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): -0.20
• 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: 46 Neutral
• Price Target: AU$0.03 ▲(25.00% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by weak financial performance (loss-making operations, negative cash flow, and high leverage). Technicals provide some support from positive momentum and price above moving averages, but elevated RSI adds pullback risk. Valuation is constrained by a negative P/E and no dividend yield.

Positive Factors

Revenue Growth

Modest positive revenue growth (~6% reported) indicates ongoing demand for the company's services. Over a 2–6 month horizon, sustained top-line growth provides a foundation to scale fixed-cost absorption and supports the pathway to margin recovery if operating leverage is executed.

FCF to Net Income Coverage

A positive free cash flow to net income ratio implies the company can convert reported losses into cash coverage to some extent. This resilience reduces immediate liquidity stress, improving runway for operational fixes and refinancing options over the medium term.

Moderate Equity Ratio

A moderate equity ratio provides a capital buffer vs. peers with weaker equity positions. This structural equity base supports solvency, enhances access to capital markets or debt refinancing, and gives management time to execute turnaround measures without immediate solvency threats.

Negative Factors

Negative Profitability

Persistently negative gross and net margins show the company is not converting sales into profits, signaling structural pricing or cost issues. Over months this erodes retained earnings, limits reinvestment, and makes operational turnaround harder without sustained margin improvement.

Negative Operating Cash Flow

Ongoing negative operating and free cash flow indicate the business consumes cash to run, requiring external financing to maintain operations. This structural cash burn constrains investment, increases refinancing risk, and elevates the chance of distress if cash generation doesn't improve.

High Leverage / Negative ROE

Significant leverage combined with negative ROE creates material financial risk: interest burdens reduce flexibility, refinancing becomes harder, and negative returns imply capital is destroying shareholder value. Over the medium term this limits strategic options and raises solvency concerns.

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

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Synertec Corporation Limited Financial Statement Overview

Summary

Financials indicate meaningful stress: declining revenue, negative profitability (negative EBIT/EBITDA and net margins), weak cash generation (negative operating and free cash flow), and high leverage with negative ROE.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	19.52M	17.80M	18.95M	14.80M	10.89M	8.39M
Gross Profit	1.07M	130.41K	196.38K	-1.21M	-529.64K	290.69K
EBITDA	-4.20M	-6.26M	-6.55M	-5.77M	-4.52M	-1.76M
Net Income	-5.93M	-7.64M	-7.26M	-5.86M	-3.98M	-3.35M
Balance Sheet
Total Assets	15.33M	16.88M	20.45M	19.16M	10.90M	8.23M
Cash, Cash Equivalents and Short-Term Investments	2.69M	3.74M	6.46M	10.65M	4.16M	2.63M
Total Debt	5.54M	4.70M	2.59M	2.42M	1.52M	1.60M
Total Liabilities	12.76M	12.07M	8.39M	7.62M	5.74M	6.13M
Stockholders Equity	2.57M	4.81M	12.05M	11.54M	5.16M	2.10M
Cash Flow
Free Cash Flow	-3.76M	-5.30M	-10.03M	-5.45M	-5.20M	-795.10K
Operating Cash Flow	-2.57M	-4.07M	-6.19M	-5.08M	-4.83M	-357.61K
Investing Cash Flow	-1.56M	-1.47M	-3.83M	-330.51K	-118.33K	-1.27M
Financing Cash Flow	-200.65K	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 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 0.02, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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
EVZ	72 Outperform	AU$37.06M	3.42	7.07%	―	-9.21%	-42.37%
BSA	68 Neutral	AU$28.61M	0.45	21.63%	―	12.34%	-66.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	61 Neutral	AU$55.11M	7.32	17.89%	0.49%	-8.28%	89.71%
SOP	46 Neutral	AU$12.46M	-1.03	-160.73%	―	-6.10%	12.50%
WSI	44 Neutral	AU$9.40M	4.84	-11.81%	―	-36.40%	-192.91%

Synertec Corporation Limited Corporate Events

Synertec Wins TasNetworks Deal for ARENA-Backed Community Battery Rollout in Tasmania

Synertec Corporation Limited has signed a contract with TasNetworks to design, manufacture, supply and commission six front-of-the-meter Powerhouse community battery energy storage systems across Tasmania, funded under the Australian Renewable Energy Agency’s Advancing Renewables Program. The compact, low-noise systems will be deployed at publicly accessible sites on the distribution network to enhance solar hosting capacity, manage peak demand, support renewable integration, improve voltage management and defer network upgrades, marking Synertec’s entry into the community and distribution-network battery sector and potentially positioning its modular Powerhouse technology as a standard solution in Australia’s emerging community battery market.

