Synergy CHC (SNYR) AI Stock Analysis

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Synergy CHC

(NASDAQ:SNYR)

47Neutral

Synergy CHC presents a mixed outlook. While the stock is undervalued based on its P/E ratio, significant financial risks due to high leverage and liquidity issues are concerning. The company's bearish technical indicators and lack of a clear positive earnings call narrative further weigh down the score. On the positive side, corporate events such as leadership changes and strategic partnerships suggest potential future growth.

Synergy CHC (SNYR) vs. S&P 500 (SPY)

Market Cap

$18.64M

Dividend YieldN/A

Average Volume (3M)2.24M

Price to Earnings (P/E)1.2

Beta (1Y)0.13

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees21

SectorConsumer Defensive

Sector Strength77

IndustryMedical - Distribution

Share Statistics

EPS (TTM)0.01

Shares Outstanding8,752,178

10 Day Avg. Volume132,779

30 Day Avg. Volume2,240,849

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap3.45

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.72

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$10.00

Price Target Upside369.48% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Synergy CHC Business Overview & Revenue Model

Company DescriptionSynergy CHC Corp. provides consumer health care, beauty, and lifestyle products in the United States, Canada, and the United Kingdom. It offers brain health nutritional supplements under the FOCUSfactor brand name; lifestyle products and accessories, including tea, shakes, lollipops, supplements, apparel, and exercise accessories under the Flat Tummy brand name; anti-aging skincare products, such as serums and creams for exfoliating, skin repair, and rehydration, as well as hand soaps and hand sanitizers under the Hand MD brand name. The company sells its products through retailers and television advertising campaigns, as well as skincare products through online. The company was formerly known as Synergy Strips Corp. and changed its name to Synergy CHC Corp. in August 2015. Synergy CHC Corp. was incorporated in 2010 and is based in Westbrook, Maine.

How the Company Makes MoneySynergy CHC generates revenue primarily through the sale of its health and wellness products. The company markets and distributes these products through various retail channels, including online platforms and brick-and-mortar stores. Key revenue streams include direct sales to consumers and partnerships with retailers who stock and sell Synergy CHC's product lines. The company's earnings are significantly influenced by their marketing strategies, product innovation, and ability to establish strong brand recognition in the competitive consumer health care market.

Synergy CHC Financial Statement Overview

Summary

Synergy CHC's financial performance is concerning due to high leverage and negative equity, indicating financial instability. Despite revenue growth, profitability and liquidity struggles persist, with negative cash flows and a reliance on external funding.

Income Statement

Neutral

Synergy CHC shows a mixed income statement performance with a significant increase in total revenue from 2023 to 2024. However, the net profit margin remains low and inconsistent over the years, highlighting challenges in achieving sustained profitability. The EBIT and EBITDA margins are positive, indicating some operational efficiencies, yet net income remains volatile.

Balance Sheet

Negative

The company's balance sheet indicates high leverage with a significant debt-to-equity ratio due to negative equity, which poses financial risks. ROE is not meaningful due to negative equity, and the equity ratio is also negative. These factors suggest financial instability and potential challenges in meeting long-term obligations.

Cash Flow

Negative

Cash flow analysis reveals negative operating and free cash flows in recent years, reflecting liquidity struggles. The operating cash flow to net income ratio is concerning, indicating difficulty in translating profits into cash. Despite these challenges, financing activities have been positive, suggesting reliance on external funding.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
34.83M	42.78M	38.41M	0.00	40.23M
	Gross Profit
23.64M	32.08M	13.30M	0.00	25.55M
	EBIT
5.80M	10.81M	-24.97M	0.00	3.09M
	EBITDA
6.47M	10.84M	-24.63M	0.00	3.19M
	Net Income Common Stockholders
2.12M	6.34M	-32.63M	0.00	1.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
687.92K	632.53K	1.93M	0.00	1.67M
	Total Assets
16.34M	12.24M	18.54M	0.00	12.59M
	Total Debt
27.52M	27.63M	22.83M	0.00	8.75M
	Net Debt
26.83M	26.99M	20.90M	0.00	7.08M
	Total Liabilities
32.97M	39.55M	52.06M	0.00	16.27M
	Stockholders Equity
-16.63M	-27.31M	-33.52M	0.00	-3.68M
Cash Flow		Free Cash Flow
-4.80M	421.73K	-8.43M	0.00	-1.59M
	Operating Cash Flow
-4.80M	421.73K	-8.43M	0.00	-1.59M
	Investing Cash Flow
0.00	0.00	0.00	0.00	―
	Financing Cash Flow
4.80M	-2.09M	8.96M	0.00	1.95M

Synergy CHC Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.13

Price Trends

50DMA

2.80

Negative

100DMA

3.58

Negative

200DMA

3.47

Negative

Market Momentum

MACD

-0.22

Negative

RSI

46.21

Neutral

STOCH

43.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNYR, the sentiment is Neutral. The current price of 2.13 is above the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.80, and below the 200-day MA of 3.47, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNYR.

