Synectics (SNX) AI Stock Analysis

• Market Cap: £29.76M
• Dividend Yield: 2.09%
• Average Volume (3M): 56.45K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.40
• Revenue Growth: 21.43%
• EPS Growth: 44.70%
• Country: UK
• Employees: 290
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.06
• Shares Outstanding: 17,794,440
• 10 Day Avg. Volume: 80,643
• 30 Day Avg. Volume: 56,454
• PEG Ratio: 0.80
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.24
• 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
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): £70.50M

• Rating: 70 Outperform
• Price Target: 198.00p ▼(-12.00% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

Score is driven primarily by solid financial performance (low leverage, improved profitability, and strong recent cash generation). This is meaningfully offset by weak technicals—price well below key moving averages with bearish momentum—while reasonable valuation and a moderate dividend yield provide partial support.

Positive Factors

Balance Sheet Strength

Synectics' extremely low leverage (debt-to-equity ~0.04) provides durable financial flexibility and downside protection. It reduces refinancing risk, supports funding for project execution and aftermarket obligations, and helps absorb contract timing variability over the next several months.

Cash Generation

Strong operating and free cash flow in 2025, roughly matching reported earnings, indicates improved cash conversion. Reliable FCF supports reinvestment in software and services, funds lifecycle support for installed systems, and underpins sustainable operations and distributions over the medium term.

Improving Revenue & Margins

Revenue rebound and margin expansion through 2025 reflect improving execution and pricing power in project and aftermarket work. Higher gross and operating margins alongside revenue growth suggest the business model is recovering from prior troughs and can sustain better profitability over coming months.

Negative Factors

Earnings & Cash-Flow Volatility

The company's record of losses during 2020–2021 and noted volatility highlights the lumpy, project-driven nature of its revenues. Large contracts and long sales cycles can produce material swings in results, complicating forecasting and posing execution risk across the next 2–6 months.

Recent FCF Growth Normalization

Despite strong absolute FCF, the slight decline in 2025 FCF versus 2024 suggests normalization or timing effects after a strong prior year. If this trend persists, it could constrain reinvestment in software, aftermarket services, or dividend flexibility in the near term.

Moderate Capital Efficiency

ROE in the mid-to-high single digits signals modest capital efficiency despite equity growth. With a larger equity base, the company needs sustained margin or asset-return improvement to generate strong shareholder returns; otherwise capital deployment may remain suboptimal over time.

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 through multiple streams, primarily by providing security technology solutions and services. Their revenue model includes the sale of hardware and software products, licensing agreements for proprietary technology, and ongoing maintenance and support services for installed systems. Key revenue streams come from long-term contracts with large organizations in sectors such as gaming and public safety, where they offer comprehensive surveillance integration services. Additionally, strategic partnerships with other technology providers enhance their service offerings and market reach, contributing significantly to their earnings.

Synectics Financial Statement Overview

Summary

Strong overall fundamentals supported by a high-quality balance sheet (very low leverage) and solid recent cash generation, alongside improved profitability and revenue growth. Offsetting factors include historical earnings/cash-flow volatility and still-modest net margins.

Income Statement

Profitability and growth have improved meaningfully over the last several years. Revenue rebounded from declines in 2020–2021 to strong expansion in 2022–2025, with 2025 revenue up ~4.7% and margins trending higher (2025 gross margin ~42.8%, EBIT margin ~8.8%, net margin ~5.4%). The key weakness is the historical volatility—losses in 2020 and 2021 highlight cyclicality/execution risk, and current net margins remain modest despite the recovery.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage across the period. In 2025, total debt is ~1.65m versus equity ~43.7m (debt-to-equity ~0.04), providing strong financial flexibility and downside protection. Equity has also grown versus earlier years. The main limitation is that returns on equity, while improving (mid-to-high single digits in recent years where provided), are not yet at a level that would indicate exceptional capital efficiency.

Cash Flow

Cash generation is strong in the most recent year, with 2025 operating cash flow of ~9.24m and free cash flow of ~8.92m, broadly matching reported earnings (free cash flow running at ~0.96x net income). This is a notable step-up from weaker cash conversion in earlier years, including negative operating/free cash flow in 2021. A watch item is that 2025 free cash flow growth is slightly negative (~-3.9%) versus 2024, suggesting some near-term normalization after a strong prior year.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	68.10M	55.81M	49.13M	39.12M	36.64M
Gross Profit	29.17M	23.94M	20.01M	16.63M	15.60M
EBITDA	7.95M	5.65M	4.53M	2.58M	1.54M
Net Income	3.71M	3.18M	2.16M	1.47M	-479.00K
Balance Sheet
Total Assets	64.76M	65.84M	57.62M	52.42M	54.14M
Cash, Cash Equivalents and Short-Term Investments	14.14M	9.56M	4.60M	4.26M	4.64M
Total Debt	1.65M	1.89M	1.94M	2.82M	2.84M
Total Liabilities	21.02M	24.51M	18.75M	15.42M	18.79M
Stockholders Equity	43.74M	41.33M	38.88M	37.00M	35.34M
Cash Flow
Free Cash Flow	8.92M	6.59M	2.75M	915.00K	-1.48M
Operating Cash Flow	9.24M	8.52M	3.02M	1.23M	-607.00K
Investing Cash Flow	-2.21M	-1.93M	-1.39M	-582.00K	-842.00K
Financing Cash Flow	-2.63M	-1.61M	-1.17M	-1.17M	-1.02M

Synectics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 225.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNX, the sentiment is Negative. The current price of 225 is below the 20-day moving average (MA) of 230.97, below the 50-day MA of 225.44, and below the 200-day MA of 283.06, indicating a bearish trend. The MACD of -8.24 indicates Positive momentum. The RSI at 17.30 is Positive, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SNX.

