Synertec Corporation Limited (SOP) AI Stock Analysis

• Market Cap: AU$12.46M
• Dividend Yield: N/A
• Average Volume (3M): 82.15K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: -6.10%
• EPS Growth: 12.50%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 519,334,400
• 10 Day Avg. Volume: 86,133
• 30 Day Avg. Volume: 82,148
• PEG Ratio: 0.19
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -2.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.02 ▲(15.00% Upside)

The score is primarily weighed down by weak financial performance: negative profitability, high leverage, and negative operating/free cash flow. Technicals are mixed but lean bearish given the negative MACD and trading below longer-term moving averages. Valuation is also constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

EPS Growth

Reported EPS growth of 12.5% signals improving earnings momentum despite recent losses. Sustained EPS improvement indicates operational leverage or cost control, which can help stabilize profitability, reduce balance-sheet pressure and improve debt servicing over several quarters.

Cash conversion resilience

A positive free cash flow to net income ratio shows the company converts some accounting losses into cash. That structural cash conversion reduces immediate liquidity strain, supports working capital and lowers near-term refinancing risk while recovery plans are implemented.

Equity buffer

A moderate equity ratio provides a capital buffer to absorb shocks and losses. This structural equity base can sustain operations during restructuring, preserve creditor confidence and improve access to incremental financing options over a multi-quarter turnaround period.

Negative Factors

Revenue decline & negative margins

Revenue is declining (~6%) while margins remain negative, indicating shrinking scale and weak pricing or cost structure. Persistent top-line contraction and loss-making operations undermine long-term margin recovery and make profitable growth difficult without structural business changes.

High leverage

Significant debt levels raise interest and refinancing risk and constrain strategic flexibility. In engineering and construction, elevated leverage limits bidding capacity, capital investment and ability to absorb project delays, increasing the likelihood of covenant stress or dilutive financing needs.

Negative operating cash flow

Negative operating and free cash flows show the business is burning cash, depleting liquidity and forcing reliance on external funding. Sustained cash outflows impair the company's ability to fund projects, meet creditors and invest in growth without material financing or restructuring.

Synertec Corporation Limited Business Overview & Revenue Model

Company Description

Synertec Corporation Limited operates as a diversified technology design and development company in Australia. It operates in two segments, Engineering and Technology. The company offers services in the areas of automation and control systems engineering, electrical and instrumentation engineering, functional safety, metering and sampling solutions, process and mechanical engineering, project and construction management, systems engineering, and validation and compliance engineering. It serves infrastructure, water, advanced manufacturing, and energy sectors. The company was formerly known as SML Corporation Limited and changed its name to Synertec Corporation Limited in August 2017. Synertec Corporation Limited is based in Camberwell, Australia.

How the Company Makes Money

Synertec Corporation Limited generates revenue through a diversified revenue model that includes consulting fees for engineering services, software licensing fees, and maintenance contracts for its proprietary software solutions. The company secures revenue by forming strategic partnerships with key players in the resources and energy sectors, enabling it to access larger projects and client bases. Additionally, ongoing support and maintenance services for its software products provide a steady stream of recurring revenue. The company's focus on innovation and custom solutions also allows it to command premium pricing for its specialized services.

Synertec Corporation Limited Financial Statement Overview

Summary

Synertec Corporation Limited is experiencing financial challenges with declining revenues, negative profitability, and high leverage. The company needs to improve operational efficiency and manage its debt levels to stabilize its financial position.

Income Statement

Synertec Corporation Limited has faced declining revenue growth with a negative trend in profitability. The gross profit margin is extremely low, and net profit margins are negative, indicating significant losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Return on equity is negative, suggesting that the company is not generating profit from shareholders' equity. The equity ratio is moderate, but the overall financial stability is concerning.

Cash Flow

Operating and free cash flows are negative, indicating cash outflows from operations. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but overall cash flow health is weak with declining free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.80M	17.80M	18.95M	14.80M	10.89M	8.39M
Gross Profit	130.41K	130.41K	196.38K	-1.21M	-529.64K	290.69K
EBITDA	-6.26M	-6.26M	-6.55M	-5.77M	-4.52M	-1.76M
Net Income	-7.64M	-7.64M	-7.26M	-5.86M	-3.98M	-3.35M
Balance Sheet
Total Assets	16.88M	16.88M	20.45M	19.16M	10.90M	8.23M
Cash, Cash Equivalents and Short-Term Investments	3.74M	3.74M	6.46M	10.65M	4.16M	2.63M
Total Debt	4.70M	4.70M	2.59M	2.42M	1.52M	1.60M
Total Liabilities	12.07M	12.07M	8.39M	7.62M	5.74M	6.13M
Stockholders Equity	4.81M	4.81M	12.05M	11.54M	5.16M	2.10M
Cash Flow
Free Cash Flow	-5.30M	-5.30M	-10.03M	-5.45M	-5.20M	-795.10K
Operating Cash Flow	-4.07M	-4.07M	-6.19M	-5.08M	-4.83M	-357.61K
Investing Cash Flow	-1.47M	-1.47M	-3.83M	-330.51K	-118.33K	-1.27M
Financing Cash Flow	2.94M	2.82M	5.79M	11.95M	6.44M	1.21M

