ASX:SOP

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.

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

9.5%

SOP

-2.6%

AU Professional Services

0.1%

AU Market


1 Year Return

-48.9%

SOP

-23.5%

AU Professional Services

-22.8%

AU Market

Return vs Industry: SOP underperformed the Australian Professional Services industry which returned -23.5% over the past year.

Return vs Market: SOP underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

SOPIndustryMarket
7 Day9.5%-2.6%0.1%
30 Day-4.2%-35.7%-28.8%
90 Day-46.5%-39.0%-30.1%
1 Year-48.9%-48.9%-21.3%-23.5%-19.4%-22.8%
3 Yearn/a-6.5%-14.4%-9.5%-21.7%
5 Yearn/a0.8%-14.4%2.1%-20.8%

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?

1.11x

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 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 is good value based on its PB Ratio (1.1x) compared to the AU Professional Services industry average (1.2x).


Next Steps

Future Growth

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

17.8%

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?

-41.3%

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 -41.3% 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 (12.9%).


Return on Equity

High ROE: SOP has a negative Return on Equity (-18.39%), 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$5.3M) exceed its short term liabilities (A$3.3M).

Long Term Liabilities: SOP's short term assets (A$5.3M) exceed its long term liabilities (A$105.5K).


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 21.1%.


Balance Sheet

Inventory Level: SOP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SOP's debt is covered by short term assets.


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SOP has less than a year of cash runway if free cash flow continues to reduce at historical rates of -18.6% each year


Next Steps

Dividend

What is Synertec's 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 payouts.

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

2.6yrs

Average board tenure


CEO

Michael Carroll

2.58s

Tenure

AU$357,510

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 ($USD219.28K) is about average for companies of similar size in the Australian market ($USD242.11K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Michael Carroll
MD, CEO & Director2.58yrsAU$357.51kno data
Leeanne Bond
Independent Non-Executive Chairperson2.58yrsAU$85.00k1.26% A$64.1k
Kiat Poh
Independent Non-Executive Director7.42yrsAU$50.00k1.1% A$55.7k
Dennis Lin
Independent Non-Executive Director0.58yrno datano data

2.6yrs

Average Tenure

Experienced Board: SOP's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SOP 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 10.6%.


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$5.076m
  • Shares outstanding: 220.70m
  • 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 consulting services in Australia. The company offers services in the areas of project and construction management; process and mechanical engineering; LNG custody transfer system; analyzer systems; automation and control engineering; and functional safety, as well as compliance and validation services. It serves oil and gas, pharmaceutical, water, petro chemical, terminal and defense, and food and diary industries. Synertec Corporation Limited has a strategic alliance with Babbage Consultants. The company was formerly known as SML Corporation Limited and changed its name to Synertec Corporation Limited as a result of its acquisition of Synertec Pty Ltd in August 2017. The company is headquartered in Richmond, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:54
End of Day Share Price2020/03/24 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.