tiprankstipranks
Trending News
More News >
Synthomer PLC (GB:SYNT)
LSE:SYNT
Advertisement

Synthomer (SYNT) AI Stock Analysis

Compare
83 Followers

Top Page

GB:SYNT

Synthomer

(LSE:SYNT)

Rating:45Neutral
Price Target:
63.00p
▼(-4.55% Downside)
Synthomer's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. However, insider buying and strategic corporate events provide some positive sentiment. The company needs to address its financial and operational challenges to improve its stock performance.
Positive Factors
Adhesive Solutions Performance
There is commendable positive progress in Adhesive Solutions despite a difficult backdrop in other areas.
Self-Help and Mix Improvement
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
Synthomer achieved EBITDA growth in a challenging environment, delivering further strategic progress.
Negative Factors
Deleveraging Challenges
The deleveraging story is not yet playing out.
Earnings Recovery
Earnings recovery remains stagnant, and it is difficult to see when this turns.
Market Challenges
Synthomer continues to operate in particularly challenging end markets.

Synthomer (SYNT) vs. iShares MSCI United Kingdom ETF (EWC)

Synthomer Business Overview & Revenue Model

Company DescriptionSynthomer plc operates as a specialty chemicals company. It operates through four segments: Performance Elastomers, Functional Solutions, Industrial Specialities, and Acrylate Monomers. The company offers pressure sensitive adhesives, acrylic polymers, acrylic dispersions, saturants, release coatings, and other adhesives; water-based carboxylated styrene butadiene rubber, redispersible powder, flooring adhesive, and additives for construction applications; and impregnation binders, styrene butadiene copolymers, dispersions, polymer binders, and butadiene-based binders for textiles applications. It also provides binders for various carpets; synthetic binders for graphic, packaging, and specialty paper coating applications; paper coating additives and plastic pigments; binders, dispersions, water-based and solvent-borne resins, and other products for various coating applications; foamed bedding products and footwear; elastomeric modifiers for thermoplastics and friction components; reinforcement resins for rubber compounds; and latex for tire cord. In addition, the company offers compounds and aqueous curing pastes for carpets and other applications; acrylic monomers for enhancing the performance characteristics of polymer formulations; antioxidant products; latices for medical examination, clean room, food handling, chemotherapy drug handling, chemical laboratory, and medical device and balloon applications; and nitrile latex, which enhance performance of industrial and fabric-supported gloves. Further, it provides liquid polybutadienes, polyvinyl alcohol suspending agents, polyvinyl acetates, thermosetting resins, butyl ethyl propanediol, and inorganic materials for various industrial applications; and coalescing agents for enhancing the properties of coatings. The company was formerly known as Yule Catto & Co. plc and changed its name to Synthomer plc in 2012. Synthomer plc was founded in 1863 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySynthomer generates revenue primarily through the sale of its specialty chemical products, particularly aqueous polymers, which are used in a wide range of applications across diverse industries. The company operates on a B2B revenue model, supplying its products to manufacturers in sectors like construction, automotive, and consumer goods. Key revenue streams include sales of adhesives, paints, coatings, and construction materials. Additionally, Synthomer's strategic partnerships with various industrial players enhance its market reach and product offerings. The company's focus on innovation, alongside its commitment to sustainability, positions it favorably in the market, allowing it to charge premium prices for its specialized products while also reducing costs through efficient manufacturing processes. Global economic trends, regulatory changes, and advances in technology also play significant roles in influencing Synthomer's financial performance.

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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.99B1.97B2.38B2.14B1.64B
Gross Profit337.70M307.30M281.00M569.70M336.70M
EBITDA83.00M117.90M139.40M394.40M146.90M
Net Income-72.60M-67.00M-32.50M208.70M3.10M
Balance Sheet
Total Assets2.54B2.71B3.15B2.55B2.13B
Cash, Cash Equivalents and Short-Term Investments225.80M371.30M227.70M505.30M201.80M
Total Debt878.70M926.30M1.30B663.00M719.00M
Total Liabilities1.43B1.54B2.11B1.52B1.50B
Stockholders Equity1.09B1.15B1.02B1.02B615.00M
Cash Flow
Free Cash Flow-124.10M66.00M45.00M193.20M134.90M
Operating Cash Flow-33.50M150.00M135.80M275.40M188.70M
Investing Cash Flow-61.70M107.70M-850.10M-80.50M-367.70M
Financing Cash Flow-45.90M-90.90M414.50M118.50M273.20M

Synthomer Technical Analysis

Technical Analysis Sentiment
Negative
Last Price66.00
Price Trends
50DMA
87.14
Negative
100DMA
92.79
Negative
200DMA
119.53
Negative
Market Momentum
MACD
-6.91
Negative
RSI
32.20
Neutral
STOCH
37.93
Neutral
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 66 is below the 20-day moving average (MA) of 67.76, below the 50-day MA of 87.14, and below the 200-day MA of 119.53, indicating a bearish trend. The MACD of -6.91 indicates Negative momentum. The RSI at 32.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SYNT.

Synthomer Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£3.18B9.0015.96%4.06%-9.10%239.75%
67
Neutral
£619.27M20.676.65%8.44%4.75%-3.29%
66
Neutral
£212.71M291.670.60%1.72%15.56%-92.94%
64
Neutral
£3.56B25.486.17%3.21%2.36%-13.99%
64
Neutral
£957.89M3.37%1.35%-11.78%-92.61%
61
Neutral
$10.31B6.160.76%2.94%3.30%-36.34%
45
Neutral
£107.95M-7.26%-4.41%2.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SYNT
Synthomer
66.00
-171.50
-72.21%
GB:CRDA
Croda International
2,551.00
-1,383.25
-35.16%
GB:ELM
Elementis
163.00
2.92
1.82%
GB:JMAT
Johnson Matthey
1,923.00
370.46
23.86%
GB:VCT
Victrex
712.00
-250.76
-26.05%
GB:ZTF
Zotefoams
419.00
-39.79
-8.67%

Synthomer Corporate Events

Other
Synthomer Director Invests in Company Shares
Positive
Aug 11, 2025

Synthomer PLC announced that Uwe Halder, a Non-Executive Director, has purchased 25,000 ordinary shares of the company at a price of £0.637 per share, totaling £15,925. This transaction, conducted on the London Stock Exchange, reflects a significant investment by a key member of the company’s board, potentially indicating confidence in the company’s future performance and 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.

Other
Synthomer Director Increases Stake with Share Purchase
Positive
Aug 6, 2025

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.

Other
Synthomer CFO Acquires Shares, Signaling Confidence in Company
Positive
Aug 5, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Synthomer Announces Board Changes Amid Strategic Succession Planning
Neutral
Aug 5, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Synthomer Achieves Earnings Growth Amid Market Challenges
Neutral
Aug 5, 2025

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.

Other
Synthomer Director Purchases Shares, Signaling Confidence
Positive
Jul 4, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Synthomer Extends Covenant Relaxation Amid Economic Challenges
Positive
Jul 1, 2025

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.

Executive/Board Changes
Synthomer Enhances Board with New Non-Executive Directors
Positive
Jun 30, 2025

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.

Business Operations and Strategy
Synthomer PLC Announces Change in Major Shareholdings
Neutral
Jun 27, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Synthomer Completes Divestment of William Blythe to Strengthen Financial Position
Positive
Jun 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025