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Synthomer PLC (GB:SYNT)
LSE:SYNT

Synthomer (SYNT) AI Stock Analysis

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GB

Synthomer

(LSE:SYNT)

45Neutral
Synthomer's overall stock score is low due to significant financial and technical challenges. The company faces profitability and cash flow issues, reflected in its financial statements and negative market momentum. While recent corporate actions show management confidence, they are not enough to counterbalance the prevailing negative factors impacting the company's financial and market position.
Positive Factors
Earnings
Synthomer achieved EBITDA growth in a challenging environment, delivering further strategic progress.
Financial Performance
Adhesive Solutions and Health & Protection and Performance Materials both delivered higher gross margins and EBITDA on the back of self-help and mix improvement.
Negative Factors
Debt Levels
Net debt is modestly higher than consensus.
Market Conditions
Weaker CCS markets are unhelpful, reducing the likelihood of any recovery this year.

Synthomer (SYNT) vs. S&P 500 (SPY)

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 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
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
1.97B2.38B2.14B1.64B1.46B
Gross Profit
307.30M281.00M569.70M336.70M213.00M
EBIT
-35.40M114.30M400.80M156.50M117.40M
EBITDA
117.90M139.40M394.40M146.90M168.20M
Net Income Common Stockholders
-67.00M-32.50M208.70M3.10M84.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
371.30M227.70M505.30M201.80M103.60M
Total Assets
2.71B3.15B2.55B2.13B1.26B
Total Debt
926.30M1.30B663.00M719.00M124.80M
Net Debt
555.00M1.07B157.70M517.20M21.20M
Total Liabilities
1.54B2.11B1.52B1.50B588.90M
Stockholders Equity
1.15B1.02B1.02B615.00M649.40M
Cash FlowFree Cash Flow
66.00M45.00M193.20M134.90M84.40M
Operating Cash Flow
150.00M135.80M275.40M188.70M153.50M
Investing Cash Flow
107.70M-850.10M-80.50M-367.70M-68.80M
Financing Cash Flow
-90.90M414.50M118.50M273.20M-60.00M

Synthomer Technical Analysis

Technical Analysis Sentiment
Negative
Last Price82.30
Price Trends
50DMA
111.47
Negative
100DMA
131.25
Negative
200DMA
170.72
Negative
Market Momentum
MACD
-8.44
Negative
RSI
35.02
Neutral
STOCH
62.81
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 82.3 is below the 20-day moving average (MA) of 87.89, below the 50-day MA of 111.47, and below the 200-day MA of 170.72, indicating a bearish trend. The MACD of -8.44 indicates Negative momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 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 (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
£4.12B25.996.84%3.69%-3.92%-7.30%
GBBOY
64
Neutral
£864.68M45.302.74%4.81%-5.66%-76.42%
GBVCT
63
Neutral
£742.78M43.173.58%7.17%-5.21%-72.13%
GBCWR
54
Neutral
£112.40M-16.93%132.44%47.77%
49
Neutral
$1.93B-1.47-21.02%3.74%0.80%-29.57%
45
Neutral
£134.61M-6.25%0.81%15.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SYNT
Synthomer
93.70
-169.80
-64.44%
GB:BOY
Bodycote
487.00
-177.54
-26.72%
GB:CWR
Ceres Power Holdings
58.50
-119.80
-67.19%
GB:CRDA
Croda International
3,000.00
-1,510.06
-33.48%
GB:DCTA
Directa Plus
7.25
-11.45
-61.23%
GB:VCT
Victrex
854.00
-346.07
-28.84%

Synthomer Corporate Events

Business Operations and StrategyFinancial Disclosures
Synthomer Reports Strong Q1 2025 Performance Amid Market Challenges
Positive
May 1, 2025

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.

Spark’s Take on GB:SYNT Stock

According to Spark, TipRanks’ AI Analyst, GB:SYNT is a Neutral.

Synthomer’s overall stock score is low, primarily due to challenging financial performance and negative technical indicators. The company’s financial struggles, particularly around profitability and cash flow, weigh heavily on the score. Although recent corporate actions suggest management confidence, these are overshadowed by broader financial and market challenges. The stock’s valuation is also unattractive, reflecting the company’s current difficulties.

To see Spark’s full report on GB:SYNT stock, click here.

Other
Synthomer PLC Announces Change in Major Holdings
Neutral
Apr 15, 2025

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.

Spark’s Take on GB:SYNT Stock

According to Spark, TipRanks’ AI Analyst, GB:SYNT is a Neutral.

Synthomer’s stock is challenged by financial and technical weaknesses, with a negative P/E ratio and lack of dividend yield further impacting valuation. However, the positive corporate events suggest management’s confidence in future prospects, providing a partial counterbalance. Overall, the stock’s score reflects significant room for improvement in financial health and market performance.

To see Spark’s full report on GB:SYNT stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Synthomer CEO’s Bonus Deferred into Shares
Neutral
Mar 28, 2025

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.

Other
Synthomer Chair Increases Stake with Share Purchase
Positive
Mar 27, 2025

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.

Executive/Board Changes
Synthomer Grants Performance-Based Share Options to CFO
Neutral
Mar 25, 2025

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.

Shareholder MeetingsRegulatory Filings and Compliance
Synthomer Releases 2024 Annual Report and AGM Notice
Neutral
Mar 25, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Synthomer PLC Announces Change in Major Shareholder Holdings
Neutral
Mar 24, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Synthomer CFO Defers Bonus into Company Shares
Positive
Mar 17, 2025

Synthomer PLC announced that its Chief Financial Officer, Lily Liu, has opted to defer a portion of her 2024 annual cash bonus into shares of the company. This transaction, conducted on the London Stock Exchange, involves 54,990 ordinary shares at a price of £1.1784 each, totaling £64,800.22. This move reflects a strategic decision by the company’s management, potentially indicating confidence in the company’s future performance and aligning executive interests with shareholder value.

Executive/Board ChangesBusiness Operations and Strategy
Synthomer CEO Defers Bonus into Shares, Aligning Interests with Shareholders
Positive
Mar 17, 2025

Synthomer PLC announced that its CEO, Michael Willome, has deferred part of his 2024 annual cash bonus into shares, purchasing 70,000 ordinary shares at a price of £1.184954 each, totaling £82,946.78. This transaction, conducted on the London Stock Exchange, reflects a strategic move that aligns the CEO’s interests with those of shareholders, potentially impacting the company’s market perception and stakeholder confidence.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Synthomer Reports Robust 2024 Financial Progress Amid Strategic Repositioning
Positive
Mar 11, 2025

Synthomer plc reported robust financial progress for the year ending December 2024, driven by strategic repositioning and self-help initiatives. The company achieved a 5.1% increase in revenue at constant currency, with significant improvements in EBITDA and underlying operating profit. Despite mixed end-market demand trends, Synthomer’s Adhesive Solutions and Health & Protection divisions showed strong performance, while Coatings & Construction Solutions faced challenges. The company maintained a stable financial position, completing a €350m bond refinancing and reducing its manufacturing sites. Looking ahead, Synthomer expects further financial progress in 2025 through continued strategic delivery and self-help actions.

M&A TransactionsRegulatory Filings and Compliance
Synthomer PLC Announces Change in Voting Rights
Neutral
Feb 13, 2025

Synthomer PLC has announced a change in its voting rights following an acquisition or disposal by Artemis Investment Management LLP. As of February 11, 2025, Artemis holds 5.034% of voting rights in Synthomer, highlighting a significant stake in the company. This change in holdings may impact Synthomer’s decision-making processes and potentially influence its strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.