Systemax Inc. (NYSE:SYX): Systemax share price grew at a robust pace since the beginning of last year, driven by improvement in its financial numbers and increasing demand for its industrial products in the United States and France.
The massive rally has pushed Systemax share price to the highest level in history this week. Its shares have a 52-week trading range of $17.33 to $40.04 – with the market cap of $1.3 billion. Systemax share price valuations continue trading below the industry average despite the share price rally of 300% since 2017. The company’s year-over-year growth in financial numbers is offering support to its valuations.
Systemax trades around 0.85 times to sales and 14 times to earnings compared to the industry average of 2 times to sales and 20 times to earnings.
Its operating performance metrics are also beating the industry trends by a wide margin. Its return on asset and return on equity ratios are standing at around 15% and 33% respectively, significantly higher from the industry average of 6% and 20%. The company’s return on investment ratio of 34% compared to the industry average of 12% indicates that the management’s strategy of investing in high growth markets is working.
Financial Numbers and Dividends Support Systemax Share Price Uptrend
Systemax generated a revenue growth of 17% in the first quarter from the previous year. The growth in gross and operating margin allowed the company to post a 31% increase in its earnings from its continuing operations.
Its CEO Larry Reinhold says, “Industrial and France are both highly successful, and we remain focused on driving long-term performance through our growth and optimization initiatives.”
Systemax has also been optimizing trader’s sentiments through cash returns for investors. The company currently offers a quarterly dividend of $0.11 per share. It has also recently issued a special dividend of $1 per share for shareholders – which indicates its confidence in future fundamentals.
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