Core Viewpoint - Investors are evaluating the attractiveness of ScanSource (SCSC) and Symbotic Inc. (SYM) for value investment opportunities, with SCSC currently appearing more favorable based on various financial metrics [1][3]. Valuation Metrics - SCSC has a forward P/E ratio of 9.66, significantly lower than SYM's forward P/E of 148.62, indicating that SCSC may be undervalued compared to SYM [5]. - The PEG ratio for SCSC is 0.64, while SYM's PEG ratio is 4.95, suggesting that SCSC has a better balance between its price and expected earnings growth [5]. - SCSC's P/B ratio stands at 0.96, contrasting sharply with SYM's P/B ratio of 73.15, further indicating SCSC's relative undervaluation [6]. Value Grades - SCSC has received a Value grade of A, reflecting its strong valuation metrics, while SYM has been assigned a Value grade of F, highlighting its poor valuation performance [6]. - The stronger estimate revision activity for SCSC compared to SYM suggests a more favorable earnings outlook for SCSC, making it a more attractive option for value investors [7].

Core Viewpoint - The current market environment favors large-cap stocks, but the VictoryShares Small Cap Free Cash Flow ETF (SFLO) highlights the potential of small-cap investments, particularly in companies like Symbotic Inc. [1] Company Overview - Symbotic Inc. is a leader in AI-enabled robotics technology for the consumer goods supply chain and is positioned for significant growth [2]. - As of December 11, 2025, Symbotic is included in SFLO, which tracks a focused index that emphasizes companies with strong free cash flow [1][2]. Financial Metrics - SFLO aims to track the Victory U.S. Small Cap Free Cash Flow Index, which screens for companies with robust free cash flow (FCF) [3]. - FCF is defined as the remaining funds after operating cash flow minus capital expenditures, serving as a key indicator of financial health [4]. - Symbotic has a high expected FCF yield of 13.64%, significantly outperforming the Russell 2000 Value Index's yield of 3.56% [5]. - The growth rate for Symbotic is 37.32%, compared to 5.62% for the Russell 2000 Value Index, indicating strong growth potential [5]. Investment Strategy - SFLO's index methodology focuses on forward-looking FCF rather than trailing cash flows, allowing it to target companies with high FCF yield and growth potential [5]. - Companies like Symbotic, which focus on innovation and disruptive technology, are essential for identifying investment opportunities in the small-cap sector [6]. Index Characteristics - The Victory U.S. Small Cap Free Cash Flow Index selects high-quality companies based on profitability and strong free cash flow yield, rebalancing quarterly [14]. - Expected FCF is calculated as the average of trailing 12-month FCF and next 12-month forward FCF, divided by enterprise value [14].

Company Overview - Symbotic is an automation technology company that provides AI-powered, end-to-end robotic warehouse solutions, initially focused on optimizing supply chain logistics for retailers and wholesalers [4] - The company generates ongoing revenue through software maintenance, support fees, and operational assistance for deployed hardware [1] Revenue Drivers - The primary revenue driver for Symbotic is the sale of modular, end-to-end automation systems, often integrated into large distribution centers for major clients like Walmart, Target, and Albertsons [2] - Symbotic's contracted backlog is approximately $22.5 billion, representing about 10 times its annual sales, providing exceptional revenue visibility for years to come [9] Market Expansion - Symbotic is expanding into a service-based model through its GreenBox warehouse-as-a-service joint venture with SoftBank, offering automated warehousing to smaller companies [1] - The company has recently entered the healthcare vertical through a client relationship with Medline, potentially opening new market opportunities [2] Financial Performance - Symbotic reported full-year 2025 revenue growth of 26%, reaching nearly $2.3 billion [9] - The company experienced a significant turnaround in free cash flow, reporting about $788 million in the recent fiscal year compared to a negative free cash flow of $102.45 million in the prior year [10] Manufacturing Strategy - Symbotic outsources the manufacturing of its robot components to established automotive suppliers, allowing rapid scaling without the capital intensity of owning large-scale factories [3]

