Synthomer (SYNT) AI Stock Analysis

• Market Cap: £97.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.88
• Revenue Growth: -4.41%
• EPS Growth: 2.29%
• Country: UK
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 163,567,630
• 10 Day Avg. Volume: 933,327
• 30 Day Avg. Volume: 1,097,050
• PEG Ratio: 0.08
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -2.12
• 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: £74.67
• Price Target Upside: 21.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 62.00p ▲(1.14% Upside)

Synthomer's overall stock score is primarily impacted by its weak financial performance and valuation concerns. The company's profitability and cash flow issues, combined with a negative P/E ratio, weigh heavily on its score. Technical analysis provides some mixed signals, but the overall outlook remains cautious due to financial and valuation challenges.

Positive Factors

Innovative Product Offerings

Synthomer's emphasis on innovative and high-performance products positions it well to meet evolving customer needs, supporting long-term growth.

Strategic Partnerships

Strategic partnerships enhance distribution and market reach, providing a durable competitive advantage and supporting revenue stability.

Focus on Sustainability

A focus on sustainability aligns with global trends, potentially increasing demand for Synthomer's products and improving its market position.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting Synthomer's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests inefficiencies in operations and challenges in sustaining business activities without external financing.

Declining Profitability

Declining profitability indicates operational struggles and could hinder Synthomer's ability to reinvest in the business for future growth.

Synthomer Business Overview & Revenue Model

Company Description

Synthomer 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 Money

Synthomer generates revenue through the sale of its wide range of polymer products, which are sold primarily to industrial customers in various sectors including construction, textiles, and coatings. The company's revenue model is largely based on volume sales, with a focus on high-margin specialty products that command premium prices. Key revenue streams include the production of water-based emulsions and other specialty polymers, which are used in applications such as adhesives and paints. Additionally, Synthomer benefits from strategic partnerships with key players in its target markets, facilitating distribution and expanding its market reach. The company also invests in research and development to innovate new products that meet evolving customer needs, thereby enhancing its competitive position and driving sales growth.

Synthomer Financial Statement Overview

Summary

Synthomer faces financial challenges across income, balance sheet, and cash flow verticals. The company is struggling with profitability and cash generation, while maintaining a high debt level. Addressing these issues will be crucial for improving its financial stability and growth prospects in the future.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.99B	1.97B	2.33B	2.14B	1.64B
Gross Profit	336.90M	337.70M	307.30M	281.00M	569.70M	336.70M
EBITDA	70.30M	83.00M	113.40M	139.40M	394.40M	254.50M
Net Income	-83.60M	-72.60M	-67.00M	-32.50M	208.70M	3.10M
Balance Sheet
Total Assets	2.45B	2.54B	2.71B	3.15B	2.55B	2.13B
Cash, Cash Equivalents and Short-Term Investments	266.40M	225.80M	371.30M	227.70M	505.30M	201.80M
Total Debt	960.60M	878.70M	926.30M	1.30B	663.00M	719.00M
Total Liabilities	1.46B	1.43B	1.54B	2.11B	1.52B	1.50B
Stockholders Equity	983.70M	1.09B	1.15B	1.02B	1.02B	615.00M
Cash Flow
Free Cash Flow	-82.70M	-124.10M	66.00M	45.00M	193.20M	134.90M
Operating Cash Flow	14.90M	-33.50M	150.00M	135.80M	275.40M	188.70M
Investing Cash Flow	-70.60M	-61.70M	107.70M	-850.10M	-78.60M	-365.80M
Financing Cash Flow	44.80M	-45.90M	-90.90M	414.50M	118.50M	273.20M

Synthomer Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYNT, the sentiment is Neutral. The current price of 61.3 is above the 20-day moving average (MA) of 52.75, above the 50-day MA of 58.78, and below the 200-day MA of 86.55, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SYNT.

Synthomer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMAT	72 Outperform	£3.37B	-26.12	-5.62%	3.87%	-4.60%	-126.46%
CRDA	70 Outperform	£3.91B	27.92	6.17%	3.53%	2.36%	-13.99%
VCT	69 Neutral	£555.78M	18.71	6.22%	9.54%	4.75%	-3.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ELM	57 Neutral	£918.66M	-16.22	3.37%	1.37%	-11.78%	-92.61%
ZTF	56 Neutral	£186.37M	265.28	0.60%	1.78%	15.56%	-92.94%
SYNT	46 Neutral	£97.64M	-1.17	-7.26%	―	-4.41%	2.29%

Synthomer Corporate Events

Synthomer CEO Invests in Company Shares

Synthomer PLC announced that its CEO, Michael Willome, has purchased 63,000 ordinary shares of the company at a price of £0.4918 per share, totaling £30,983.40. This transaction, conducted on the London Stock Exchange, signifies a potential vote of confidence in the company’s future prospects and may impact stakeholder perception positively.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £54.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Reports Resilient Q3 Performance Amid Market Challenges

Synthomer plc reported a resilient performance in Q3 2025 despite a challenging market environment, driven by its Adhesive Solutions division and strategic self-help initiatives. The company is focusing on cost efficiency, strategic transformation, and a broadened divestment program to strengthen its financial position and mitigate the impact of global trade tensions. Synthomer expects its 2025 EBITDA to be similar to 2024, with anticipated progress in earnings and cash generation in 2026 due to ongoing strategic actions and investments.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £54.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Appoints Peel Hunt as Joint Corporate Broker

Synthomer plc has appointed Peel Hunt LLP as a joint corporate broker alongside its existing broker, J.P. Morgan Cazenove. This strategic move aims to bolster Synthomer’s market positioning and enhance its investor relations efforts, potentially impacting its operations and stakeholder engagement positively.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £1.12 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.