: No Debt
Current: 5.76

Equity to Asset 0.76
SYNT's Equity to Asset is ranked higher than
85% of the 2005 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. SYNT: 0.76 )
SYNT' s 10-Year Equity to Asset Range
Min: 0.35   Max: 0.86
Current: 0.76

0.35
0.86
F-Score: 5
Z-Score: 10.46
M-Score: -2.56
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 (%) 30.06
SYNT's Operating margin (%) is ranked higher than
97% of the 2055 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.43 vs. SYNT: 30.06 )
SYNT' s 10-Year Operating margin (%) Range
Min: 2.51   Max: 32.45
Current: 30.06

2.51
32.45
Net-margin (%) 27.28
SYNT's Net-margin (%) is ranked higher than
97% of the 2055 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.74 vs. SYNT: 27.28 )
SYNT' s 10-Year Net-margin (%) Range
Min: 3.04   Max: 28.28
Current: 27.28

3.04
28.28
ROE (%) 31.11
SYNT's ROE (%) is ranked higher than
96% of the 1999 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.10 vs. SYNT: 31.11 )
SYNT' s 10-Year ROE (%) Range
Min: 8.54   Max: 47.44
Current: 31.11

8.54
47.44
ROA (%) 23.12
SYNT's ROA (%) is ranked higher than
97% of the 2078 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.78 vs. SYNT: 23.12 )
SYNT' s 10-Year ROA (%) Range
Min: 6.25   Max: 33.5
Current: 23.12

6.25
33.5
ROC (Joel Greenblatt) (%) 140.44
SYNT's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 2065 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.04 vs. SYNT: 140.44 )
SYNT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 43.1   Max: 569.11
Current: 140.44

43.1
569.11
Revenue Growth (%) 15.50
SYNT's Revenue Growth (%) is ranked higher than
86% of the 1667 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.60 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
90% of the 1357 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.30 vs. SYNT: 27.70 )
SYNT' s 10-Year EBITDA Growth (%) Range
Min: -23.5   Max: 103.3
Current: 27.7

-23.5
103.3
EPS Growth (%) 24.30
SYNT's EPS Growth (%) is ranked higher than
86% of the 1265 Companies
in the Global Information Technology Services industry.

( Industry Median: 9.10 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

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
Q1 2014

SYNT Guru Trades in Q1 2014

Jeremy Grantham 2,900 sh (New)
Murray Stahl 8,716 sh (+50.61%)
Paul Tudor Jones 7,900 sh (+41.07%)
Joel Greenblatt 144,579 sh (+22.45%)
Jim Simons 321,495 sh (+13.32%)
Columbia Wanger 394,000 sh (unchged)
Third Avenue Management 318,315 sh (unchged)
Chuck Royce 211,400 sh (-1.35%)
Steven Cohen 2,235 sh (-46.26%)
» More
Q2 2014

SYNT Guru Trades in Q2 2014

Third Avenue Management 455,170 sh (+42.99%)
Jim Simons 363,095 sh (+12.94%)
Murray Stahl 9,379 sh (+7.61%)
Columbia Wanger 394,000 sh (unchged)
Joel Greenblatt Sold Out
Jeremy Grantham Sold Out
Paul Tudor Jones 6,600 sh (-16.46%)
Chuck Royce 148,100 sh (-29.94%)
» More
Q3 2014

SYNT Guru Trades in Q3 2014

Jeremy Grantham 11,000 sh (New)
Murray Stahl 9,516 sh (+1.46%)
Third Avenue Management 455,170 sh (unchged)
Columbia Wanger 394,000 sh (unchged)
Chuck Royce 144,200 sh (-2.63%)
Jim Simons 324,395 sh (-10.66%)
Paul Tudor Jones 4,300 sh (-34.85%)
» More
» Details

Insider Trades

Latest Guru Trades with SYNT

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Third Avenue Management 2014-06-30 Add 42.99%0.23%$39 - $45.48 $ 44.398%910340
Joel Greenblatt 2014-06-30 Sold Out 0.2%$39 - $45.48 $ 44.398%0
Joel Greenblatt 2014-03-31 Add 22.45%0.04%$40.42 - $48.39 $ 44.39-1%289158
Joel Greenblatt 2013-12-31 Add 53.53%0.09%$39.48 - $45.85 $ 44.392%236144
John Hussman 2013-09-30 Sold Out 0.13%$31.87 - $40 $ 44.3922%0
Joel Greenblatt 2013-09-30 Reduce -33.71%0.1%$31.87 - $40 $ 44.3922%153810
Third Avenue Management 2013-06-30 New Buy0.38%$30.89 - $34.17 $ 44.3936%623380
Joel Greenblatt 2013-06-30 Add 59.03%0.12%$30.89 - $34.17 $ 44.3936%232016
John Hussman 2013-03-31 Reduce -41.18%0.05%$25.99 - $33.76 $ 44.3949%100000
Joel Greenblatt 2012-09-30 Add 181.9%0.17%$28.47 - $31.6 $ 44.3949%122498
John Hussman 2012-06-30 Reduce -42.31%0.07%$26.74 - $30.5 $ 44.3956%180000
John Hussman 2012-03-31 Reduce -53.29%0.13%$22.72 - $27.86 $ 44.3988%312000
Joel Greenblatt 2012-03-31 New Buy0.1%$22.72 - $27.86 $ 44.3988%40450
John Hussman 2011-09-30 Add 21.01%0.04%$19.5 - $30.59 $ 44.3980%668000
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

