Corporate Webpages Sykes Enterprises, Inc.
Sykes Enterprises has had a meteoric rise in the last few days.
Our first job is to try to find out why. Apparently, the reason
is Sykes decision to merge with ICT Group, Inc. for $263 million
in cash and stock. This will Sykes entry into health care and
government, two high-growth vertical markets, and expand the
company's geographic reach into Mexico, India, and Australia.
There has been a wave of consolidation in information technology
services, where competition is heavy and there is a long list of
companies. ICT was one of Syke's major competitors and the
merger will give a combined revenue surpassing $1 billion annually.
The merger is estimated to improve Sykes' third quarter earnings
by 31 to 34 cents per share. Sykes had the cash to buy ICT, but
is holding onto its cash and offering about half the purchase
price to ICT directors in stock instead. Sykes stock had been
relatively stable throughout recent financial crises and is
regarded as "good currency."
Sykes began as an engineering consulting company with three
engineers in Charlotte, NC. In the early 1990's it targeted
companies having difficulty maintaining brand loyalty through
adequate customer support by establishing a way to outsource
customer support for them. It moved its headquarters to Tampa,
and began establishing various call centers around the U.S.
By 1996 the company had ten call centers and 3,000 employees,
and went public. In 2000, the company participated in the tech
wreck and management became more difficult. Sykes laid off
hundreds of workers in 42 call centers, and itself outsourced
some U.S. jobs to overseas.
Revenue comes mainly from internet, chat, phone, and e-mail
technical help services. Sykes serves financial, consumer,
communications, and technology industries, including product returns.
Zenith very much disapproves of outsourcing by American corporations.
Nevertheless, our job is to try to help you make money by unbiased evaluations.
The tendency of American corporations to outsource everything, even
their customer support, was not lost on Sykes and it has one of the
highest Zenith Decision Matrix ratings we've seen of late.
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Company Profile |
Company History |
News |
Comparison |





