tiprankstipranks
Trending News
More News >
Synergy CHC (SNYR)
NASDAQ:SNYR
US Market
Advertisement

Synergy CHC (SNYR) AI Stock Analysis

Compare
69 Followers

Top Page

SN

Synergy CHC

(NASDAQ:SNYR)

Rating:47Neutral
Price Target:
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. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q3-2024)
|
% Change Since: 76.80%|
Next Earnings Date:Nov 13, 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 Financial Statement Overview

Summary
Synergy CHC shows revenue growth, but profitability is inconsistent, with significant financial instability due to high leverage and negative equity. Cash flow struggles further highlight liquidity issues, despite some operational efficiencies.
Income Statement
45
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
30
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
40
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.57M34.83M42.78M38.41M0.0040.23M
Gross Profit17.46M23.64M32.08M13.30M0.0025.55M
EBITDA5.02M6.47M10.84M-24.63M0.003.19M
Net Income1.77M2.12M6.34M-32.63M0.001.41M
Balance Sheet
Total Assets15.66M16.34M12.24M18.54M0.0012.59M
Cash, Cash Equivalents and Short-Term Investments177.88K687.92K632.53K1.93M0.001.67M
Total Debt28.12M27.52M27.63M22.83M0.008.75M
Total Liabilities23.23M32.97M39.55M52.06M0.0016.27M
Stockholders Equity-7.57M-16.63M-27.31M-33.52M0.00-3.68M
Cash Flow
Free Cash Flow-4.77M-4.80M421.73K-8.43M0.00-1.59M
Operating Cash Flow-4.77M-4.80M421.73K-8.43M0.00-1.59M
Investing Cash Flow0.000.000.000.000.00
Financing Cash Flow4.11M4.80M-2.09M8.96M0.001.95M

Synergy CHC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.43
Price Trends
50DMA
2.40
Positive
100DMA
2.58
Positive
200DMA
3.76
Negative
Market Momentum
MACD
0.32
Negative
RSI
71.76
Negative
STOCH
94.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNYR, the sentiment is Positive. The current price of 3.43 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.40, and below the 200-day MA of 3.76, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 71.76 is Negative, neither overbought nor oversold. The STOCH value of 94.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNYR.

Synergy CHC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PBPBH
69
Neutral
$3.70B17.5412.30%1.10%2.65%
65
Neutral
$26.91B15.42-4.18%3.21%1.01%1.34%
OMOMI
50
Neutral
$607.55M-49.91%2.84%-828.91%
47
Neutral
$30.65M3.07-23.21%
47
Neutral
$1.33B
40
Underperform
$7.41M-27.69%-4.87%94.14%
39
Underperform
$68.64M24.14-27.52%-8.63%-202.31%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNYR
Synergy CHC
3.63
2.44
205.04%
RDGT
Ridgetech
1.46
-0.89
-37.87%
OMI
Owens & Minor
7.99
-6.62
-45.31%
PBH
Prestige Consumer Healthcare
75.13
3.56
4.97%
ZYXI
Zynex
2.35
-7.94
-77.16%
GRDN
Guardian Pharmacy Services, Inc. Class A
20.81
3.06
17.24%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 30, 2025