Tech Data: Great Business At A Bargain Basement Valuation

Top Idea
|
|
About: Tech Data Corporation (TECD), Includes: ARW, AVT, SNX
by: Thomas Lott
This article is exclusive for subscribers.
Thomas Lott
Long/short equity, Deep Value, special situations, hedge fund manager
Summary

Tech Data has a tremendous long-term track record of earnings growth, compounding at almost 17% per year over the past decade.

The IT space continues to grow, and Tech Data's recent TS acquisition positions them nicely to capture data center growth too.

After offering poor Q1 guidance this year, TECD got crushed, falling 20% in one day.  Despite a somewhat weak quarter, EPS is still expected to grow 14% this year.

Valuation is remarkably compelling at just over 8x earnings and 7x FCF.

Tech Data (TECD) has traded poorly over the past year as concerns over heightened industry competition and missed earnings expectations have taken their toll. From a high of $111, TECD stock now languishes