Synectics (SNX) AI Stock Analysis

• Market Cap: £55.34M
• Dividend Yield: 1.51%
• Average Volume (3M): 44.19K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.67
• Revenue Growth: 13.60%
• EPS Growth: 46.74%
• Country: UK
• Employees: 290
• Sector: Industrials
• Sector Strength: 90
• Industry: Security & Protection Services
• EPS (TTM): 0.10
• Shares Outstanding: 17,794,440
• 10 Day Avg. Volume: 44,992
• 30 Day Avg. Volume: 44,187
• PEG Ratio: -0.13
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.76
• 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: 78 Outperform
• Price Target: 368.00p ▲(13.23%Upside)

Synectics demonstrates strong financial performance and positive corporate events, which significantly boost its stock score. The fair valuation and neutral technical indicators provide a balanced outlook, supporting the company's potential for stable growth in the Security & Protection Services industry.

Synectics Business Overview & Revenue Model

Company Description

Synectics plc engages in the design, integration, and support of security and surveillance systems in the United Kingdom and internationally. It operates through Systems and Security divisions. The Systems division provides integrated electronic surveillance systems based on its own proprietary technology for gaming, transport, critical infrastructure, public space, and oil & gas applications. The Security division is involved in design, integration, monitoring, and management of large-scale electronic security systems to infrastructure, transport, and public space applications. The company was formerly known as Quadnetics Group plc and changed its name to Synectics plc in July 2012. Synectics plc was incorporated in 1983 and is headquartered in Sheffield, the United Kingdom.

How the Company Makes Money

Synectics generates revenue primarily through the sale of its advanced surveillance systems and related services. The company's key revenue streams include hardware sales, software licensing, and long-term service contracts for maintenance and support. Synectics also derives income from customized solutions tailored to specific industry needs, such as integrated systems for casinos and public transport networks. Significant partnerships with industry leaders and government bodies enhance its market reach and contribute to its earnings by enabling access to large-scale projects and recurring service agreements.

Synectics Financial Statement Overview

Summary

Synectics exhibits strong financial performance with improvements in revenue, profitability, and cash flow generation. The company maintains a healthy balance sheet with minimal leverage and a solid equity base. Despite past earnings volatility, recent trends indicate a positive trajectory in financial health.

Income Statement

Synectics has shown a strong revenue growth rate of 13.60% from the previous year, along with increasing profitability. The gross profit margin is at 42.89%, and the net profit margin has improved to 5.69%. EBIT and EBITDA margins are also healthy, indicating effective cost management and operational efficiency. However, previous years showed volatility in earnings, with significant losses in 2020.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.05, indicating minimal leverage. The equity ratio is strong at 62.78%, reflecting a solid capital structure. Return on Equity stands at 7.69%, showcasing decent returns for shareholders. The company has managed to maintain a stable financial position over the recent years, although historical data shows fluctuating equity levels.

Cash Flow

Cash flow generation has improved significantly, with a free cash flow growth rate of 301.22% over the previous year. The operating cash flow to net income ratio is 2.68, demonstrating strong cash generation relative to earnings. Free cash flow to net income ratio is 2.07, indicating efficient conversion of earnings into cash. This cash flow strength supports future investment and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
55.81M	49.13M	39.12M	43.59M	44.65M
	Gross Profit
23.94M	20.01M	16.63M	15.60M	14.59M
	EBIT
4.26M	2.75M	1.10M	-862.00K	-5.29M
	EBITDA
5.65M	4.53M	3.29M	1.67M	-3.94M
	Net Income Common Stockholders
3.18M	2.16M	639.00K	-479.00K	-4.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.56M	4.60M	4.26M	4.64M	6.86M
	Total Assets
65.84M	57.62M	52.42M	54.14M	59.81M
	Total Debt
1.89M	1.94M	2.82M	2.84M	2.79M
	Net Debt
-7.67M	-2.67M	-1.44M	-1.80M	-4.07M
	Total Liabilities
24.51M	18.75M	15.42M	18.79M	22.78M
	Stockholders Equity
41.33M	38.88M	37.00M	35.34M	37.03M
Cash Flow		Free Cash Flow
6.59M	1.64M	915.00K	-1.48M	4.53M
	Operating Cash Flow
8.52M	3.02M	1.23M	-607.00K	5.75M
	Investing Cash Flow
-1.93M	-1.39M	-582.00K	-842.00K	-1.22M
	Financing Cash Flow
-1.61M	-1.17M	-1.17M	-1.02M	-1.15M

Synectics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 325.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNX, the sentiment is Positive. The current price of 325 is above the 20-day moving average (MA) of 324.63, above the 50-day MA of 316.50, and above the 200-day MA of 302.83, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SNX.

