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SYNT

Synthomer LSE:SYNT Stock Report

Last Price

UK£2.07

Market Cap

UK£968.3m

7D

10.2%

1Y

-63.3%

Updated

11 Aug, 2022

Data

Company Financials +
SYNT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends3/6

SYNT Stock Overview

Synthomer plc operates as a specialty chemicals company.

Synthomer Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Synthomer
Historical stock prices
Current Share PriceUK£2.07
52 Week HighUK£5.71
52 Week LowUK£1.82
Beta1.15
1 Month Change-10.92%
3 Month Change-30.80%
1 Year Change-63.26%
3 Year Change-28.75%
5 Year Change-56.33%
Change since IPO-8.32%

Recent News & Updates

Shareholder Returns

SYNTGB ChemicalsGB Market
7D10.2%0.4%-0.3%
1Y-63.3%-26.7%-9.1%

Return vs Industry: SYNT underperformed the UK Chemicals industry which returned -26.1% over the past year.

Return vs Market: SYNT underperformed the UK Market which returned -8.9% over the past year.

Price Volatility

Is SYNT's price volatile compared to industry and market?
SYNT volatility
SYNT Average Weekly Movement7.0%
Chemicals Industry Average Movement7.0%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: SYNT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SYNT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18634,632Michael Willomehttps://www.synthomer.com

Synthomer plc operates as a specialty chemicals company. It operates through four segments: Performance Elastomers, Functional Solutions, Industrial Specialities, and Acrylate Monomers. The company offers pressure sensitive adhesives, acrylic polymers, acrylic dispersions, saturants, release coatings, and other adhesives; water-based carboxylated styrene butadiene rubber, redispersible powder, flooring adhesive, and additives for construction applications; and impregnation binders, styrene butadiene copolymers, dispersions, polymer binders, and butadiene-based binders for textiles applications.

Synthomer Fundamentals Summary

How do Synthomer's earnings and revenue compare to its market cap?
SYNT fundamental statistics
Market CapUK£968.31m
Earnings (TTM)UK£93.80m
Revenue (TTM)UK£2.43b

10.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYNT income statement (TTM)
RevenueUK£2.43b
Cost of RevenueUK£1.88b
Gross ProfitUK£553.40m
Other ExpensesUK£459.60m
EarningsUK£93.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin22.74%
Net Profit Margin3.85%
Debt/Equity Ratio110.7%

How did SYNT perform over the long term?

See historical performance and comparison

Dividends

12.2%

Current Dividend Yield

122%

Payout Ratio

Does SYNT pay a reliable dividends?

See SYNT dividend history and benchmarks
When do you need to buy SYNT by to receive an upcoming dividend?
Synthomer dividend dates
Ex Dividend DateOct 06 2022
Dividend Pay DateNov 04 2022
Days until Ex dividend55 days
Days until Dividend pay date84 days

Does SYNT pay a reliable dividends?

See SYNT dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is SYNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SYNT?

Other financial metrics that can be useful for relative valuation.

SYNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA6.5x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does SYNT's PE Ratio compare to its peers?

SYNT PE Ratio vs Peers
The above table shows the PE ratio for SYNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.1x
TET Treatt
30.9x5.5%UK£482.5m
VCT Victrex
23.2x9.6%UK£1.6b
JMAT Johnson Matthey
34.8x19.0%UK£4.0b
HEIQ HeiQ
43.6xn/aUK£95.5m
SYNT Synthomer
10.3x11.1%UK£968.3m

Price-To-Earnings vs Peers: SYNT is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (33.1x).


Price to Earnings Ratio vs Industry

How does SYNT's PE Ratio compare vs other companies in the European Chemicals Industry?

Price-To-Earnings vs Industry: SYNT is good value based on its Price-To-Earnings Ratio (10.3x) compared to the UK Chemicals industry average (23.2x)


Price to Earnings Ratio vs Fair Ratio

What is SYNT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SYNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: SYNT is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (14x).


Share Price vs Fair Value

What is the Fair Price of SYNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYNT (£2.07) is trading below our estimate of fair value (£3.01)

Significantly Below Fair Value: SYNT is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYNT's forecast earnings growth (11.1% per year) is above the savings rate (0.9%).

Earnings vs Market: SYNT's earnings (11.1% per year) are forecast to grow faster than the UK market (9.4% per year).

High Growth Earnings: SYNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: SYNT's revenue (4.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SYNT's revenue (4.7% 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 (16.2%).


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Past Performance

How has Synthomer performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SYNT has a large one-off loss of £76.7M impacting its June 30 2022 financial results.

Growing Profit Margin: SYNT's current net profit margins (3.9%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: SYNT's earnings have grown by 12.5% 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 (-56.7%) over the past year, making it difficult to compare to the Chemicals industry average (-17.8%).


Return on Equity

High ROE: SYNT's Return on Equity (8.4%) is considered low.


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Financial Health

How is Synthomer's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SYNT's short term assets (£1.3B) exceed its short term liabilities (£833.2M).

Long Term Liabilities: SYNT's short term assets (£1.3B) do not cover its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: SYNT's net debt to equity ratio (87.5%) is considered high.

Reducing Debt: SYNT's debt to equity ratio has increased from 103.3% to 110.7% over the past 5 years.

Debt Coverage: SYNT's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: SYNT's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


12.21%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 12 2022Ex Dividend DateOct 06 2022Dividend Pay DateNov 04 202229 days from Ex DividendBuy in the next 55 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SYNT's dividend (12.21%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: SYNT's dividend (12.21%) is in the top 25% of dividend payers in the UK market (5.11%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (122.3%), SYNT's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (327.5%), SYNT's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure


CEO

Michael Willome (56 yo)

0.75

Tenure

UK£789,273

Compensation

Mr. Michael Willome, lic. oec. HSG serves as the Chief Executive Officer at Synthomer plc since November 1, 2021 and serves as its Executive Director since 2021.He had been Group Chief Executive Officer o...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD963.90K) is about average for companies of similar size in the UK market ($USD1.37M).

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Leadership Team

Experienced Management: SYNT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SYNT's board of directors are considered experienced (3 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 10%.


Top Shareholders

Company Information

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


Key Information

  • Name: Synthomer plc
  • Ticker: SYNT
  • Exchange: LSE
  • Founded: 1863
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: UK£968.315m
  • Shares outstanding: 467.33m
  • Website: https://www.synthomer.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.