Synertec Corporation Limited (SOP) AI Stock Analysis

• Market Cap: AU$12.98M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: 9.01%
• EPS Growth: -4.27%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 519,334,400
• 10 Day Avg. Volume: 1,762,865
• 30 Day Avg. Volume: 1,221,595
• PEG Ratio: 0.87
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• 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

Synertec Corporation Limited's overall stock score is impacted by significant challenges in profitability and cash flow, along with bearish technical indicators. The stable balance sheet offers some support, but the negative valuation metrics further weigh on the score. The absence of earnings call and corporate events data means these factors did not contribute to the assessment.

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 challenges with profitability and cash flow management. Revenue growth is inconsistent, and profitability is hampered by negative margins. The balance sheet is stable with a moderate debt-to-equity ratio, but operational improvements are essential.

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
5.30M	6.46M	10.65M	4.12M	2.63M	3.04M
	Total Assets
14.77M	20.45M	19.16M	10.90M	8.23M	6.95M
	Total Debt
1.32M	2.59M	1.36M	1.52M	1.60M	100.31K
	Net Debt
-3.98M	-3.83M	-9.30M	-2.60M	-1.03M	-2.94M
	Total Liabilities
6.64M	8.39M	7.62M	5.74M	6.13M	3.01M
	Stockholders Equity
8.13M	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: 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 below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 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
EOL	76 Outperform	€413.56M	93.48	8.54%	―	13.18%	258.38%
DSE	71 Outperform	$418.23M	494.12	2.89%	―	34.34%	-48.03%
RUL	68 Neutral	AU$623.60M	95.25	11.59%	―	9.76%	-28.92%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
NXT	61 Neutral	AU$8.74B	―	-2.06%	―	-2.69%	-17.50%
SOP	47 Neutral	AU$12.98M	―	-100.21%	―	9.01%	-4.27%
AD1	46 Neutral	AU$7.76M	―	-245.01%	―	-17.50%	66.33%

Synertec Corporation Limited Corporate Events

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.

Synertec Announces Director Cessation and Securities Interest Update

Synertec Corporation Limited has announced the cessation of Dennis Lin as a director effective February 28, 2025. This notice is part of the company’s compliance with ASX listing rules, indicating that Mr. Lin holds no registered securities but has an indirect interest through D3C Pty Ltd, which holds 2,173,913 fully paid ordinary shares. The announcement provides transparency regarding the director’s interests, which is crucial for stakeholders and aligns with regulatory requirements.

Synertec Partners with PHNXX for Renewable Energy Expansion

Synertec Corporation Limited has announced a strategic partnership and investment with PHNXX Pty Ltd, a company based in Victoria that focuses on low-cost agricultural applications for its containerized Battery Energy Solar System (BESS). This partnership is expected to enhance Synertec’s operations by expanding its market presence in the renewable energy sector, potentially benefiting stakeholders through increased innovation and market opportunities.

Synertec Partners with PHNXX to Expand Microgrid Solutions

Synertec Corporation Limited has announced a strategic partnership and investment in PHNXX Pty Ltd, a company specializing in low-cost, agricultural applications for containerized Battery Energy Solar Systems. This collaboration allows Synertec to expand its market reach by adapting its Powerhouse technology for PHNXX’s systems, targeting smaller, less critical applications. The partnership is expected to generate recurring revenue through software services and cross-company sales cooperation. Synertec’s investment in PHNXX, alongside Engie and the Victorian Government, will also enable the company to leverage PHNXX’s supply chain and manufacturing expertise, enhancing its industry positioning and offering new opportunities for stakeholders.

Synertec Corporation Limited Announces FY25 1H Business Update

Synertec Corporation Limited has announced a business update for the first half of the fiscal year 2025, which was released to the market on February 28, 2025. The company is hosting a webinar on March 5, 2025, to provide investors with detailed insights into its performance and strategic developments. This update is crucial for stakeholders as it reflects the company’s ongoing efforts to strengthen its market position and drive growth through innovation.

Synertec Reports Increased Losses and Revenue Decline for H1 2024

Synertec Corporation Limited reported a decrease in revenue and an increased loss for the half-year ending December 31, 2024. Revenue dropped by 7% to $8,518,000, while the loss after tax attributable to owners increased by 25% to $4,246,000. The company did not declare any dividends during this period.