TSNXTD SYNNEX Corporation

TD SYNNEX resells hardware and software from manufacturers to thousands of integrators — a wholesaler with enormous turnover and a thin margin.

A manufacturer cannot economically deal with every small integrator, and an integrator cannot open an account with every manufacturer. A distributor stands between them: it holds stock, extends payment terms and carries the partners' credit risk. The mark-up is measured in percentage points, so volume decides.

The value lies in logistics and channel financing rather than in the goods: the partner gets equipment tomorrow and pays in a month. The growing part is reselling cloud subscriptions, where no warehouse is needed at all. Risks: the corporate purchasing cycle, working capital frozen in inventory, and manufacturers moving to direct sales. The company pays a dividend and buys back stock.