Similar Companies Performance:
Bond Issue |
Zenith Index |
Sykes Enterprises, Incorporated (SYKE ) Sector: Services
400 North Ashley Drive Industry: Business Services
Tampa, FL 33602 Exchange: Nasdaq
Sykes Enterprises, Incorporated, together with its subsidiaries,
provides outsourced customer contact management solutions and
services in the business process outsourcing arena. The company
offers various services, including customer assistance, healthcare
and roadside assistance, technical support, and product sales
through phone, email, Web, and chat. It also provides various
enterprise support services, which include technical staffing and
outsourced corporate help desk services. In addition, the company
offers fulfillment services comprising multilingual sales order
processing through the Internet and phone, inventory control,
product delivery, and product returns handling. It serves companies,
medium sized businesses, and public institutions in the
communications, technology/consumer, financial services, healthcare,
and transportation and leisure industries. The company operates
operations in the United States, Canada, Latin America, the Asia
Pacific, Europe, the Middle East, and Africa. Sykes Enterprises,
Incorporated was founded in 1977 and is headquartered in Tampa,
Florida.
Last Trade: 24.46 52-Week Range: 24.82 - 12.34
Trade Date: 10-07 Avg. Volume: 208,158 Shares
Index Membership: S&P 600 SmallCap Employees: 32,940
Corporate Governance:
Sykes Enterprises, Incorporated's Corporate Governance Quotient
(CGQ-«) as of 1-Oct-09 is better than 20.2% of S&P 600 companies and
48.9% of Commercial & Professional Services companies.
EPS: 1.37 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 1,010,000K
Payout Ratio: 0.00%
Last Split Factor (new for old): 3:2 Split Date: 30-May-97
Key Statistics:
Enterprise Value: $ 697,610K Revenue (ttm) : $ 819,920K
Gross Profit: $ 295,060K
Earnings before Income Tax, Depreciation and Amortization: $ 96,990K
Enterprise Value/Revenue (ttm): 0.85 Revenue per Share: $ 20.17
Enterprise Value/EBITDA (ttm): 7.19 Qtrly Rev Growth (y to y): 0.60%
P/E Ratio (fwd projected): 16.42 P/E Ratio (current): 17.84
P/E Growth Ratio (5 yr expected): 1.16 Operating Margin: 8.45%
Price/Sales Ratio: 1.14 Profit Margin: 6.86%
Price/Book Value: 2.20 Book Value: $ 10.30/sh.
Return on Assets: 7.93% Net Income Avl to Common: $ 56,240K
Return on Equity: 13.96% Diluted Earnings/Share: $ 1.37
Qrtly Earnings Growth (yoy): -19.10%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 240,810K Operating Cash Flow:$ 83,390K
Total Debt: $ 0K Lvgd Free Cash Flow:$ 31,380K
Total Debt/Equity: 0.00
Total Cash/Share: $ 5.83
Current Ratio: 3.71
Share Statistics: Stock Price History:
Shares Outstanding: 41,320K Stk 52-Week Change: 25.96%
Float: 35,340K S&P 500 52-Wk Chng: 5.87%
Sh. Short % of Float: 4.40% 50-Day Moving Avg: 21.03
Short Ratio: 8.90 200-Day Moving Avg: 18.84
% Held by Institutions: 90.70% Beta: 0.70
% Held by Insiders: 15.52%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep-09 Dec-09 Dec-09 Dec-10
Average Earnings Estimate 0.33 0.34 1.38 1.49
Average Revenue Estimate 212M 213M 837M 895M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): -.017
PEG Ratio (ttm, 5 yr expected): 0.196 P/E Ratio (ttm): 0.062
Revenue Growth (Qrtly YoY): 0.004
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 819,190 710,120 574,223
Cost of Revenue 524,133 451,280 365,602
Gross Profit 295,057 258,840 208,621
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 229,027 206,009 176,701
Non-Recurring Expenses 322 339 -13,238
Other Operating Expenses 0 1,312 0
Total Operating Expenses 0 0 0
Operating Income or Loss 65,708 51,180 45,158
Income from Continuing Operations:
Total Other Income/Expenses Net 16,707 3,674 6,975
Earnings Before Interest & Taxes 82,415 54,854 52,133
Interest Expense 433 803 674
Income Before Taxes 81,982 54,051 51,459
Income Tax Expense 21,421 14,192 9,136
Minority Interest 0 0 0
Net Income from Continuing Op.s 60,561 39,859 42,323
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 60,561 39,859 42,323
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 60,561 39,859 42,323
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Total Revenue 208,839 203,241 200,774 207,066
Cost of Revenue 133,727 130,253 128,936 130,509
Gross Profit 75,112 72,988 71,838 76,557
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 56,476 55,489 57,944 57,304
Non-Recurring Expenses 1,584 0 322 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 17,052 17,499 13,572 19,253
Income from Continuing Operations:
Total Other Income/Expenses Net -1,210 1,672 5,352 4,011
Earnings Before Int. & Taxes 15,842 19,171 18,924 23,264
Interest Expense 237 114 159 47
Income Before Taxes 15,605 19,057 18,765 23,217
Income Tax Expense 1,257 4,287 11,135 3,725
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 14,348 14,770 7,630 19,492
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 14,348 14,770 7,630 19,492
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 14,348 14,770 7,630 19,492
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 220,184 180,814 159,896
Short Term Investments 1,386 19,232 0
Net Receivables 165,266 151,270 120,401
Inventory 0 3,486 1,738
Other Current Assets 9,682 16,930 6,736
Total Current Assets 396,518 371,732 288,771
Long-Term Investments 7,013 8,483 7,839
Property, Plant & Equipt 80,390 78,574 66,205
Goodwill 23,191 22,468 20,422
Intangible Assets 4,586 6,646 8,004
Accumulated Amortization 0 0 0
