Synergy CHC (SNYR) AI Stock Analysis

• Market Cap: $20.48M
• Dividend Yield: N/A
• Average Volume (3M): 136.07K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.96
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 21
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 11,251,853
• 10 Day Avg. Volume: 89,526
• 30 Day Avg. Volume: 136,069
• PEG Ratio: -0.23
• Price to Book (P/B): -2.01
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -6.95
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $7.00
• Price Target Upside: 284.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▲(9.89% Upside)

The score is held back primarily by balance sheet stress (negative equity) and negative recent cash generation, which elevate financing risk despite improved profitability. Technical indicators also point to weak momentum below major moving averages. These are partially offset by a low P/E valuation and an earnings call that showed revenue growth and margin improvement but weaker net income/EPS and higher operating cash usage.

Positive Factors

Sustained Profitability

Reporting 11 consecutive profitable quarters signals durable operational discipline and repeatable margin capture. Consistent profitability improves partner and lender confidence, supports strategic investments in distribution and marketing, and shortens the path to stabilizing cash generation over the medium term.

Strong Gross and Operating Margins

Very high gross margins (68–75%) and roughly 25% TTM operating margin create favorable unit economics. This structural margin advantage provides room to fund retail expansion and marketing, helps absorb promotional pressure, and makes incremental revenue more profitable as distribution scales over months.

Expanding Distribution Network

Multiple new distribution and Direct Store Delivery partnerships materially broaden retail footprint for FOCUSfactor beverages and supplements. A wider, multi-state retail network is a durable growth lever that supports sustained unit-volume expansion, improved shelf presence, and stronger channel relationships over the medium term.

Negative Factors

Negative Shareholders' Equity

Negative shareholders’ equity across reported periods combined with sizable TTM debt materially weakens financial flexibility. This structural balance-sheet stress raises refinancing and solvency risk, increases likelihood of dilutive capital raises, and limits capacity to fund growth or absorb operating setbacks.

Weak Cash Generation

Operating and free cash flow remain negative in 2024 and TTM despite reported profits, indicating poor cash conversion. Persistent cash consumption forces reliance on external financing, elevates execution risk for distribution rollouts, and could necessitate further equity or debt raises that dilute or burden capital structure.

Rising Operating Costs and EPS Pressure

Incremental operating expenses tied to the beverage launch and public-company costs materially increased SG&A and coincided with lower net income and EPS. If top-line growth doesn't sufficiently scale to offset these structural cost increases, margins and free cash flow may remain pressured, constraining reinvestment and profitability.

Synergy CHC Business Overview & Revenue Model

Company Description

Synergy 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 Money

Synergy 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	34.59M	34.83M	42.78M	38.41M	40.23M	29.36M
Gross Profit	24.55M	23.64M	32.08M	12.96M	25.55M	20.22M
EBITDA	8.78M	6.47M	10.84M	-25.81M	2.81M	-6.88M
Net Income	2.58M	2.12M	6.34M	-32.63M	1.41M	-9.21M
Balance Sheet
Total Assets	20.69M	16.34M	12.24M	18.54M	12.59M	5.19M
Cash, Cash Equivalents and Short-Term Investments	1.11M	687.92K	632.53K	1.93M	1.67M	1.22M
Total Debt	25.11M	27.52M	27.62M	22.83M	8.75M	5.71M
Total Liabilities	28.94M	32.97M	39.55M	52.06M	16.27M	10.39M
Stockholders Equity	-8.25M	-16.63M	-27.31M	-33.52M	-3.68M	-5.20M
Cash Flow
Free Cash Flow	-6.64M	-4.80M	421.73K	-8.43M	-1.59M	2.95M
Operating Cash Flow	-6.64M	-4.80M	421.73K	-8.43M	-1.59M	2.95M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	7.42M	4.80M	-2.09M	8.96M	1.95M	-2.05M

Synergy CHC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNYR, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.96, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNYR.

Synergy CHC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEG	54 Neutral	$80.59M	-261.96	4.68%	―	24.82%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNYR	50 Neutral	$20.48M	6.24	―	―	―	―
RDGT	44 Neutral	$50.45M	-2.40	-6.45%	―	-22.37%	63.14%