Ratios

vs
industry
vs
history
P/E(ttm) 15.20
SYNT's P/E(ttm) is ranked higher than
90% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 54.30 vs. SYNT: 15.20 )
SYNT' s 10-Year P/E(ttm) Range
Min: 8   Max: 32
Current: 15.2

8
32
P/B 4.13
SYNT's P/B is ranked higher than
65% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.33 vs. SYNT: 4.13 )
SYNT' s 10-Year P/B Range
Min: 3.09   Max: 10.7
Current: 4.13

3.09
10.7
P/S 4.14
SYNT's P/S is ranked higher than
60% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.68 vs. SYNT: 4.14 )
SYNT' s 10-Year P/S Range
Min: 1.48   Max: 5.66
Current: 4.14

1.48
5.66
PFCF 14.41
SYNT's PFCF is ranked higher than
91% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 14.41 )
SYNT' s 10-Year PFCF Range
Min: 8.88   Max: 191.67
Current: 14.41

8.88
191.67
EV-to-EBIT 11.28
SYNT's EV-to-EBIT is ranked higher than
86% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 34.57 vs. SYNT: 11.28 )
SYNT' s 10-Year EV-to-EBIT Range
Min: 4.9   Max: 23.2
Current: 11.28

4.9
23.2
PEG 0.73
SYNT's PEG is ranked higher than
96% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 0.73 )
SYNT' s 10-Year PEG Range
Min: 0.38   Max: 4.51
Current: 0.73

0.38
4.51
Shiller P/E 21.99
SYNT's Shiller P/E is ranked higher than
91% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 21.99 )
SYNT' s 10-Year Shiller P/E Range
Min: 12.94   Max: 48.28
Current: 21.99

12.94
48.28
Current Ratio 7.63
SYNT's Current Ratio is ranked higher than
96% of the 2037 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.91 vs. SYNT: 7.63 )
SYNT' s 10-Year Current Ratio Range
Min: 1.38   Max: 7.82
Current: 7.63

1.38
7.82
Quick Ratio 7.63
SYNT's Quick Ratio is ranked higher than
96% of the 2037 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.78 vs. SYNT: 7.63 )
SYNT' s 10-Year Quick Ratio Range
Min: 1.38   Max: 7.82
Current: 7.63

1.38
7.82

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.20
SYNT's Dividend Yield is ranked lower than
93% of the 1035 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.62 vs. SYNT: 0.20 )
SYNT' s 10-Year Dividend Yield Range
Min: 0.38   Max: 1.73
Current: 0.2

0.38
1.73
Dividend growth (3y) -100.00
SYNT's Dividend growth (3y) is ranked higher than
55% of the 621 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.60 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) 0.20
SYNT's Yield on cost (5-Year) is ranked lower than
91% of the 1065 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.74 vs. SYNT: 0.20 )
SYNT' s 10-Year Yield on cost (5-Year) Range
Min: 0.38   Max: 1.73
Current: 0.2

0.38
1.73
Share Buyback Rate -0.20
SYNT's Share Buyback Rate is ranked higher than
80% of the 1434 Companies
in the Global Information Technology Services industry.

( Industry Median: -1.30 vs. SYNT: -0.20 )
SYNT' s 10-Year Share Buyback Rate Range
Min: 0.1   Max: -15.3
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Net Cash 7.09
SYNT's Price/Net Cash is ranked higher than
93% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 7.09 )
SYNT' s 10-Year Price/Net Cash Range
Min: 4.67   Max: 173.61
Current: 7.09

4.67
173.61
Price/Net Current Asset Value 6.08
SYNT's Price/Net Current Asset Value is ranked higher than
91% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 6.08 )
SYNT' s 10-Year Price/Net Current Asset Value Range
Min: 3.64   Max: 44.09
Current: 6.08

3.64
44.09
Price/Tangible Book 4.13
SYNT's Price/Tangible Book is ranked higher than
77% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.60 vs. SYNT: 4.13 )
SYNT' s 10-Year Price/Tangible Book Range
Min: 2.3   Max: 22.98
Current: 4.13

2.3
22.98
Price/DCF (Projected) 1.19
SYNT's Price/DCF (Projected) is ranked higher than
89% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 14.83 vs. SYNT: 1.19 )
SYNT' s 10-Year Price/DCF (Projected) Range
Min: 0.97   Max: 2.32
Current: 1.19

0.97
2.32
Price/Median PS Value 1.37
SYNT's Price/Median PS Value is ranked higher than
65% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.22 vs. SYNT: 1.37 )
SYNT' s 10-Year Price/Median PS Value Range
Min: 0.37   Max: 1.95
Current: 1.37