Other Assets 3,165 2,815 7,422
Deferred Long Term Asset Charges 14,679 14,757 16,910
Total Assets 529,542 505,475 415,573
Current Liabilities:
Accounts Payable 84,134 81,783 69,809
Short/Current Long Term Debt 11,654 0 0
Other Current Liabilities 30,322 36,596 35,066 Total Current Liabilities 126,110 118,379 104,875
Long Term Debt 0 0 0
Other Liabilities 10,062 11,446 8,414
Deferred LT Liability Charges 9,340 10,329 10,811
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 145,512 140,154 124,100
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 413 455 453
Retained Earnings 237,188 195,203 158,058
Treasury Stock -1,104 -51,978 -51,928
Capital Surplus 158,216 184,184 179,021
Other Stockholder Equity -10,683 37,457 5,869
Total Stockholder Equity 384,030 365,321 291,473
Net Tangible Assets 356,253 336,207 263,047
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Current Assets:
Cash & Cash Equivalents 238,904 208,976 220,184 220,051
Short Term Investments 0 0 1,386 0
Net Receivables 165,744 158,022 165,266 157,641
Inventory 0 0 0 0
Other Current Assets 21,320 23,925 9,682 24,913
Total Current Assets 425,968 390,923 396,518 402,605
Long-Term Investments 0 0 7,013 0
Property, Plant & Equipt 81,223 79,558 80,390 78,909
Goodwill 21,142 21,884 23,191 25,326
Intangible Assets 2,564 4,033 4,586 5,481
Accumulated Amortization 0 0 0 0
Other Assets 0 0 3,165 0
Deferred LT Asset Charges 29,936 25,552 30,322 32,219
Total Assets 554,767 520,949 529,542 545,131
Current Liabilities:
Accounts Payable 84,979 88,436 84,134 101,865
Current Portion LT Debt 0 0 11,654 0
Other Current Liabilities 0 0 0 0
Total Current Liabilities 114,915 113,988 126,110 134,084
Long Term Debt 0 0 0 0
Other Liabilities 9,614 9,940 10,062 13,068
Deferred LT Liab. Charges 11,804 12,099 9,340 9,493
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 136,333 136,027 145,512 156,645
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 415 415 413 413
Retained Earnings 266,306 251,958 237,188 229,558
Treasury Stock -4,442 -4,413 -1,104 -624
Capital Surplus 160,273 158,961 158,216 157,022
Other Stockholder Equity -4,118 -21,999 -10,683 2,117
Total Stockholder Equity 418,434 384,922 384,030 388,486
Net Tangible Assets 394,728 359,005 356,253 357,679
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 60,561 14,770 42,323
Operating Activites:
Depreciation 27,726 24,986 24,747
Adjustments to Net Income 8,832 4,414 -10,612
Changes in Accounts Recv'bls -23,705 -23,912 -20,816
Changes in Liabilities 9,940 1,906 9,581
Changes in Inventories 0 0 0
Changes in Other Op'ing Actv's 0 996 -451
Total Cash Flow fr Operations 80,857 48,249 44,772
Investing Activities:
Capital Expenditures -34,677 -31,472 -19,420
Investments 17,535 -17,535 0
Other Cash Flows fr Investing 0 -370 -6,714
Total Cash Flows fr Investing -19,651 -49,377 -26,134
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 662 474 4,342
Net Borrowings 0 248 -381
Other Cash Flows fr Financing 835 0 2,886
Total Cash Flows fr Financing 1,497 722 6,847
Effect of Exchange Rate Change -21,335 19,508 5,483
Change in Cash & Cash Equiv.s 41,368 19,102 30,968
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Net Income 14,348 14,770 7,630 19,492
Operating Activites:
Depreciation 7,113 6,776 6,823 6,915
Adjustments to Net Income 3,552 3,068 16,342 -10,832
Changes in Accounts Recv'bls -2,805 -6,202 -6,026 -934
Changes in Liabilities 4,418 -4,567 -690 11,316
Changes in Inventories 0 0 0 0
Changes in Other Oper'g Acts -1,183 -5,799 348 -480
Total Cash Flow f Operations 25,443 8,046 24,427 25,477
Investing Activities:
Capital Expenditures -7,251 -11,057 -8,947 -9,482
Investments 0 0 997 0
Other Cash Flows fr Investing 993 6 0 0
Total Cash Flows fr Investing -6,258 -11,051 -8,951 -11,789
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock -3,369 247 -512 86
Net Borrowings 3,440 0 0 0
Other Cash Flows fr Financing -1,036 79 147 97
Total Cash Flows fr Financing -965 326 -365 183
Effect of Exchange Rate Chg 16,112 -2,225 0 0
Change in Cash & Cash Equiv. 29,928 0 -10,074 0
SYKE Sykes Enterprises, Incorporated [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.5695 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 1.4800 Forward P/E Ratio < 28? 1.7052
Sales Tests:
Price/Sales Ratio < 2.3? 2.0175 Inventory/Sales < 5%? 1.0000
Sales < $1 billion? 1.2207 Operating Margin < 7.5%? 0.8876
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 1.8535 Working Capital >= 1.5? 0.5395
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000
Shares Out Decreasing? 1.8000 Market Cap.> 1.5 Billion? 1.4851
Profit Margin > 7.5%? 0.9146
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 0.5667 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 1.0276 EPS Growth Consistent? 1.2000
EPS Qrtly Growth > 10%? -1.9100 Collection < 45 days? 0.6111
Rev. Qtrly Growth > 15%? 0.0900 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 2.6868 % Held by Insiders < 5%? 0.3222
Beta > 1.25? 0.5600 % Held by Institut. < 50? 0.5513
50 Da MA > 200 Da MA? 0.2686 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.3914 Short Ratio > 5? 1.7800
Price/Book Value < 3? 1.8000 Short % of Float > 20? 0.2200
Return on Assets > 17%? 0.4665 Average Volume > 100,000? 2.0816
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 2.6574 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 2.2990
Cash Flow / Assets >.10? 0.5656
SYKE Sykes Enterprises, Incorporat Overall Zenith Index: 1.2506
Financial Statements |
Financial Ratios |

