ASX:SOP

Stock Analysis Report

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Executive Summary

Synertec Corporation Limited provides specialist engineering and compliance services in Australia. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Synertec's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

SOP

3.4%

AU Professional Services

0.6%

AU Market


1 Year Return

0%

SOP

-7.9%

AU Professional Services

-12.3%

AU Market

Return vs Industry: SOP exceeded the Australian Professional Services industry which returned -8.5% over the past year.

Return vs Market: SOP exceeded the Australian Market which returned -12% over the past year.


Shareholder returns

SOPIndustryMarket
7 Day-6.0%3.4%0.6%
30 Day-19.0%-3.5%-3.6%
90 Day95.8%13.7%1.0%
1 Year0%0%-5.3%-7.9%-9.0%-12.3%
3 Year34.3%34.3%17.4%5.8%17.1%2.0%
5 Yearn/a43.5%17.0%44.8%14.3%

Price Volatility Vs. Market

How volatile is Synertec's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Synertec undervalued compared to its fair value and its price relative to the market?

2.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SOP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SOP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SOP is unprofitable, so we can't compare its PE Ratio to the AU Professional Services industry average.

PE vs Market: SOP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOP's PB Ratio (2.6x) is in line with the AU Professional Services industry average.


Next Steps

Future Growth

How is Synertec forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.8%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Synertec has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Synertec performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOP is currently unprofitable.

Growing Profit Margin: SOP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOP is unprofitable, and losses have increased over the past 5 years at a rate of 36.6% per year.

Accelerating Growth: Unable to compare SOP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SOP is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (3.1%).


Return on Equity

High ROE: SOP has a negative Return on Equity (-31.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Synertec's financial position?


Financial Position Analysis

Short Term Liabilities: SOP's short term assets (A$5.6M) exceed its short term liabilities (A$2.9M).

Long Term Liabilities: SOP's short term assets (A$5.6M) exceed its long term liabilities (A$109.1K).


Debt to Equity History and Analysis

Debt Level: SOP is debt free.

Reducing Debt: SOP has no debt compared to 5 years ago when its debt to equity ratio was 14.9%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SOP has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SOP is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Synertec current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average board tenure


CEO

Michael Carroll

3.08yrs

Tenure

AU$364,684

Compensation

Mr. Michael Carroll serves as Managing Director of SML Corporation Limited. Mr. Carroll serves as Managing Director and Director at Synertec Corp. Ltd. Mr. Carroll served as Managing Director of Synertec ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD266.78K) is about average for companies of similar size in the Australian market ($USD279.78K).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Michael Carroll
MD, CEO & Director3.08yrsAU$364.68kno data
Leeanne Bond
Independent Non-Executive Chairperson3.08yrsAU$82.17k1.01%
A$ 130.9k
Kiat Poh
Independent Non-Executive Director7.92yrsAU$48.33k0.88%
A$ 113.9k
Dennis Lin
Independent Non-Executive Director1.08yrsAU$40.00kno data

3.1yrs

Average Tenure

Experienced Board: SOP's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.2%.


Top Shareholders

Company Information

Synertec Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Synertec Corporation Limited
  • Ticker: SOP
  • Exchange: ASX
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$12.985m
  • Shares outstanding: 276.27m
  • Website: https://www.synertec.com.au

Location

  • Synertec Corporation Limited
  • 57 Stewart Street
  • Level 1
  • Richmond
  • Victoria
  • 3121
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2017
SOPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2017

Biography

Synertec Corporation Limited provides specialist engineering and compliance services in Australia. The company offers services in the areas of project and construction management; process and mechanical en ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:03
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.