Synertec Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOP, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SOP.

Synertec Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSA	70 Outperform	AU$12.05M	3.18	87.22%	―	12.34%	-66.13%
EVZ	67 Neutral	AU$31.59M	25.49	3.66%	―	-9.21%	-42.37%
VBC	65 Neutral	AU$63.89M	16.28	17.38%	0.49%	-8.28%	89.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSI	48 Neutral	AU$10.69M	-3.02	-11.81%	―	-36.40%	-192.91%
SOP	44 Neutral	AU$12.46M	-1.63	-90.66%	―	-6.10%	12.50%

Synertec Corporation Limited Corporate Events

Synertec Delivers Cashflow Turnaround and Expands Pipeline Across Powerhouse and Engineering Units

Synertec reported a strong second quarter of FY26, with group revenue and other income rising 25% year-on-year to $5.1 million for the quarter and 19% to $10.1 million for the first half, the highest first-half result since FY19. The company turned around its cash position to generate $1.1 million of positive operating cashflow in the period, while cutting corporate and management costs by $1.1 million in the half, and ended the quarter with $2.7 million in cash and improved net cash after investing $0.7 million in two new Powerhouse units. Its three operating Powerhouse units delivered $0.6 million in high-margin revenue and continued to demonstrate near-perfect power availability for remote gas wells, with two additional units on track for deployment in the fourth quarter and a burgeoning $70 million pipeline of expressions of interest and tenders. The Engineering division maintained above-target revenue, margin and utilisation, supported by a $110 million opportunity pipeline, sector-based restructuring, national geographic expansion and new cyber security capability aimed at strengthening its position across defence, water and other infrastructure sectors, underscoring management’s confidence in sustaining profitable growth and scaling both businesses.

The most recent analyst rating on (AU:SOP) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Synertec Corporation Limited stock, see the AU:SOP Stock Forecast page.

Synertec Director Increases Stake with Significant Share Acquisition

Synertec Corporation Limited has announced a change in the director’s interest in securities, specifically involving Johannes Risseeuw. The director acquired a total of 1,400,000 fully paid ordinary shares in two separate transactions, reflecting a strategic move that could impact the company’s market positioning and shareholder interests.

The most recent analyst rating on (AU:SOP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Synertec Corporation Limited stock, see the AU:SOP Stock Forecast page.

Synertec Corporation Limited’s 2025 Annual General Meeting Highlights

Synertec Corporation Limited held its 2025 Annual General Meeting, where details of resolutions, proxies received, and votes cast were discussed. This meeting is part of Synertec’s ongoing efforts to align its operations with its mission of supporting a low carbon future, which may have implications for its market positioning and stakeholder engagement.

Synertec Secures Contract with Shell QGC for Renewable Powerhouse System

Synertec Corporation Limited has secured a contract with Shell QGC to supply a Powerhouse system for a coal seam gas well site in Queensland, Australia. This contract highlights the scalability and reliability of Synertec’s zero-emission Powerhouse technology, which utilizes AI-driven predictive intelligence to provide continuous, fossil-fuel-free power for remote industrial applications. The deal is expected to enhance Synertec’s market position by demonstrating the commercial and technical viability of its renewable energy solutions, potentially leading to broader deployment across domestic and international markets.

Synertec Corporation Reports Strategic Renewal and Growth Amidst Challenges

At its 2025 Annual General Meeting, Synertec Corporation Limited highlighted a year of strategic renewal and operational resilience despite challenging macroeconomic conditions in the Australian engineering sector. The company reported an 8% decrease in total revenue due to sector-wide slowdowns, but a strategic focus on core sectors and a company-wide restructure led to a significant rebound in the second half of the year. Synertec’s engineering business achieved a notable improvement in EBITDA, driven by strong client relationships and major panel appointments in the water sector. Additionally, the company’s Technology division saw substantial growth in its Powerhouse microgrid power system, underpinned by strategic partnerships with global battery and technology suppliers.