TasNetworks will use the installations to evaluate how community batteries can strengthen network reliability, participate in energy markets and inform future tariff structures, while trading energy arbitrage opportunities to help reduce Tasmanian energy costs. The ARENA-backed project, the only funded community battery deployment program in Tasmania, enhances Synertec’s track record following deployments in remote energy operations and underscores its strategic opportunity to scale Powerhouse domestically and globally amid growing demand for high-reliability, zero-emission power solutions.

The most recent analyst rating on (AU:SOP) stock is a Sell 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 Delivers Turnaround in FY26 H1 With Revenue Growth and Positive Cash Flow

Synertec reported strong first-half FY26 results, with group revenue and other income rising 20% to $10.2 million and cash receipts from customers up 18% to $12.4 million. The company achieved its first half-year net operating cash inflow since FY19 at $0.5 million, reflecting disciplined working capital management and improved engineering profitability.

Management’s decisive cost-cutting program delivered about $1.3 million in savings during the period, contributing to a 58% improvement in group EBITDA and a 63% improvement in normalised group EBITDA. Engineering EBITDA surged 144% on a 20% revenue increase, while technology revenue, driven by Powerhouse units on long-term lease to Santos, rose 22%, and the Group met all financial covenants, underscoring a material turnaround in financial performance.

The most recent analyst rating on (AU:SOP) stock is a Sell 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 Narrows Half-Year Loss as Revenue Rises 20%

Synertec Corporation Limited reported a 20% increase in revenue to $10.2 million for the half-year ended 31 December 2025, compared with $8.5 million a year earlier, reflecting growth in its underlying operations. The company’s loss after tax narrowed by 40% to $2.5 million, indicating improved profitability despite a decline in net tangible assets per share to 0.5 cents from 1.5 cents.

No dividends were paid or proposed for the period, underscoring a continued focus on reinvestment and balance sheet management rather than shareholder distributions. The interim financial report was reviewed by the company’s auditor without modification, and Synertec reported no new or lost control over entities and no associates or joint ventures, suggesting a stable corporate structure through the half year.

The most recent analyst rating on (AU:SOP) stock is a Sell 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 Deepens Sydney Water Ties With New Contracts and NSW Expansion

Synertec has secured more than $1 million in operational technology contracts with Sydney Water under a SCADA and electrical services framework, building on its earlier panel appointment that opened access to a large pipeline of infrastructure projects. The work, involving upgrades to existing facilities over the next 12 months, underscores the company’s strengths in control systems, electrical engineering and cyber-secure SCADA solutions.

The company has also signed agreements with all three of Sydney Water’s Regional Delivery Partners, giving it coverage across the North, South and West regions of Greater Sydney and access to a share of Sydney Water’s $34 billion, 10-year capital and operational program. Supported by a new Sydney office and State Manager, the expansion advances Synertec’s strategy to become a nationally recognised water industry specialist and positions it to capture growing demand for technology upgrades across Australian water utilities.

The most recent analyst rating on (AU:SOP) stock is a Sell 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 Issues Over 5.1 Million Unquoted SOPAK Warrants

Synertec Corporation Limited has notified the ASX of the issue of 5,193,344 unquoted warrants under the code SOPAK, with an issue date of 3 February 2026. The move expands Synertec’s pool of unquoted equity securities and may form part of its broader capital management or incentive arrangements, with potential implications for existing shareholders depending on how and when the warrants are exercised.

The most recent analyst rating on (AU:SOP) stock is a Sell 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 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.