Market Grader |

Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:

Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:

Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.

Projected Earnings |


Research Reports |
Analysts' Opinions |




Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.

Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Sykes Enterprises:
Symbol? SYKE
Total Months Available: 90
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
21.50 12.34 20.45 13.16 22.81 16.40
RANGE = 22.81 TO 12.34 Close = 24.22
CHANNEL = 20.45 TO 16.40 Degree = 4
Volatility = 16.72% Index = 6
Intraday Chart |
20 Days:
1 Day:
The following table details which MACD signals on the preceding chart are best taken. Originally, this was set up for a two-day span, but ten days gives a better sample. Unfortunately, with the 10-day span, the colored lines on the histogram are much harder to read. Both spans are shown above. Red turning into green on the histogram is a buy and green turning into red is a sell, but with the following conditions. The share price must have moved at least 0.2% away from the previous signal price in order to avoid whipsawing. More importantly, the +/- magnitude of the MACD (the blue line, which crosses the red line at signal time) must be greater than the minimum required magnitude indicated below. Otherwise, the signal is ignored. SYKE Minimum Magnitude MACD for Action = ± 0.0200 Ticker Day Time Hist. MACD Sig Line Act Price Profit SYKE 02 06:39 0.0013 -0.0287 -0.0300 B 20.22 0.00 SYKE 05 06:30 0.0097 0.0034 -0.0063 20.25 7.74 SYKE 05 06:57 -0.0008 0.0438 0.0447 S 20.31 7.74 SYKE 05 07:23 0.0023 -0.0259 -0.0282 B 20.21 8.24 SYKE 06 06:29 0.0021 0.0106 0.0086 20.20 8.78 SYKE 06 06:53 -0.0030 0.1811 0.1842 S 20.93 8.78 SYKE 06 07:39 0.0013 0.0311 0.0298 B 21.05 8.19 SYKE 06 09:04 -0.0015 0.0533 0.0548 S 21.28 9.31 SYKE 06 11:32 0.0047 0.0918 0.0872 B 21.95 6.18 SYKE 06 11:46 -0.0028 0.1434 0.1462 S 22.24 7.50 SYKE 06 12:33 0.0005 0.0577 0.0572 B 22.46 6.52 SYKE 06 12:45 -0.0033 0.0679 0.0712 S 22.55 6.92 SYKE 06 12:54 0.0085 0.0676 0.0592 B 22.78 5.90 SYKE 06 12:59 -0.0016 0.0653 0.0669 S 22.69 5.50 SYKE 07 06:30 0.0129 0.0228 0.0099 22.55 4.49 SYKE 07 07:44 0.0010 0.0361 0.0351 B 24.20 4.49 SYKE 07 08:09 -0.0064 0.1363 0.1427 S 24.70 6.58 SYKE 07 09:50 0.0020 -0.0277 -0.0297 B 24.64 6.84 SYKE 07 10:01 -0.0009 -0.0243 -0.0234 S 24.54 6.44 SYKE 07 13:12 0.0017 -0.0410 -0.0427 B 24.32 7.33 SYKE 07 13:16 -0.0020 -0.0451 -0.0432 S 24.22 6.92 SYKE 08 06:30 0.0115 -0.0287 -0.0403 24.46 7.50 SYKE 08 06:59 0.0049 -0.0417 -0.0466 B 24.25 7.50 SYKE 08 07:05 -0.0019 -0.0441 -0.0422 S 24.11 6.92 SYKE 08 07:43 0.0010 -0.0268 -0.0278 B 24.06 7.13 SYKE 08 13:01 0.0044 0.0071 0.0027 24.05 7.07
Stock Fetcher |
Point & Figure Chart |

Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
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Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | 0 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 19 |
Place 1,240 shares of Sykes Enterprises Inc. (SYKE) on the Active List.