AIM:SNX

Stock Analysis Report

Executive Summary

Synectics plc designs, delivers, and manages integrated security and surveillance systems for various security environments worldwide.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

SNX

-0.1%

GB Electronic

1.1%

GB Market


1 Year Return

-25.6%

SNX

11.3%

GB Electronic

2.7%

GB Market

Return vs Industry: SNX underperformed the UK Electronic industry which returned 11.3% over the past year.

Return vs Market: SNX underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

SNXIndustryMarket
7 Day0.6%-0.1%1.1%
30 Day-8.6%-4.0%-1.7%
90 Day-11.1%-4.1%-2.7%
1 Year-23.8%-25.6%13.1%11.3%7.8%2.7%
3 Year-19.2%-23.8%49.3%42.6%19.3%4.7%
5 Year-47.4%-50.8%129.6%110.2%38.0%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SNX (£1.6) is trading above our estimate of fair value (£0.93)

Significantly Undervalued: SNX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SNX is good value based on its PE Ratio (16.9x) compared to the Electronic industry average (19.7x).

PE vs Market: SNX is poor value based on its PE Ratio (16.9x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: SNX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SNX is good value based on its PB Ratio (0.7x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Synectics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNX's forecast earnings growth (36.4% per year) is above the savings rate (1.2%).

Earnings vs Market: SNX's earnings (36.4% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: SNX's revenue (11.4% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: SNX's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SNX's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Synectics performed over the past 5 years?

51.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SNX's earnings have grown significantly by 51% per year over the past 5 years.

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

Earnings vs Industry: SNX had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: SNX's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: SNX's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: SNX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Synectics's financial position?


Financial Position Analysis

Short Term Liabilities: SNX's short term assets (£41.1M) exceeds its short term liabilities (£25.0M)

Long Term Liabilities: SNX's short term assets (41.1M) exceeds its long term liabilities (669.0K)


Debt to Equity History and Analysis

Debt Level: SNX is debt free.

Reducing Debt: SNX has no debt compared to 5 years ago when its debt to equity ratio was 13.9%.

Debt Coverage: SNX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SNX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

What is Synectics's current dividend yield, its reliability and sustainability?

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.4%industryaverage1.6%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SNX's dividend (2.94%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: SNX's dividend (2.94%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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

Growing Dividend: SNX's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), SNX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNX's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

What is the CEO of Synectics's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average management tenure


CEO

Paul Webb (53yo)

4.7yrs

Tenure

UK£387,000

Compensation

Mr. Paul Anthony Webb has been the Chief Executive Officer of Synectics plc since February 1, 2015. Mr. Webb served as Managing Director of Synectics Industrial Systems at Synectics plc (formerly, Quadneti ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD486.76K) is about average for companies of similar size in the UK market ($USD314.44K).

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


Management Age and Tenure

7.4yrs

Average Tenure

Experienced Management: SNX's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

14.2yrs

Average Tenure

63yo

Average Age

Experienced Board: SNX's board of directors are seasoned and experienced ( 14.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£6927 Nov 18
Paul Webb
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares36
Max PriceUK£1.92
BuyUK£4027 Nov 18
Michael Stilwell
EntityIndividual
Shares21
Max PriceUK£1.92
BuyUK£1027 Nov 18
Greg Alcorn
EntityIndividual
Shares5
Max PriceUK£1.92

Ownership Breakdown


Management Team

  • Paul Burchfield

    Managing Director of SSS Management Services Limited

    • Tenure: 13.1yrs
  • Graham Jones (61yo)

    Divisional Managing Director of Mobile Systems

    • Tenure: 10.2yrs
  • Paul Webb (53yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£387.00k
  • Amanda Larnder

    Acting Finance Director

    • Tenure: 0.5yrs

Board Members

  • David Coghlan (64yo)

    Non-Executive Chairman

    • Tenure: 14.2yrs
    • Compensation: UK£85.00k
  • Steve Coggins (69yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: UK£30.00k
  • Michael J. Butler (55yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • Peter Rae (63yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • John Katnic

    Chairman of Synectic Systems

    • Tenure: 0yrs
  • Terry Baker

    Chairman of SSS Management Services Limited

    • Tenure: 0yrs
  • Paul Webb (53yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£387.00k

Company Information

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


Key Information

  • Name: Synectics plc
  • Ticker: SNX
  • Exchange: AIM
  • Founded: 1983
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£26.939m
  • Shares outstanding: 16.78m
  • Website: https://www.synecticsplc.com

Number of Employees


Location

  • Synectics plc
  • Studley Point
  • 88 Birmingham Road
  • Studley
  • Warwickshire
  • B80 7AS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Synectics plc designs, delivers, and manages integrated security and surveillance systems for various security environments worldwide. The company operates through two divisions, Systems; and Integration & ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:36
End of Day Share Price2019/10/14 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.