Synergy CHC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBH	70 Neutral	$4.17B	19.73	12.63%	―	-1.41%	―
Sector *	64 Neutral	$8.89B	14.76	4.72%	174.26%	3.61%	4.20%
SNYR	47 Neutral	$18.64M	1.17	-23.21%	―	―	―
GRDN	47 Neutral	$1.63B	―		―	―	―
OMI	42 Neutral	$580.18M	―	-48.70%	―	3.55%	-757.75%
RDGT	40 Underperform	$6.64M	―	-27.69%	―	-4.87%	94.14%
ZYXI	38 Underperform	$69.85M	24.14	-27.52%	―	-8.63%	-202.31%

* Consumer Defensive Sector Average

Performance Comparison

SNYR

Synergy CHC

2.13

2.01

1675.00%

RDGT

Ridgetech

1.07

-1.40

-56.68%

OMI

Owens & Minor

7.51

-11.71

-60.93%

PBH

Prestige Consumer Healthcare

84.19

14.19

20.27%

ZYXI

Zynex

2.31

-8.43

-78.49%

GRDN

Guardian Pharmacy Services, Inc. Class A

25.79

8.04

45.30%

Synergy CHC Earnings Call Summary

Earnings Call Date:Mar 31, 2025

(Q3-2024)

% Change Since: -26.55%|

Next Earnings Date:May 15, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a challenging quarter primarily due to a strategic rebranding and de-inventorying process that impacted revenues. However, the company achieved significant milestones, including a successful IPO and expansion into new retail channels, indicating potential for future growth.

Q3-2024 Updates

Positive Updates

Successful IPO Completion

Synergy completed its IPO in late October, raising approximately $6.2 million in net proceeds and began trading on the Nasdaq under the symbol SNYR.

Seven Consecutive Quarters of Profitability

Synergy reported its seventh consecutive quarter of profitable results, marking continued financial stability.

Expansion into New Retail Channels

Synergy expanded its retail relationships with BJ's Wholesale Clubs and Publix, increasing distribution points across key markets.

Global Trademark Strategy

Synergy registered 22 FOCUSfactor trademarks globally, paving the way for future growth and sustained market leadership.

Negative Updates

Significant Revenue Decline

Revenue in the third quarter was $7.1 million compared to $10.8 million in the year-ago quarter, a decrease of 34%, primarily due to rebranding and retailer de-inventorying.

Gross Margin Reduction

Gross margin in the third quarter decreased 476 basis points to 67.2% compared to 72% a year ago, due to product mix sold within the quarter.

Flat Tummy Brand Revenue Decline

Flat Tummy brand revenue was not up year-over-year, following a sell-through of previous products and prior to the launch of new SKUs.

CFO Departure

CFO Stacy Bieber announced her departure to pursue new opportunities, with Jaime Fickett stepping in as Interim CFO.

Company Guidance

During Synergy CHC Corporation's Q3 2024 earnings call, several key metrics and strategic initiatives were discussed. The company reported a revenue decline to $7.1 million, down from $10.8 million in Q3 2023, attributed primarily to a rebranding effort for their FOCUSfactor products, which led to a temporary $3 million sales impact due to retailer de-inventorying. Despite this, the company maintained a gross margin of 67.2%. EBITDA was reported at $1.3 million, marking a 38% decrease from the previous year. Synergy also highlighted its strategic expansion, noting new retail partnerships, including placement in all 267 BJ's Wholesale Clubs and all 1,200 Publix grocery stores. The company is poised for future growth with plans to introduce new product SKUs and expand its ready-to-drink beverage line in early 2025. The recent IPO, which raised $6.2 million in net proceeds, allowed Synergy to reduce its debt by $3.1 million, strengthening its financial position.

Synergy CHC Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures

Synergy CHC Appoints New CFO Amidst Leadership Changes

Positive

Mar 31, 2025

On March 27, 2025, Synergy CHC appointed Jaime Fickett as the new Chief Financial Officer, marking a significant leadership change. The company reported its eighth consecutive quarter of profitability for 2024, despite a decrease in revenue and net income due to rebranding efforts and retailer de-inventorying. Synergy successfully completed its initial public offering in October 2024 and expanded its partnerships with major retailers, positioning itself for future growth.

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.