Synectics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNEO	85 Outperform	£56.68M	12.54	30.08%	―	7.52%	47.21%
SNX	78 Outperform	£55.34M	17.53	7.93%	1.51%	13.60%	46.74%
NWT	69 Neutral	£7.27M	56.21	-3.17%	―	10.37%	-57.83%
CSSG	68 Neutral	£11.84M	19.46	4.03%	2.67%	6.44%	-82.88%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
THRU	45 Neutral	£2.04M	―	-55.82%	―	-52.98%	-615.15%
PEG		£4.93M	―	-23.07%	―	―	―

Synectics Corporate Events

Synectics Reports Strong H1 2025 Trading Performance

Synectics plc reported positive trading results for the first half of 2025, with solid order intake and new business momentum aligning with market expectations for the full year. The company has secured extensions and repeat orders from existing customers and new mandates, maintaining a strong order book with significant projects scheduled for the second half of the year. Synectics will release its unaudited interim results on 8 July 2025, with a live webcast presentation for investors on 14 July 2025.

Synectics Secures $4.8 Million Contract Extension with Asian Casino

Synectics plc has secured a five-year contract extension worth at least US$4.8 million with a major casino operator in South-East Asia. This extension underscores the casino’s confidence in Synectics’ Synergy software platform, which offers scalability, flexibility, and high-standard support, reinforcing Synectics’ position as a trusted technology partner in the gaming industry.

Synectics Reinforces Leadership Commitment with Share Acquisition

Synectics plc announced that its Employee Share Acquisition Plan (ESAP) reinvested the company’s interim dividend by purchasing 944 Ordinary Shares at £3.2205 per share. This transaction resulted in key managerial personnel acquiring additional shares, reflecting confidence in the company’s performance and aligning their interests with shareholders. The move is expected to strengthen Synectics’ market position by demonstrating commitment from its leadership team.

Synectics Secures £1.1 Million Contract with Stagecoach for Innovative On-Board Hub Solution

Synectics plc has secured a £1.1 million contract with Stagecoach, the UK’s largest bus and coach operator, through its systems integration business, Ocular Integration. This contract involves piloting Ocular’s new On-Board Hub solution, designed to enhance fleet efficiency and passenger experience. Developed in collaboration with Navaho Technologies Limited, the On-Board Hub integrates multiple functionalities like automatic vehicle location and real-time passenger information, streamlining operations and improving surveillance technology deployment. The successful completion of this pilot could lead to wider deployment, strengthening Synectics’ position in the transport sector.

Synectics plc Secures Shareholder Support at AGM

Synectics plc announced that all resolutions presented at its Annual General Meeting were successfully passed, reflecting strong shareholder support. This outcome reinforces the company’s strategic direction and operational stability, potentially strengthening its position in the security and surveillance industry.

Synectics Reports Strong Trading Performance with Key Contract Wins

Synectics plc has announced that its trading is in line with expectations, supported by recent contract wins across key sectors, which bolster its solid order book. The company has secured new projects in the energy sector, particularly in floating liquefied natural gas and floating production storage, and has seen positive momentum in the leisure and hospitality sector, especially in North America and the Far East. Additionally, Synectics has made gains in critical infrastructure, public space, and transport sectors, with new projects from local authorities and police. The company continues to develop its strategic initiatives, leveraging its advanced solutions to address market opportunities.

Synectics Enhances Employee Investment with Share Acquisition

Synectics plc announced that its HMRC Approved Employee Share Acquisition Plan (ESAP) has purchased 8,043 ordinary shares at £2.975 per share for its participants, including three PDMRs, based on contributions over a six-month period. This move reflects Synectics’ commitment to employee investment and may enhance stakeholder confidence in the company’s operational strategies and market positioning.

Synectics Releases Annual Report and Announces AGM

Synectics plc has announced the posting of its Annual Report and Accounts for the year ending 30 November 2024, along with the Notice of its Annual General Meeting (AGM), which is scheduled for 7 May 2025. This announcement underscores Synectics’ commitment to transparency and stakeholder engagement, as it continues to position itself as a leader in the security and surveillance industry.

Synectics Announces Annual Report and AGM Details

Synectics plc has announced the posting of its Annual Report and Accounts for the year ended 30 November 2024, along with the Notice of its Annual General Meeting (AGM), which is scheduled for 7 May 2025. This announcement underscores Synectics’ commitment to transparency and shareholder engagement, and it may impact investor relations by providing insights into the company’s financial health and strategic direction.