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TD SynnexMEX:SNX1 85 Operating Margin % is 2.65% as of May. 2026, which is 6% above its 10-year median of 2.49. GuruFocus rates MEX:SNX1 with a GF Score™ of 85/100 and a GF Value™ of MXN1,813.76. The stock has 6 warning signs investors should review. Among 2,479 Hardware companies, TD Synnex ranks worse than 56.84% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. TD Synnex's Operating Income for the
three
months ended in May. 2026 was MXN9,011 Mil. TD Synnex's Revenue for the
three
months ended in May. 2026 was MXN339,619 Mil. Therefore, TD Synnex's Operating Margin % for the quarter that ended in May. 2026 was 2.65%.
Warning Sign:
TD Synnex Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for TD Synnex's Operating Margin % or its related term are showing as below:
MEX:SNX1'
s Operating Margin % Range Over the Past 10 Years
Min: 2.04 Med: 2.49 Max: 3.03
Current: 2.58
MEX:SNX1's Operating Margin % is ranked worse than 56.84% of 2479
companies
in the Hardware industry
Industry Median: 3.8
vs MEX:SNX1: 2.58
TD Synnex's 5-Year Average Operating Margin % Growth Rate was -2.50% per year.
TD Synnex's Operating Income for the
three
months ended in May. 2026 was MXN9,011 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was MXN32,079 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
TD Synnex Operating Margin % Related Terms
TD Synnex Operating Margin % Historical Data
* Premium members only.
The historical data trend for TD Synnex's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:SNX1 vs ARW, AVT, NSIT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, TD Synnex's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TD Synnex Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, TD Synnex's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TD Synnex's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
TD Synnex's Operating Margin % for the fiscal year that ended in Nov. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TD Synnex (MEX:SNX1) has a Operating Margin % of 2.65% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TD Synnex and its competitors. This is near median its historical median of 2.49. Over the past decade, TD Synnex's Operating Margin % has ranged from 2.04 to 3.03. According to the industry distribution chart, TD Synnex ranks #1409 out of 2479 companies in the Hardware industry, placing it in the top 56.8%.
Is TD Synnex's Operating Margin % too high?
TD Synnex's current Operating Margin % of 2.65% is near median its 10-year median of 2.49. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 3.03. The Hardware industry median Operating Margin % is 3.80. TD Synnex's value of 2.65% is 30.3% below this industry median. Based on the distribution chart, TD Synnex ranks #1409 out of 2479 companies in the Hardware industry, which is below the industry midpoint. Overall, TD Synnex has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does TD Synnex's Operating Margin % compare to ARW and AVT?
According to the Hardware industry distribution chart, TD Synnex ranks #1409 out of 2479 companies for Operating Margin %. This places TD Synnex in the lower half of its industry. The industry median Operating Margin % is 3.80. TD Synnex's value of 2.65% is 30.3% below this benchmark. Historically, TD Synnex's own Operating Margin % has ranged from 2.04 to 3.03 over the past decade. While the company's 10-year median is 2.49 vs. the industry median of 3.80, TD Synnex has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,479 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TD Synnex's current Operating Margin % of 2.65% is 30.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on TD Synnex and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TD Synnex's current Operating Margin % is 2.65%, which is near median its own 10-year median of 2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TD Synnex stock overvalued right now?
TD Synnex (MEX:SNX1) has a current Operating Margin % of 2.65%. The stock's GF Value™ is MXN1,813.76, compared to a current price of MXN2,727.15 — trading 50.4% above its estimated fair value. The current Operating Margin % is 2.65%, which is near median its 10-year median of 2.49 and 30.3% below the Hardware industry median of 3.80. TD Synnex's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For TD Synnex (MEX:SNX1), the current Operating Margin % is 2.65% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TD Synnex (MEX:SNX1) Overvalued in 2026?
Based on GuruFocus' analysis, TD Synnex stock appears to be overvalued.
The current stock price of MXN2,727.15 is trading 50.4% above its estimated GF Value™ of MXN1,813.76.
Key valuation signals for MEX:SNX1:
Operating Margin %: 2.65% (near median its 10-year median of 2.49)
GF Value™: MXN1,813.76 vs. price of MXN2,727.15 (50.4% above fair value)
Industry Position: 30.3% below the Hardware median (#1409 of 2479)
No single metric tells the full story. See the MEX:SNX1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem. The company aggregates and distributes IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and data center infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. Its geographical segments include the Americas, Europe, and APJ.
85GF Score
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