Core Insights - Symbotic (SYM) is positioned for significant revenue growth due to a substantial backlog of $22.5 billion as of Q4 FY25, which supports its expanding product portfolio across the supply chain [1][10] Group 1: Revenue Growth and Projections - The strong backlog has contributed to year-over-year revenue growth in Q4 FY25, with projected revenues for Q1 FY26 expected to be between $610 million and $630 million, reflecting a growth rate of 25-29% [2][10] - The conversion of the backlog is anticipated to drive continued revenue growth in the future [2] Group 2: Operational Efficiency and Innovation - A large backlog enhances operational efficiency by allowing the company to optimize manufacturing processes and supply chain management, leading to quicker solution delivery [4] - The backlog supports consistent cash generation and enables ongoing innovation and a well-defined product development roadmap [3][4] Group 3: Competitive Advantage - The substantial backlog strengthens Symbotic's ability to form deeper partnerships and negotiate favorable terms with suppliers, providing a competitive edge in the warehouse automation market [5] - The backlog is expected to support both revenue expansion and margin improvement through improved deployment efficiency [4] Group 4: Market Position and Valuation - Symbotic's shares have surged significantly, outperforming its industry, and the company is currently trading at a premium valuation with a price-to-sales ratio of 11.83X compared to the industry average of 2.71X [8][12] - The Zacks Consensus Estimate for SYM's earnings has remained stable for Q1 and Q2 FY26, with upward revisions for fiscal years 2026 and 2027 [14]

Group 1 - The article provides a market analysis covering key players in the automation and technology sectors, specifically Rockwell Automation Inc, Teradyne Inc, Zebra Technologies Corporation, and Symbotic Inc [1] - It highlights the growth trends and market dynamics affecting these companies, indicating a positive outlook for automation technologies driven by increased demand for efficiency and productivity [1] - The analysis includes financial performance metrics and projections for these companies, showcasing their revenue growth and market share within the industry [1] Group 2 - Rockwell Automation Inc is noted for its strong position in the industrial automation market, with significant investments in innovation and technology development [1] - Teradyne Inc is recognized for its advancements in test automation and robotics, contributing to its competitive edge in the semiconductor and electronics sectors [1] - Zebra Technologies Corporation is highlighted for its focus on enterprise asset intelligence, leveraging data analytics to enhance operational efficiency [1] - Symbotic Inc is discussed in the context of its automated supply chain solutions, which are gaining traction in the logistics and warehousing industries [1]

Core Insights - Symbotic (SYM) reported better-than-expected earnings per share (EPS) of 53 cents for Q4 fiscal 2025, significantly surpassing the Zacks Consensus Estimate of 7 cents and up from 5 cents in the same quarter last year [5] - Revenues reached $618.5 million, exceeding the Zacks Consensus Estimate by 3.1% and showing year-over-year growth, with a backlog of $22.5 billion driven by project pricing and the addition of Medline [6][10] - Despite strong earnings and revenue performance, SYM's shares have declined by 18.9% since the earnings release, underperforming compared to its industry and peers [1] Financial Performance - The company’s Q4 fiscal 2025 EPS was 53 cents, a significant increase from 5 cents in the previous year [5] - Revenues of $618.5 million were bolstered by systems contributing 94.1% of the total, with software revenues increasing by 57% year-over-year to $9.3 million and operations services revenues rising by 21% to $26.9 million [6] - For Q1 fiscal 2026, SYM projects revenues between $610 million and $630 million, indicating a year-over-year growth of 25-29% [7] Backlog and Future Outlook - SYM's backlog of $22.5 billion provides strong visibility into future revenue generation, contributing to the year-over-year revenue growth in Q4 fiscal 2025 [10] - The company is positioned for potential margin expansion due to ongoing system deployments and has solid free cash flow and a favorable current ratio indicating healthy liquidity [10] Risks and Challenges - SYM faces valuation concerns, trading at a forward price-to-sales ratio of 12.77, which is higher than industry levels and peers [16] - The company has a significant reliance on Walmart, its largest customer, which raises customer concentration risks [14][15] - Technical indicators suggest a lack of strong performance momentum, with SYM trading below its 14-day moving average and holding a Momentum Score of F [11]

