Synthomer (SYNT) AI Stock Analysis

• Market Cap: £103.04M
• Dividend Yield: N/A
• Average Volume (3M): 699.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.75
• Revenue Growth: -4.41%
• EPS Growth: 2.29%
• Country: UK
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 163,567,630
• 10 Day Avg. Volume: 1,314,115
• 30 Day Avg. Volume: 699,014
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £128.75
• Price Target Upside: 63.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: 60.00p ▼(-23.86% Downside)

Synthomer's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While recent corporate events show management confidence, the company's financial struggles and negative valuation metrics weigh heavily on its prospects.

Positive Factors

Adhesive Solutions progress

There is commendable positive progress in Adhesive Solutions despite a difficult backdrop in other areas.

Pricing and margins

Adhesive Solutions and Health & Protection and Performance Materials both delivered higher gross margins and EBITDA on the back of self-help and mix improvement.

Strategic progress and EBITDA growth

Synthomer achieved EBITDA growth in a challenging environment, delivering further strategic progress.

Negative Factors

Deleveraging limitations

The group's ability to deleverage is limited despite available self-help and potential disposals.

Outlook downgrade

The FY25F guidance has been downgraded, reflecting a challenging outlook.

Sales and EBITDA performance

Synthomer's results are below expectations on sales and EBITDA, with higher net debt.

Synthomer Business Overview & Revenue Model

Company Description

Synthomer (SYNT) is a global leader in the production and distribution of high-performance polymers and specialty chemicals. Operating across various sectors such as construction, textiles, coatings, and adhesives, Synthomer provides innovative solutions through its diverse range of products. The company's core offerings include latex and emulsion polymers, which are integral to numerous industrial applications and consumer products.

How the Company Makes Money

Synthomer makes money primarily through the sale of its specialized chemicals and polymers to various industries. The company's revenue model is centered around the production of latex and emulsion polymers, which are sold to manufacturers in the construction, coatings, adhesives, and textiles sectors, among others. Key revenue streams include direct sales contracts with industrial clients, long-term supply agreements, and strategic partnerships with other chemical manufacturers. Synthomer's earnings are also bolstered by its focus on innovation and development of new products tailored to meet specific customer needs, ensuring a competitive edge in the specialty chemicals market.

Synthomer Financial Statement Overview

Summary

Synthomer is facing financial challenges with declining profitability, high leverage, and negative cash flow. The income statement shows a deteriorating gross profit margin and net income losses. The balance sheet has high debt, and cash flow is under pressure with negative free cash flow.

Income Statement

Synthomer's income statement shows a challenging financial position with declining profitability. The gross profit margin has deteriorated significantly from previous years, and both EBIT and net income are in negative territory, indicating operational struggles. The revenue growth rate is relatively flat, demonstrating a lack of top-line growth. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet reflects a moderate financial position with high leverage. The debt-to-equity ratio has increased, indicating rising financial risk. Return on equity is negative due to net losses, which is concerning. However, the equity ratio remains above 40%, showing some level of financial stability. Synthomer needs to manage its liabilities and improve profitability to enhance its balance sheet strength.

Cash Flow

The cash flow statement reveals significant pressure, with negative free cash flow and operating cash flow in the latest period. The free cash flow growth rate is negative, showing a decline in cash generation. Additionally, the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income to cash. Synthomer must improve its cash flow management to ensure long-term sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	1.97B	2.38B	2.14B	1.64B
Gross Profit	337.70M	307.30M	281.00M	569.70M	336.70M
EBITDA	83.00M	117.90M	139.40M	394.40M	146.90M
Net Income	-72.60M	-67.00M	-32.50M	208.70M	3.10M
Balance Sheet
Total Assets	2.54B	2.71B	3.15B	2.55B	2.13B
Cash, Cash Equivalents and Short-Term Investments	225.80M	371.30M	227.70M	505.30M	201.80M
Total Debt	878.70M	926.30M	1.30B	663.00M	719.00M
Total Liabilities	1.43B	1.54B	2.11B	1.52B	1.50B
Stockholders Equity	1.09B	1.15B	1.02B	1.02B	615.00M
Cash Flow
Free Cash Flow	-124.10M	66.00M	45.00M	193.20M	134.90M
Operating Cash Flow	-33.50M	150.00M	135.80M	275.40M	188.70M
Investing Cash Flow	-61.70M	107.70M	-850.10M	-80.50M	-367.70M
Financing Cash Flow	-45.90M	-90.90M	414.50M	118.50M	273.20M

Synthomer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.80
• 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:SYNT, the sentiment is Negative. The current price of 78.8 is below the 20-day moving average (MA) of 92.40, below the 50-day MA of 101.33, and below the 200-day MA of 128.17, indicating a bearish trend. The MACD of -7.08 indicates Positive momentum. The RSI at 18.02 is Positive, neither overbought nor oversold. The STOCH value of 2.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SYNT.

