Synthomer (SYNT) AI Stock Analysis

• Market Cap: £185.80M
• Dividend Yield: N/A
• Average Volume (3M): 529.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: 0.81%
• EPS Growth: 15.63%
• Country: UK
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 163,567,630
• 10 Day Avg. Volume: 728,078
• 30 Day Avg. Volume: 529,279
• PEG Ratio: 0.18
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.97
• 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: £130.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: 112.00p ▲(2.56%Upside)

The overall score is influenced predominantly by financial challenges, as reflected in the financial performance score. Corporate events provide positive momentum by reducing debt and focusing on core business strengths. Technical analysis and valuation indicate moderate potential, without providing strong bullish signals.

Positive Factors

Earnings Progress

The vibes around FY25F do appear to be more positive, with confident commentary around earnings progress.

Margin 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 Divestments

Synthomer expects to see another two divestments generating proceeds of approximately £70m.

Negative Factors

Deleveraging Challenges

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

Demand Concerns

The demand backdrop is likely to remain lacklustre, which likely limits the extent of deleveraging that can be achieved.

Market Conditions

Weaker CCS markets are unhelpful, reducing the likelihood of any recovery this year.

Synthomer Business Overview & Revenue Model

Company Description

Synthomer (SYNT) is a global leader in the production of water-based polymers, serving various sectors including adhesives, coatings, textiles, healthcare, and construction. The company specializes in the development and manufacture of high-performance polymers that are used to enhance the performance of a wide range of products and applications.

How the Company Makes Money

Synthomer makes money primarily through the sale of its extensive range of polymer products. These products are sold to manufacturers in various industries, where they are used as raw materials to improve product performance, durability, and sustainability. The company's key revenue streams include sales of latex products, adhesives, and specialty polymers. Synthomer also engages in strategic partnerships and collaborations with other companies to expand its market reach and innovate its product offerings, which contributes to its earnings. Additionally, the company invests in research and development to continuously improve its product portfolio and maintain competitive advantage in the market.

Synthomer Financial Statement Overview

Summary

Synthomer is experiencing financial challenges with negative profitability, high leverage, and pressure on cash flow. The income statement shows declining gross profit margins and negative net income, while the balance sheet is marked by a high debt-to-equity ratio. Cash flow issues are evident with negative free cash flow, indicating inefficiencies in cash management.

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
	EBIT
-24.10M	-35.40M	114.30M	400.80M	156.50M
	EBITDA
83.00M	117.90M	139.40M	394.40M	146.90M
	Net Income Common Stockholders
-72.60M	-67.00M	-32.50M	208.70M	3.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
225.80M	371.30M	227.70M	505.30M	201.80M
	Total Assets
2.54B	2.71B	3.15B	2.55B	2.13B
	Total Debt
878.70M	926.30M	1.30B	663.00M	719.00M
	Net Debt
652.90M	555.00M	1.07B	157.70M	517.20M
	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: 109.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 109.2 is below the 20-day moving average (MA) of 110.22, above the 50-day MA of 99.05, and below the 200-day MA of 146.42, indicating a neutral trend. The MACD of 3.93 indicates Positive momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMAT	68 Neutral	£2.86B	8.07	15.96%	6.43%	-15.51%	200.70%
CRDA	67 Neutral	£4.24B	26.77	6.84%	4.14%	-3.92%	-7.30%
ZTF	67 Neutral	£146.36M	14.46	-2.45%	1.70%	16.39%	-129.71%
VCT	66 Neutral	£670.59M	22.58	6.65%	7.73%	4.75%	-3.29%
ELM	66 Neutral	£908.17M	―	-5.93%	2.25%	0.71%	-274.39%
SYNT	55 Neutral	£185.80M	―	-6.25%	―	0.81%	15.63%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%

Synthomer Corporate Events

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.

Synthomer PLC Successfully Passes All Resolutions at AGM

Synthomer PLC announced that all resolutions proposed at its Annual General Meeting were successfully passed. This includes the approval of financial statements, director elections, and auditor appointments, indicating strong shareholder support and potentially enhancing the company’s governance and operational strategies.

Synthomer Reports Strong Q1 2025 Performance Amid Market Challenges

Synthomer plc reported a strong first quarter in 2025, with increased EBITDA and margins compared to the previous year, driven by self-help initiatives and strategic transformation. Despite challenges in the USA and energy solutions markets, the company achieved revenue growth in its Adhesive Solutions and Health & Protection and Performance Materials divisions. Synthomer’s ‘in region for region’ manufacturing strategy has helped mitigate the impact of tariffs, and new investments in the USA and Middle East are contributing positively to profits and cash flow. The company remains focused on cost-efficiency and cash generation, with expectations of further earnings progress in 2025 despite geopolitical uncertainties.

Synthomer PLC Announces Change in Major Holdings

Synthomer PLC, a UK-based company, has announced a change in its major holdings with Janus Henderson Group PLC reducing its voting rights from 5.038376% to 4.918311%. This adjustment in holdings, effective as of April 10, 2025, reflects a minor shift in the company’s shareholder structure, potentially impacting its governance and decision-making processes.

Synthomer CEO’s Bonus Deferred into Shares

Synthomer plc announced the deferral of part of its 2024 annual cash bonus for CEO Michael Willome into shares, marking the final tranche of this transaction. This move, involving 47,000 shares at a price of £1.20582 each, reflects the company’s strategic approach to align executive compensation with shareholder interests, potentially impacting its financial management and market perception.

Synthomer Chair Increases Stake with Share Purchase

Synthomer PLC announced that its Chair, Peter Hill, has purchased 50,000 ordinary shares of the company at a price of £1.16 per share, totaling £58,000. This transaction, conducted on the London Stock Exchange, signifies confidence in the company’s future prospects and may positively influence stakeholder perceptions.

Synthomer Grants Performance-Based Share Options to CFO

Synthomer plc announced that its Chief Financial Officer, Lily Liu, has been granted nil cost options under the Synthomer Performance Share Plan, subject to performance conditions. This transaction, involving 826,418 ordinary shares, reflects the company’s commitment to aligning executive incentives with performance, potentially impacting stakeholder confidence and the company’s strategic objectives.

Synthomer Releases 2024 Annual Report and AGM Notice

Synthomer plc has published its 2024 annual report and accounts, along with the notice for the 2025 annual general meeting, which will be held on May 1, 2025. These documents have been submitted to the Financial Conduct Authority and are available for inspection through the National Storage Mechanism and the company’s website, reflecting compliance with regulatory requirements and ensuring transparency for stakeholders.

Synthomer PLC Announces Change in Major Shareholder Holdings

Synthomer PLC has announced a change in its major holdings, with Artemis Investment Management LLP now holding 5.436171% of voting rights, up from a previous 5.034027%. This shift in voting rights indicates a strategic move by Artemis, potentially impacting Synthomer’s future decisions and stakeholder interests.