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Synex Internt'l J (TSE:SXI)
TSX:SXI
Canadian Market

Synex Internt'l (SXI) AI Stock Analysis

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Synex Internt'l

(TSX:SXI)

Rating:45Neutral
Price Target:
C$2.50
▲(7.30%Upside)
The overall stock score for Synex International is negatively impacted by its financial performance, characterized by ongoing unprofitability and high leverage. Technical indicators are neutral, offering no clear momentum to offset financial concerns. Valuation issues, highlighted by a negative P/E ratio, further weigh on the score. While corporate events indicate future growth potential, current challenges maintain a cautious outlook.

Synex Internt'l (SXI) vs. iShares MSCI Canada ETF (EWC)

Synex Internt'l Business Overview & Revenue Model

Company DescriptionSynex Renewable Energy Corporation, through its subsidiaries, develops, owns, and operates electric power generation facilities. It provides consulting engineering services for the control and use of water, as well as related developments requiring civil, water resource, and environmental engineering projects primarily in the fields of hydrology, river engineering, fisheries and environmental assessment, water quality, site development services, water supply, hydro power, wastewater treatment and disposal, flood control, and storm water management projects. The company also offers professional services, which includes research, feasibility studies, project management, technical design, construction management, and operation facilities. In addition, it acts as an independent power producer, which owns 12 megawatts of hydroelectric capacity in British Columbia, primarily on Vancouver Island. The company was formerly known as Synex International Inc. and changed its name to Synex Renewable Energy Corporation in January 2022. Synex Renewable Energy Corporation was founded in 1973 and is headquartered in Niagara Falls, Canada.
How the Company Makes MoneySynex International Inc. generates revenue primarily through the production and sale of electricity generated by its hydroelectric facilities. These facilities harness the power of flowing water to produce renewable energy, which is then sold to utility companies and energy markets. The company's revenue model is centered around long-term power purchase agreements (PPAs) with utility companies, ensuring a steady and predictable income stream. Additionally, Synex may engage in the development of new hydroelectric projects, where it earns revenue through project management and consulting services in the renewable energy sector. Partnerships with government agencies and private firms to develop sustainable energy initiatives also contribute to its earnings.

Synex Internt'l Financial Statement Overview

Summary
Synex International is facing significant financial challenges, including negative profitability and high leverage. The company needs to improve operational efficiency and manage its debt levels to stabilize its financial position. While revenue is growing, the lack of profitability and high leverage could pose long-term risks.
Income Statement
40
Negative
The company shows a negative net profit margin and EBIT margin for the TTM, indicating ongoing difficulties in achieving profitability. Revenue growth was strong with a 11.93% increase from the previous year, but the gross profit margin has declined, suggesting potential inefficiencies or increased costs.
Balance Sheet
30
Negative
The debt-to-equity ratio is high, reflecting a significant reliance on debt financing, which poses a risk, especially with the company's negative net income. The equity ratio has decreased, indicating reduced financial stability. Return on equity is negative, highlighting continued unprofitability.
Cash Flow
35
Negative
Operating cash flow remains weak, but there is a slight improvement in free cash flow in the TTM compared to the previous period. The free cash flow to net income ratio is negative, showing challenges in converting income into cash flow. Overall, cash flow management is a concern.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue3.01M2.68M2.20M3.35M3.53M3.33M
Gross Profit2.07M2.17M2.05M3.19M3.34M3.19M
EBITDA776.81K295.18K-295.50K913.27K626.52K1.04M
Net Income-756.01K-1.20M-1.75M-663.63K-848.62K-190.75K
Balance Sheet
Total Assets19.02M18.72M19.77M21.73M23.13M21.82M
Cash, Cash Equivalents and Short-Term Investments271.11K117.36K318.66K625.89K1.07M859.91K
Total Debt13.08M13.08M13.72M14.61M15.44M13.29M
Total Liabilities15.42M15.45M15.87M16.70M17.46M15.24M
Stockholders Equity3.22M2.89M3.49M4.55M5.08M5.85M
Cash Flow
Free Cash Flow-249.05K-749.59K-647.19K297.65K-562.06K136.69K
Operating Cash Flow3.13K-639.36K-368.70K568.73K-363.76K168.81K
Investing Cash Flow-254.90K-110.23K-298.49K-272.32K73.35K513.50K
Financing Cash Flow168.91K265.95K-195.54K-801.88K2.10M-321.84K

Synex Internt'l Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.33
Price Trends
50DMA
2.31
Positive
100DMA
2.08
Positive
200DMA
1.88
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
54.79
Neutral
STOCH
98.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SXI, the sentiment is Positive. The current price of 2.33 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.31, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 98.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SXI.

Synex Internt'l Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.52B17.144.47%3.56%4.76%6.13%
62
Neutral
C$14.18M6.5373.47%371.84%
TSWEB
54
Neutral
C$61.64M3.1743.72%-37.73%
TSGIP
50
Neutral
C$79.10M-24.89%-13.68%-1548.28%
TSSXI
45
Neutral
C$11.67M-27.97%1.97%16.73%
TSGRB
35
Underperform
C$17.23M-90.04%-100.00%-14.57%
$14.69M-103.52%8.58%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SXI
Synex Internt'l
2.33
0.52
28.73%
TSE:GIP
Green Impact Partners Inc
4.02
0.72
21.82%
TSE:GRB
Greenbriar Capital
0.46
-0.12
-20.69%
TSE:REVV
ReVolve Renewable Power Corp
0.24
-0.11
-31.43%
TSE:WEB
Westbridge Energy
0.62
-0.15
-19.48%
RROYF
RE Royalties
0.34
0.01
3.03%

Synex Internt'l Corporate Events

Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Synex Shareholders Approve Acquisition by Sitka Power
Neutral
May 27, 2025

Synex Renewable Energy Corporation announced that its shareholders have approved a statutory plan of arrangement for Sitka Power Inc. to acquire all outstanding common shares for C$2.40 per share. With approximately 82.74% of votes in favor, the arrangement is set to proceed pending final court and regulatory approvals. Upon completion, Synex will be delisted from the Toronto Stock Exchange and become a wholly-owned subsidiary of Sitka, potentially impacting its market positioning and operations.

Business Operations and StrategyFinancial Disclosures
Synex Renewable Energy Reports Q3 2025 Financial Results Amid Operational Challenges
Negative
May 13, 2025

Synex Renewable Energy Corporation reported a decrease in revenue and electricity sales for the third quarter of 2025, attributed to lower precipitation and downtime at the Mears Creek site. Despite a year-over-year revenue increase, the company faced a higher net loss compared to the previous year. Synex continues to invest in wind licenses to support BC Hydro’s Clean Power Call, aiming for a significant portion of electricity from renewable sources. The company’s cash position improved due to customer collections and a loan from a related party, while its outstanding loan principal decreased slightly.

Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Synex Renewable Energy Plans Acquisition by Sitka Power
Neutral
Apr 29, 2025

Synex Renewable Energy Corporation announced the filing of a management information circular for a special meeting of shareholders to approve a plan of arrangement with Sitka Power Inc. Under this arrangement, Sitka will acquire all outstanding common shares of Synex for C$2.40 per share, leading to Synex’s delisting from the Toronto Stock Exchange and becoming a wholly-owned subsidiary of Sitka. The board of directors recommends shareholders vote in favor of the arrangement, which is expected to close in the second half of 2025, pending necessary approvals.

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: Jul 01, 2025