Syneos Health (NasdaqGS:SYNH) - Share price, News & Analysis

SYNH fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

SYNH Stock Overview

Syneos Health, Inc. provides biopharmaceutical outsourcing solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America.

Rewards

Trading at 53.5% below our estimate of its fair value

Earnings are forecast to grow 24.7% per year

Earnings have grown 50% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Syneos Health Competitors

Avantor

NYSE:AVTR

US$18.3b

UnitedHealth Group

NYSE:UNH

US$455.4b

WuXi AppTec

SHSE:603259

CN¥286.8b

IDEXX Laboratories

NasdaqGS:IDXX

US$30.4b

Price History & Performance

Summary of all time highs, changes and price drops for Syneos Health
Historical stock prices
Current Share Price	US$70.11
52 Week High	US$104.18
52 Week Low	US$66.73
Beta	1.79
1 Month Change	-12.83%
3 Month Change	-21.20%
1 Year Change	-18.24%
3 Year Change	69.23%
5 Year Change	25.20%
Change since IPO	242.17%

Shareholder Returns

	SYNH	US Life Sciences	US Market
7D	-5.0%	-1.4%	-2.5%
1Y	-18.2%	-8.6%	-10.4%

Return vs Industry: SYNH underperformed the US Life Sciences industry which returned -8.6% over the past year.

Return vs Market: SYNH underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is SYNH's price volatile compared to industry and market?
SYNH volatility
SYNH Average Weekly Movement	6.2%
Life Sciences Industry Average Movement	10.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: SYNH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SYNH's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	26,751	Michelle Keefe	https://www.syneoshealth.com

Syneos Health, Inc. provides biopharmaceutical outsourcing solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. It operates through two segments, Clinical Solutions and Commercial Solutions. The Clinical Solutions segment offers services for the development of diagnostics, drugs, biologics, devices, and digital therapeutics in the Phase I to IV of clinical development.

Syneos Health Fundamentals Summary

How do Syneos Health's earnings and revenue compare to its market cap?
SYNH fundamental statistics
Market Cap	US$7.19b
Earnings (TTM)	US$242.28m
Revenue (TTM)	US$5.34b

29.7x

P/E Ratio

1.3x

P/S Ratio

Is SYNH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYNH income statement (TTM)
Revenue	US$5.34b
Cost of Revenue	US$4.09b
Gross Profit	US$1.25b
Other Expenses	US$1.00b
Earnings	US$242.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.36
Gross Margin	23.35%
Net Profit Margin	4.54%
Debt/Equity Ratio	88.0%

How did SYNH perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SYNH ($70.11) is trading below our estimate of fair value ($150.83)

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

Price To Earnings Ratio

PE vs Industry: SYNH is good value based on its PE Ratio (29.7x) compared to the US Life Sciences industry average (30.4x).

PE vs Market: SYNH is poor value based on its PE Ratio (29.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: SYNH is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: SYNH's PB Ratio (2.2x) is in line with the US Life Sciences industry average.

Future Growth

How is Syneos Health forecast to perform in the next 1 to 3 years based on estimates from 9 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

24.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYNH's forecast earnings growth (24.7% per year) is above the savings rate (1.9%).

Earnings vs Market: SYNH's earnings (24.7% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: SYNH's revenue (7.5% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: SYNH's revenue (7.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SYNH's Return on Equity is forecast to be low in 3 years time (15.6%).

Past Performance

How has Syneos Health performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

50.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SYNH has high quality earnings.

Growing Profit Margin: SYNH's current net profit margins (4.5%) are higher than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: SYNH's earnings have grown significantly by 50% per year over the past 5 years.

Accelerating Growth: SYNH's earnings growth over the past year (22.4%) is below its 5-year average (50% per year).

Earnings vs Industry: SYNH earnings growth over the past year (22.4%) underperformed the Life Sciences industry 22.4%.

Return on Equity

High ROE: SYNH's Return on Equity (7.3%) is considered low.

Financial Health

How is Syneos Health's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SYNH's short term assets ($1.9B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: SYNH's short term assets ($1.9B) do not cover its long term liabilities ($3.3B).

Debt to Equity History and Analysis

Debt Level: SYNH's net debt to equity ratio (84.4%) is considered high.

Reducing Debt: SYNH's debt to equity ratio has reduced from 140.8% to 88% over the past 5 years.

Debt Coverage: SYNH's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: SYNH's interest payments on its debt are well covered by EBIT (6x coverage).

Balance Sheet

Dividend

What is Syneos Health current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SYNH'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 SYNH's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SYNH has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

1.5yrs

Average management tenure

CEO

Michelle Keefe (54 yo)

0.083

Tenure

US$2,309,774

Compensation

Ms. Michelle Keefe served as President of Medical Affairs and Commercial Solutions for Syneos Health, Inc. since November 2021 until April 2022 and serves as its Chief Executive Officer and Director since...

CEO Compensation Analysis

Compensation vs Market: Michelle's total compensation ($USD2.31M) is below average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: SYNH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: SYNH's board of directors are considered experienced (3.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31