Synthomer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELM	67 Neutral	£1.01B	―	3.37%	1.24%	-11.78%	-92.61%
JMAT	67 Neutral	£2.92B	8.24	15.96%	4.41%	-9.10%	239.75%
VCT	66 Neutral	£598.40M	20.15	6.65%	8.63%	4.75%	-3.29%
CRDA	65 Neutral	£3.69B	26.41	6.17%	3.11%	2.36%	-13.99%
ZTF	65 Neutral	£161.00M	229.17	0.60%	2.76%	15.56%	-92.94%
Sector *	58 Neutral	HK$16.52B	4.18	-4.93%	4.58%	-5.74%	-81.55%
SYNT	41 Neutral	£103.04M	―	-7.26%	―	-4.41%	2.29%

Synthomer Corporate Events

Synthomer Director Increases Stake with Share Purchase

Synthomer plc announced that Jonathan Silver, a Non-Executive Director, has purchased 59,229 ordinary shares at a price of £0.655 each, totaling £38,795, on the London Stock Exchange. This transaction reflects a vote of confidence in the company’s prospects and could positively influence stakeholder perceptions regarding Synthomer’s market position and future growth potential.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer CFO Acquires Shares, Signaling Confidence in Company

Synthomer PLC announced that Lily Liu, the company’s Chief Financial Officer, has purchased 20,000 ordinary shares at a price of £0.639 each, totaling £12,780, on the London Stock Exchange. This transaction reflects confidence in the company’s future prospects and may have implications for investor sentiment and market perception of Synthomer’s financial health.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Announces Board Changes Amid Strategic Succession Planning

Synthomer plc announced the resignation of independent Non-Executive Director Roberto Gualdoni, effective December 2025, as part of its board succession planning. The company has appointed two new independent Non-Executive Directors, Janet Ashdown and Jonathan Silver, effective July 2025, to strengthen its board. This change is part of Synthomer’s strategic efforts to enhance governance and support its long-term growth objectives.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Achieves Earnings Growth Amid Market Challenges

Synthomer reported continued earnings growth despite subdued market conditions for the first half of 2025. The company saw a 5.4% increase in EBITDA in constant currency, driven by self-help actions and strategic focus on speciality products. However, revenue decreased by 9.8% due to market volatility and tariff changes, impacting customer demand. The company completed the divestment of William Blythe and continued its strategic transformation by reducing manufacturing sites and expanding its divestment program. Synthomer remains focused on innovation and capital deployment, particularly in the Middle East and sustainable products, while navigating geopolitical and tariff-related uncertainties.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Director Purchases Shares, Signaling Confidence

Synthomer PLC announced that Janet Ashdown, a Non-Executive Director, has purchased 19,920 ordinary shares of the company at a price of £0.990029 per share, totaling £19,721.38. This transaction, conducted on the London Stock Exchange, signifies a potential vote of confidence in the company’s future prospects and could positively influence stakeholder perceptions.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Extends Covenant Relaxation Amid Economic Challenges

Synthomer plc has announced an extension of its covenant relaxation period with its banking syndicate through the end of 2026, due to weaker macroeconomic conditions and geopolitical uncertainties. This extension provides Synthomer with additional financial flexibility to navigate these challenges and positions the company for a recovery in earnings in the medium term, potentially impacting its operational stability and market positioning positively.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Enhances Board with New Non-Executive Directors

Synthomer plc has announced the appointment of Janet Ashdown and Jonathan Silver as independent non-executive directors, effective 1 July 2025. Janet Ashdown brings extensive experience in the process and chemicals industries, while Jonathan Silver offers significant expertise in finance and accounting. These appointments are expected to enhance the board’s capabilities in sustainability, finance, and governance, potentially strengthening Synthomer’s industry positioning and operational effectiveness.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £265.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer PLC Announces Change in Major Shareholdings

Synthomer PLC has announced a change in its major holdings, with Lombard Odier Asset Management (Europe) Limited reducing its voting rights from 5.37% to 4.99%. This adjustment in holdings could impact Synthomer’s shareholder dynamics and influence its strategic decisions, reflecting a shift in stakeholder engagement.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Completes Divestment of William Blythe to Strengthen Financial Position

Synthomer plc has completed the divestment of its subsidiary, William Blythe Limited, for £30 million, with net cash proceeds of £25 million used to reduce the Group’s debt. This divestment is part of Synthomer’s strategic efforts to streamline operations and focus on its core business areas, potentially enhancing its market position and financial stability.

The most recent analyst rating on (GB:SYNT) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Divests William Blythe to Focus on Specialty Chemicals

Synthomer plc announced the divestment of its inorganic chemistry business, William Blythe Limited, to its management team and H2 Equity Partners for £30 million. This strategic move is part of Synthomer’s efforts to streamline operations and focus on high-growth specialty chemicals markets, reducing complexity and enhancing its leadership in these areas. The divestment is expected to complete by the end of May 2025, with proceeds aimed at reducing the Group’s net debt, marking a significant step in Synthomer’s strategic realignment.