Synthomer (SYNT) AI Stock Analysis

• Market Cap: £87.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• 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: £76.00
• Price Target Upside: 42.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 59.00p ▲(10.28% Upside)

Synthomer's overall stock score reflects significant financial challenges, with negative profitability and high leverage being major concerns. Technical analysis provides mixed signals, with short-term bullish momentum but longer-term bearish trends. Valuation is weak due to a negative P/E ratio. However, positive corporate events, such as insider buying and strategic appointments, offer some optimism for future prospects.

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's financial performance is under pressure with declining profitability, negative net income, and high leverage. The income statement, balance sheet, and cash flow statement all indicate significant challenges, including negative free cash flow and high debt levels.

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: Negative
• Last Price: 53.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 53.5 is below the 20-day moving average (MA) of 59.53, below the 50-day MA of 59.16, and below the 200-day MA of 75.15, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.63 is Positive, 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
VCT	70 Outperform	£570.88M	20.53	6.22%	9.48%	0.58%	61.58%
CRDA	65 Neutral	£3.81B	27.22	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£918.27M	-16.32	3.37%	1.34%	-11.78%	-92.61%
ESNT	63 Neutral	£287.77M	31.17	3.48%	2.44%	-4.71%	86.21%
ZTF	62 Neutral	£201.98M	287.50	0.60%	2.00%	15.56%	-92.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SYNT	51 Neutral	£87.50M	-1.05	-7.26%	―	-4.41%	2.29%

Synthomer Corporate Events

Synthomer Lifts Margins and Cash Flow Despite Softer Demand and Tariff Hit

Synthomer expects 2025 revenue of about £1.74bn and EBITDA of £135m–£138m for its continuing operations, slightly down on 2024 but in line with expectations, as cost-cutting and a shift toward higher-margin speciality solutions helped offset weaker demand following global tariff changes. The group generated positive free cash flow, reduced net debt to around £575m, maintained covenant leverage comfortably within limits, and reported margin gains across its portfolio, supported by progress in Adhesive Solutions, improving medical glove volumes, and ongoing divestments to deleverage and simplify the business, positioning it for earnings growth in 2026 even without a strong market recovery.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £52.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Announces Receivables Purchasing Agreement to Enhance Financial Flexibility

Synthomer has entered a trade receivables purchasing arrangement with Rainbow State Limited, a subsidiary of its major shareholder KLK Group. This temporary arrangement will provide Synthomer with short-term financial flexibility and ensure sufficient banking covenant headroom. Under this agreement, KLK will purchase approximately £50 million of trade receivables, aligning with the firm’s prudent funding strategy, and the terms have been evaluated as fair by an independent advisor. This move highlights Synthomer’s proactive financial management and collaboration with key stakeholders to maintain stability during the year-end.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £59.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

Synthomer Announces Board Changes to Strengthen Governance

Synthomer plc announced changes to its Board, with Ian Tyler and Roberto Gualdoni stepping down as independent Non-Executive Directors. Janet Ashdown will succeed Ian as Senior Independent Director, and Jonathan Silver will become Chair of the Audit Committee. These changes are part of Synthomer’s ongoing efforts to align with the UK Corporate Governance Code and enhance its leadership structure, potentially impacting its governance and strategic direction.

The most recent analyst rating on (GB:SYNT) stock is a Hold with a £59.00 price target. To see the full list of analyst forecasts on Synthomer stock, see the GB:SYNT Stock Forecast page.

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.