LSE:SYNT

Stock Analysis Report

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Executive Summary

Synthomer plc operates as a speciality chemicals company in the United Kingdom, Germany, Italy, the Netherlands, France, Belgium, Malaysia, China, the United States, rest of Europe, rest of Asia, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.1%

SYNT

-1.2%

GB Chemicals

-2.0%

GB Market


1 Year Return

36.8%

SYNT

-1.9%

GB Chemicals

-17.2%

GB Market

Return vs Industry: SYNT exceeded the UK Chemicals industry which returned -2.2% over the past year.

Return vs Market: SYNT exceeded the UK Market which returned -16.4% over the past year.


Shareholder returns

SYNTIndustryMarket
7 Day-0.1%-1.2%-2.0%
30 Day24.1%4.4%-0.5%
90 Day31.2%7.2%-4.4%
1 Year37.9%36.8%-0.3%-1.9%-14.1%-17.2%
3 Year-8.8%-20.6%-8.6%-16.1%-10.3%-21.4%
5 Year39.8%16.1%14.7%-1.9%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYNT (£3.89) is trading below our estimate of fair value (£4.15)

Significantly Below Fair Value: SYNT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SYNT is poor value based on its PE Ratio (68.4x) compared to the GB Chemicals industry average (35.5x).

PE vs Market: SYNT is poor value based on its PE Ratio (68.4x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SYNT is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SYNT is overvalued based on its PB Ratio (2.6x) compared to the GB Chemicals industry average (2x).


Next Steps

Future Growth

How is Synthomer forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

41.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYNT's forecast earnings growth (41.6% per year) is above the savings rate (1.2%).

Earnings vs Market: SYNT's earnings (41.6% per year) are forecast to grow faster than the UK market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYNT's revenue (7.3% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: SYNT's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYNT's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Synthomer performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYNT has a large one-off loss of £67.3M impacting its June 30 2020 financial results.

Growing Profit Margin: SYNT's current net profit margins (1.7%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SYNT's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: SYNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SYNT had negative earnings growth (-68.8%) over the past year, making it difficult to compare to the Chemicals industry average (-18.3%).


Return on Equity

High ROE: SYNT's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Synthomer's financial position?


Financial Position Analysis

Short Term Liabilities: SYNT's short term assets (£643.6M) exceed its short term liabilities (£374.1M).

Long Term Liabilities: SYNT's short term assets (£643.6M) do not cover its long term liabilities (£1.2B).


Debt to Equity History and Analysis

Debt Level: SYNT's debt to equity ratio (118.5%) is considered high.

Reducing Debt: SYNT's debt to equity ratio has increased from 50.2% to 118.5% over the past 5 years.

Debt Coverage: SYNT's debt is well covered by operating cash flow (22%).

Interest Coverage: SYNT's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYNT's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: SYNT's dividend (1.54%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


Stability and Growth of Payments

Stable Dividend: SYNT's dividend payments have been volatile in the past 10 years.

Growing Dividend: SYNT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as SYNT has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: SYNT's dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Calum MacLean (56 yo)

5.75yrs

Tenure

UK£899,545

Compensation

Mr. Calum G. MacLean has been President and Director at OMNOVA Solutions Inc. since April 1, 2020. Mr. MacLean serves as Chief Executive Officer at Synthomer Deutschland GmbH. Mr. MacLean has been Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Calum's total compensation ($USD1.18M) is below average for companies of similar size in the UK market ($USD1.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Calum MacLean
CEO & Executive Director5.75yrsUK£899.55k0.22%
£ 3.7m
Stephen Bennett
CFO & Executive Director5.42yrsUK£548.66k0.037%
£ 607.0k
Martin Hallam
President of SHE & Operations3.5yrsno datano data
Marshall Moore
Chief Technology Officer0.42yrno datano data
Richard Atkinson
Chief Counsel3yrsno datano data
Tim Hughes
President of Corporate Development1.75yrsno datano data
Neil Whitley
President of Industrial Specialities1.75yrsno datano data
Rob Tupker
President of Functional Solutions & Europe1.75yrsno datano data
Derick Whyte
President of Performance Elastomers Division & Asia1.75yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: SYNT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Calum MacLean
CEO & Executive Director5.75yrsUK£899.55k0.22%
£ 3.7m
Stephen Bennett
CFO & Executive Director5.42yrsUK£548.66k0.037%
£ 607.0k
Richard Atkinson
Chief Counsel3yrsno datano data
Alexander Catto
Non-Executive Director39.75yrsUK£41.20k2.04%
£ 33.8m
Neil Johnson
Chairman8.42yrsUK£180.00k0.029%
£ 486.2k
Hau-Hian Lee
Non-Executive Director18.08yrsUK£41.20k0.024%
£ 388.9k
Just J. Jansz
Independent Non-Executive Director8.5yrsUK£55.00k0.0029%
£ 48.6k
Holly Van Deursen
Independent Non-Executive Director2.08yrsUK£55.00k0.0015%
£ 24.3k
Cynthia Dubin
Independent Non-Executive Director0.25yrno datano data
Brendan W. Connolly
Senior Independent Director5.5yrsUK£65.00k0.00094%
£ 15.5k
Caroline Johnstone
Independent Deputy Chair0.58yrUK£60.00kno data

5.5yrs

Average Tenure

61yo

Average Age

Experienced Board: SYNT's board of directors are considered experienced (5.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Synthomer plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Synthomer plc
  • Ticker: SYNT
  • Exchange: LSE
  • Founded: 1863
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: UK£1.653b
  • Shares outstanding: 424.85m
  • Website: https://www.synthomer.com

Number of Employees


Location

  • Synthomer plc
  • 45 Pall Mall
  • London
  • Greater London
  • SW1Y 5JG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYNTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
7YCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SYNTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Synthomer plc operates as a speciality chemicals company in the United Kingdom, Germany, Italy, the Netherlands, France, Belgium, Malaysia, China, the United States, rest of Europe, rest of Asia, and inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 21:13
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.