Synertec Corporation Limited (SOP) AI Stock Analysis

• Market Cap: AU$14.02M
• Dividend Yield: N/A
• Average Volume (3M): 82.15K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.65
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.03 ▲(30.00% Upside)

Synertec Corporation Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. The technical analysis suggests a bearish trend, with the stock trading below key moving averages. Valuation metrics are weak due to negative profitability and the absence of a dividend yield.

Positive Factors

Diversified Revenue Model

A diversified revenue model helps mitigate risks associated with reliance on a single income stream, providing stability and potential for growth.

Strategic Partnerships

Strategic partnerships enhance market access and project opportunities, supporting long-term revenue growth and competitive positioning.

Innovation Focus

Emphasizing innovation enables the company to offer unique solutions, maintaining competitive advantages and supporting premium pricing strategies.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Profitability

Sustained negative profitability can erode shareholder value and hinder investment in growth opportunities, impacting long-term viability.

Weak Cash Flow

Negative cash flow from operations indicates challenges in sustaining business activities without external financing, affecting financial health.

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: Positive

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 below 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 bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 18.84 is Positive, 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
RDG	74 Outperform	―	―	―	―	66.22%	20.83%
EVZ	69 Neutral	AU$26.23M	21.08	3.66%	―	-9.21%	-42.37%
VBC	66 Neutral	€33.60M	8.91	17.38%	0.69%	-8.28%	89.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSA	61 Neutral	AU$8.66M	2.29	87.22%	―	12.34%	-66.13%
WSI	48 Neutral	AU$9.79M	-2.76	-11.81%	―	-36.40%	-192.91%
SOP	44 Neutral	AU$14.02M	-1.84	-90.66%	―	-6.10%	12.50%

Synertec Corporation Limited Corporate Events

Synertec Corporation Announces 2025 Annual General Meeting with Digital Communication Initiative

Synertec Corporation Limited has announced its 2025 Annual General Meeting, scheduled for November 26, 2025, to be held in-person at their Camberwell, Victoria offices. Due to recent legislative changes, the company will provide meeting materials electronically and will not send physical copies unless requested. This move reflects a broader shift towards digital communication and aligns with Synertec’s commitment to sustainable practices. Shareholders are encouraged to update their communication preferences and submit questions in advance. The AGM will include a poll on resolutions using proxies filed prior to the meeting, emphasizing shareholder engagement and participation.

Synertec Corporation Limited Announces FY25 Financial Results

Synertec Corporation Limited has released its financial results and key achievements for the fiscal year ending June 30, 2025. The announcement provides a general overview of the company’s financial performance and strategic accomplishments, although specific details and figures are not disclosed. This release serves as an informational update for stakeholders, emphasizing that the financial information is unaudited and not prepared in accordance with IFRS standards, which may impact the interpretation of the results.

Synertec Secures New Order for Renewable Powerhouse Microgrid from Santos

Synertec Corporation Limited has announced that Santos Limited has ordered another Powerhouse microgrid system for a gas development site in Queensland, Australia. The Powerhouse system, which is 100% renewable and emission-free, has proven to be reliable and cost-effective, with no unplanned maintenance call-outs over five years. This order signifies a broader acceptance and potential for expanded deployment of the Powerhouse technology, which offers significant growth opportunities for Synertec in both domestic and international markets. The system’s deployment is expected to contribute to Synertec’s revenue in Q4 FY26, under a Build, Own, Operate and Maintain model, providing price certainty and operational benefits to customers.

Synertec Corporation Limited Releases 2025 Corporate Governance Statement

Synertec Corporation Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is now available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, outlining the roles and responsibilities of the board and management, and ensuring transparency and accountability in its operations. This announcement reinforces Synertec’s commitment to maintaining high standards of corporate governance, which is crucial for its stakeholders and market positioning.

Synertec Corporation Reports Decrease in Annual Revenue and Losses

Synertec Corporation Limited reported its financial results for the year ending June 30, 2025, revealing a decrease in revenues from ordinary activities to $18,210,373, down from $19,793,030 in the previous year. The company experienced a loss from ordinary activities after tax, with no dividends declared for the year. This financial performance may impact Synertec’s operations and market positioning, as it reflects challenges in maintaining revenue growth and profitability, potentially affecting stakeholder confidence.

Synertec Secures A$4 Million Debt Facility Extension to Boost Renewable Technology Rollout

Synertec Corporation Limited has announced an extension of its debt facility by up to A$4 million with Altor Capital, increasing the total available capital to A$19 million. This extension is aimed at strengthening the company’s balance sheet and providing the necessary financial flexibility to support the rollout of its renewable microgrid technology, ‘Powerhouse,’ and improve its path to profitability. The move is seen as a positive endorsement of Synertec’s strategy and outlook, as it stabilizes its engineering business and prepares for the next phase of development.