Synertec Corporation Limited (SOP) AI Stock Analysis

• Market Cap: AU$16.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.27
• Revenue Growth: 9.01%
• EPS Growth: -4.27%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 519,334,400
• 10 Day Avg. Volume: 586,006
• 30 Day Avg. Volume: 2,093,509
• PEG Ratio: 1.11
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• 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

• Rating: 50 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Synertec Corporation Limited's stock score is primarily impacted by weak financial performance and challenging valuation metrics. The stock's technical indicators suggest moderate market momentum, but significant operational improvements are needed to enhance profitability and attract investors. The negative P/E ratio and lack of dividend yield further weigh on the valuation.

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 providing engineering and technology consulting services to clients in the infrastructure, energy, and water industries. The company's key revenue streams include project-based fees for engineering design and consultancy, recurring revenue from long-term service contracts, and sales or licensing of proprietary technologies developed in-house. Additionally, strategic partnerships with industry leaders and government bodies play a significant role in securing large-scale projects and expanding its market reach, thereby contributing to its earnings.

Synertec Corporation Limited Financial Statement Overview

Summary

Synertec Corporation Limited faces significant challenges in profitability and cash flow management. Despite some revenue growth, negative profit margins and cash flows persist, indicating operational difficulties. The balance sheet is stable but requires operational improvements for better profitability and liquidity.

Income Statement

Synertec Corporation Limited has shown inconsistent revenue growth, with a recent increase from 2023 to 2024. However, profitability remains a concern as both Gross Profit Margin and Net Profit Margin are negative. The company has struggled with negative EBIT and EBITDA margins, indicating operational challenges in achieving profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. Return on Equity is negative, indicating inefficiencies in generating returns for shareholders. However, the equity ratio is relatively strong, suggesting a stable capital structure despite ongoing losses.

Cash Flow

Operating cash flows are consistently negative, leading to strained liquidity. Free cash flow has decreased significantly, reflecting increased capital expenditures and operational losses. The positive financing cash flow indicates reliance on external funding to sustain operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
18.41M	18.95M	14.81M	10.89M	8.39M	11.12M
	Gross Profit
680.93K	196.37K	-1.21M	-529.64K	290.69K	-27.67K
	EBIT
-517.64K	-3.75M	-6.48M	-5.05M	-2.23M	-1.86M
	EBITDA
-7.15M	-6.06M	-5.77M	-3.54M	-1.76M	-1.45M
	Net Income Common Stockholders
-8.10M	-7.26M	-5.86M	-3.98M	-3.35M	-1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.10M	6.46M	10.65M	4.12M	2.63M	3.04M
	Total Assets
12.43M	20.45M	19.16M	10.90M	8.23M	6.95M
	Total Debt
1.46M	2.59M	1.36M	1.52M	1.60M	100.31K
	Net Debt
-5.64M	-3.83M	-9.30M	-2.60M	-1.03M	-2.94M
	Total Liabilities
4.97M	8.39M	7.62M	5.74M	6.13M	3.01M
	Stockholders Equity
7.47M	12.05M	11.54M	5.16M	2.10M	3.95M
Cash Flow		Free Cash Flow
-7.41M	-10.03M	-5.45M	-5.20M	-795.10K	-2.55M
	Operating Cash Flow
-4.57M	-6.19M	-5.08M	-4.83M	-357.61K	-2.51M
	Investing Cash Flow
-2.84M	-3.83M	-330.51K	-118.33K	-1.27M	1.46M
	Financing Cash Flow
9.20M	5.79M	11.95M	6.44M	1.21M	-249.15K

Synertec Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 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 Neutral. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SOP.

Synertec Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
SOP	50 Neutral	AU$16.62M	―	-100.21%	―	9.01%	-4.27%
EXMXF		$271.72M	83.33	2.89%	―	―	―
NXDCF		$5.48B	―	-2.06%	―	―	―
E8R		€265.41M	96.98	8.54%	―	―	―
RUL	73 Outperform	AU$663.44M	101.69	11.59%	―	9.76%	-28.92%
AD1	46 Neutral	AU$7.76M	―	-245.01%	―	-17.50%	66.33%

Synertec Corporation Limited Corporate Events

Synertec Director Increases Stake with New Share Acquisition

Synertec Corporation Limited announced a change in the director’s interest, with Ian Campbell acquiring 300,000 fully paid ordinary shares through an on-market acquisition. This move reflects a strategic decision by the director to increase his stake in the company, potentially signaling confidence in the company’s future performance and stability. The acquisition may have implications for stakeholders as it could influence market perceptions and investor confidence.

Synertec Joins Sydney Water’s SCADA and Electrical Services Panel

Synertec Corporation Limited has been appointed to Sydney Water’s SCADA and Electrical Services Panel, which provides access to $245 million in water-related project work over the next five years. This appointment strengthens Synertec’s position in the Australian water technology sector, allowing it to provide services to Sydney Water’s Regional Delivery Partners, who support a $34 billion infrastructure investment. This strategic development enhances Synertec’s engagement with major water utilities across Victoria, Western Australia, and New South Wales, positioning the company for significant revenue growth.

Synertec Corporation Announces Cessation of 10 Million Securities

Synertec Corporation Limited announced the cessation of 10,000,000 securities due to the expiry of options without exercise or conversion as of March 15, 2025. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and market positioning.