Synthomer (SYNT) AI Stock Analysis

• Market Cap: £162.41M
• Dividend Yield: N/A
• Average Volume (3M): 559.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• Revenue Growth: 0.81%
• EPS Growth: 15.63%
• Country: UK
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 75
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 163,567,630
• 10 Day Avg. Volume: 409,508
• 30 Day Avg. Volume: 559,162
• 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: £128.40
• Price Target Upside: 30.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: 98.00p ▼(-0.10%Downside)

Synthomer faces significant financial and technical challenges, reflected in low scores for financial performance and technical analysis. However, positive corporate events, including strategic divestments and board enhancements, provide some optimism for future recovery. The overall score reflects a cautious outlook, with significant risks due to current financial instability.

Positive Factors

Gross Margins and EBITDA

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

Market Conditions

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

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 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 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
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: 98.10
• 50DMA: Negative
• 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 98.1 is below the 20-day moving average (MA) of 103.74, below the 50-day MA of 104.46, and below the 200-day MA of 137.05, indicating a bearish trend. The MACD of -3.06 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 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	75 Outperform	£3.14B	8.85	15.96%	5.90%	-9.10%	239.75%
Sector *	70 Outperform	¥175.46B	11.07	6.29%	3.46%	3.91%	3.49%
ELM	66 Neutral	£990.14M	―	-5.93%	1.49%	0.71%	-274.39%
VCT	66 Neutral	£633.19M	21.32	6.65%	8.18%	4.75%	-3.29%
ZTF	64 Neutral	£153.68M	14.46	-2.45%	1.62%	16.39%	-129.71%
CRDA	63 Neutral	£4.27B	26.95	6.84%	3.06%	-3.92%	-7.30%
SYNT	52 Neutral	£162.41M	―	-6.25%	―	0.81%	15.63%

Synthomer Corporate Events

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.

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.