Company Overview - Symbotic Inc. operates in the industrial machinery sector, focusing on automation technology for supply chain and warehouse operations, delivering integrated robotics and software systems to enhance efficiency for major retail and wholesale customers [5] - The company reported a trailing twelve months (TTM) revenue of $2.24 billion and a net income of -$16.9 million, with a dividend yield of 0.00% [4] - As of November 17, 2025, the stock price increased by 92.9% over the past year [4] Recent Transactions - Freve Maria G, VP and Chief Accounting Officer at Symbotic, sold 1,666 shares on November 17, 2025, for a transaction value of $96,927.88, reducing her direct holdings from 2,210 shares to 544 shares, representing a 75.4% divestment [2][6] - Following the sale, her remaining shares were valued at approximately $30,948, constituting less than 0.001% of the company's outstanding shares [6] Market Performance - Symbotic's stock surged by 150% in 2025, reaching an all-time high of $87.88 per share on November 26, 2025, before experiencing a decline of nearly 32% [8] - The current market capitalization of Symbotic is $7.2 billion, with a gross margin of 18.05% [9] Backlog and Future Prospects - The company's backlog reached $22.5 billion as of September 27, 2025, nearly ten times its fiscal 2025 revenue, indicating strong demand and potential future revenue [9] - Symbotic has recently entered the healthcare market by signing Medline as a customer, which may attract more clients and open opportunities in new sectors such as electronics [10]

Company Performance - Symbotic Inc. (SYM) experienced a decline of 3.44% in its stock price, closing at $61.43, while the S&P 500 fell by 1.07% [1] - Over the past month, SYM shares have appreciated by 6.89%, outperforming the Business Services sector's gain of 2.99% and the S&P 500's gain of 0.94% [1] Upcoming Earnings - The upcoming earnings release is projected to show earnings of $0.09 per share, indicating a year-over-year growth of 400% [2] - The Zacks Consensus Estimate for revenue is $622.31 million, reflecting a 27.86% increase from the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $0.42 per share and revenue of $2.72 billion, representing changes of -76.92% and +21.1% respectively from last year [3] Analyst Estimates - Recent adjustments to analyst estimates for Symbotic Inc. are important as they reflect short-term business trends [4] - Upward revisions in estimates indicate analysts' positive outlook on the company's operations and profit generation capabilities [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Symbotic Inc. at 4 (Sell) [6] - The Forward P/E ratio for SYM is 153.3, significantly higher than the industry average of 19.54, suggesting that SYM is trading at a premium [7] - SYM has a PEG ratio of 5.11, compared to the industry average PEG ratio of 1.82 [7] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]

Core Viewpoint - Investors in the Technology Services sector may find value in either ScanSource (SCSC) or Symbotic Inc. (SYM), with a closer examination needed to determine which stock is more appealing to value investors [1] Valuation Metrics - SCSC has a forward P/E ratio of 10.36, while SYM has a significantly higher forward P/E of 153.30 [5] - The PEG ratio for SCSC is 0.69, indicating a more favorable valuation compared to SYM's PEG ratio of 5.11 [5] - SCSC's P/B ratio stands at 1.03, contrasting sharply with SYM's P/B ratio of 77.8, suggesting SCSC is more aligned with traditional valuation metrics [6] Earnings Outlook - SCSC currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while SYM has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3] - The solid earnings outlook for SCSC, combined with its favorable valuation metrics, positions it as the superior value option compared to SYM [7]

Group 1 - The article provides a market analysis focusing on Flex Ltd and Symbotic Inc, highlighting their performance and potential investment opportunities [1] - Flex Ltd is noted for its strong revenue growth, with a reported increase of 15% year-over-year, reaching $7.5 billion in the last quarter [1] - Symbotic Inc is recognized for its innovative automation solutions in supply chain management, which have led to a significant increase in demand, contributing to a 20% rise in their market share [1] Group 2 - The analysis emphasizes the growing trend of automation in the logistics sector, driven by companies like Symbotic Inc, which is reshaping operational efficiencies [1] - Flex Ltd's diversification strategy is highlighted as a key factor in mitigating risks and enhancing its competitive edge in the market [1] - The report suggests that both companies are well-positioned to capitalize on the increasing demand for advanced manufacturing and supply chain solutions [1]