Synectics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	70 Outperform	£29.76M	12.60	10.49%	2.09%	21.43%	44.70%
CSSG	70 Neutral	£9.98M	13.62	5.08%	3.20%	10.26%	45.18%
NWT	69 Neutral	£10.13M	-38.26	7.90%	―	3.41%	393.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.68M	-4.01	-8.06%	―	63.81%	71.62%
THRU	42 Neutral	£4.25M	-0.42	-71.37%	―	-21.55%	10.59%

Synectics Corporate Events

Synectics Director’s PCA Buys Shares, Lifting Board Insider Stake

Synectics plc disclosed that Kate Kempster, the wife and person closely associated with non-executive director Jon Kempster, purchased 10,000 ordinary shares in the company at 185 pence each on 3 March 2026. Following the transaction, this holding represents Jon Kempster’s total beneficial interest, giving him a 0.06% stake in the company’s issued share capital.

The director-related share purchase marginally increases insider ownership at Synectics and may be interpreted by the market as a signal of board-level confidence in the company’s prospects. While the stake is small in absolute terms, such transactions are often monitored by investors for indications of alignment between directors and shareholders, particularly in smaller, growth-oriented AIM-listed companies.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Boosts Profits and Cash as It Invests in Product-Led Growth Strategy

Synectics reported a 22% rise in revenue to £68.1 million and a 36% increase in adjusted EBITDA to £8.5 million for the year to 30 November 2025, supported by a record £14.1 million cash balance, no bank debt and an 11% higher total dividend. Performance was driven by strong growth in both Synectic Systems and Ocular Integration units and the successful delivery of a £12 million international gaming project.

The company has entered the execution phase of a group-wide transformation to become a more scalable, product-led and partner-enabled business, including a strengthened leadership team and an enhanced global systems integrator programme. Management expects FY26 to be a transitional investment year with lower revenue and margins due to the absence of the one-off gaming contract, but is guiding to double-digit revenue growth and higher EBITDA from FY27, with further acceleration anticipated by FY28, positioning Synectics for stronger competitive standing and improved shareholder returns.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Sets March Date for 2025 Final Results and Investor Webcast

Synectics plc has announced it will publish its audited financial results for the year ended 30 November 2025 on 3 March 2026, providing investors with a detailed view of the company’s recent performance. The timing of the release will be followed by investor engagement activity aimed at broadening communication with both existing and potential shareholders.

The company will host a live webcast presentation of the final results via the Investor Meet Company platform at 11:00 a.m. GMT on 9 March 2026, open to all current and prospective investors, who can submit questions before or during the event. This initiative underscores Synectics’ emphasis on transparency and active shareholder dialogue, which may strengthen investor relations and support its positioning in the security and surveillance market.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Wins New Contracts in Southeast Asia Transport and European Renewables

Synectics plc, a specialist in advanced security and surveillance systems, focuses on delivering integrated monitoring and control solutions for critical operations worldwide. Leveraging long-standing technical expertise and industry partnerships, the company aims to create unified platforms that add measurable value and support long-term customer success.

The company has announced a series of new contract wins that underline its growing geographic reach and sector diversification. It has secured its first transport-sector deal in Southeast Asia to enhance and maintain a national traffic monitoring camera system, and won further orders in the European renewables market to supply COEX cameras for offshore wind substation platforms, reinforcing its position in critical infrastructure security and supporting its strategic push into broader energy markets.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Reports Strong FY 2025 Performance and Strategic Transformation

Synectics plc reported a strong financial performance for FY 2025, with revenue expected to reach approximately £68 million, driven by a significant gaming contract in South-East Asia. The company is undergoing a strategic transformation to shift from a bespoke, project-led model to a scalable, product-led software platform, aiming for sustainable growth and diversification into sectors like renewables and decarbonisation. With a solid order book and cash balance, Synectics is well-positioned to continue its strategic initiatives and deliver long-term growth and stakeholder value.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Reports Strong FY 2025 Performance Amid Strategic Transformation

Synectics plc reported a strong financial performance for FY 2025, with revenue expected to reach approximately £68 million, driven by a significant gaming contract in South-East Asia. The company is undergoing a strategic transformation to a scalable, product-led software platform, aiming for higher margin growth and sustainable business scaling. The Group’s solid cash position supports its investment program and potential acquisitions, while recent contract wins in renewables and decarbonisation sectors indicate successful strategic diversification. The Board is confident in the company’s prospects as it enters FY 2026 with a robust order book and growing market momentum.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.