0.37
1.95
Price/Peter Lynch Fair Value 0.81
SYNT's Price/Peter Lynch Fair Value is ranked higher than
97% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 0.81 )
SYNT' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.44   Max: 4.04
Current: 0.81

0.44
4.04
Price/Graham Number 1.68
SYNT's Price/Graham Number is ranked higher than
86% of the 2264 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. SYNT: 1.68 )
SYNT' s 10-Year Price/Graham Number Range
Min: 1.08   Max: 8.76
Current: 1.68

1.08
8.76
Earnings Yield (Greenblatt) 8.90
SYNT's Earnings Yield (Greenblatt) is ranked higher than
85% of the 2026 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.70 vs. SYNT: 8.90 )
SYNT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.3   Max: 20.3
Current: 8.9

4.3
20.3
Forward Rate of Return (Yacktman) 22.30
SYNT's Forward Rate of Return (Yacktman) is ranked higher than
91% of the 1509 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.09 vs. SYNT: 22.30 )
SYNT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 9.5   Max: 39.5
Current: 22.3

9.5
39.5

Business Description

Industry: Application Software » Information Technology Services
Compare:ACN, INFY, CTSH, IT, CIOXY » details
Traded in other countries:SYE.Germany
Syntel, Inc., incorporated under Michigan law on April 15, 1980. The company is a provider Information Technology and Knowledge Process Outsourcing "KPO" services. The Company also provides a range of services to its customers through its Applications Outsourcing; Knowledge Process Outsourcing; e-Business; and TeamSourcing service offerings. Its Applications Outsourcing service covers the lifecycle of software applications, including development, maintenance, testing, migration, infrastructure services and cloud computing. 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. Its Knowledge Process Outsourcing service includes provision of 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 assess business processes and identify processes suitable for outsourcing. Its e-Business services include advanced technology services in the areas of architecting, implementing and maintaining, Web Solutions, Data Warehousing, Business Intelligence, Enterprise Application Integration, Business Process Management and Enterprise Resource Planning solutions. It also includes emerging technologies like mobility, Enterprise Data Management and Big Data Analytics. Its TeamSourcing service covers professional information technology consulting services provided by individual professionals and teams of professionals dedicated to assisting customer information technology departments with systems projects and ongoing functions. The Company markets and sells services directly through a professional sales team operating from the Company's offices in Santa Clara, California; Phoenix, Arizona; Schaumburg, Illinois; Miami, Florida; Minneapolis, Minnesota; New York, New York; Troy, Michigan; Sparks, Maryland; Cary, North Carolina; Nashville, Tennessee; Memphis, Tennessee; Natick, Massachusetts; London, UK; Toronto, Canada; Stuttgart and Munich, Germany; Dublin, Ireland; and Sydney, Australia. It competes with a variety of other companies, depending on the client and scope of services. Its direct competitors in IT include Cognizant, Infosys Technologies, Tata Consultancy Services and Wipro Technologies, companies that utilize an integrated on-site/offshore business model comparable to that used by the Company. The Company's operations and the properties it owns and develops "primarily located in India" are subject to environmental laws and regulations, including requirements addressing; health and safety; the use, management and disposal of hazardous substances and wastes; discharges of waste materials into the environment, such as refuse or sewage; and air emissions.
» More Articles for SYNT

Headlines

Articles On GuruFocus.com
3 Winning Small Stocks to Take You Through 2014 Dec 30 2013 
Numerous Billionaires Hold Four Undervalued Stocks Sep 09 2013 
IT Companies in an Environment of Increasing IT Spending Aug 30 2013 
Third Avenue Management Comments on Syntel Jul 02 2013 
5 Fast-Growing Small-Cap Stocks to Watch Mar 26 2013 
The 100 Best Small Capitalized Dividend Growth Stocks to Invest in Nov 22 2012 
Syntel Inc. Reports Operating Results (10-K) Mar 03 2011 
Syntel Inc. (SYNT) CEO and President Prashant Ranade sells 3,000 Shares Dec 20 2010 
Syntel Inc. (SYNT) CEO and President Prashant Ranade sells 3,000 Shares Dec 17 2010 
Syntel Inc. (SYNT) Chairman, 10% Owner Bharat Desai sells 105,384 Shares Dec 16 2010 

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Syntel Reports Third Quarter 2014 Financial Results Oct 16 2014
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Syntel Reports Third Quarter 2014 Financial Results Oct 16 2014
SYNTEL INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements... Oct 16 2014
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[$$] Syntel Is a Strong Entry in Outsourcing Oct 16 2014
Why Syntel (SYNT) Might Surprise This Earnings Season Oct 15 2014
Coverage initiated on Syntel by Maxim Group Oct 15 2014
Syntel to Announce Third Quarter 2014 Results on Thursday, October 16, 2014 Oct 10 2014
Syntel Announces a Two-for-One Stock Split Oct 08 2014
SYNTEL INC Files SEC form 8-K, Other Events, Financial Statements and Exhibits Oct 08 2014
[video] Syntel is Getting IT Done Within the Technology Landscape Sep 16 2014
Syntel (NASDAQ: SYNT) to Ring The NASDAQ Stock Market Closing Bell Sep 15 2014

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