Synex Internt'l (SXI) AI Stock Analysis

• Market Cap: C$11.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 1.97%
• EPS Growth: 16.73%
• Country: CA
• Employees: 7
• Sector: Utilities
• Sector Strength: 77
• Industry: Renewable Utilities
• EPS (TTM): -0.04
• Shares Outstanding: 5,007,281
• 10 Day Avg. Volume: 1,125
• 30 Day Avg. Volume: 1,598
• PEG Ratio: 0.67
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.58
• 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: C$2.00
• Price Target Upside: -14.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: C$2.50 ▲(6.84%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 Business Overview & Revenue Model

Company Description

Synex 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 Money

Synex 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.68M	2.20M	3.35M	3.53M	3.33M
Gross Profit	2.17M	2.05M	3.19M	3.34M	3.19M
EBITDA	295.18K	-295.50K	913.27K	626.52K	1.04M
Net Income	-1.20M	-1.75M	-663.63K	-848.62K	-190.75K
Balance Sheet
Total Assets	18.72M	19.77M	21.73M	23.13M	21.82M
Cash, Cash Equivalents and Short-Term Investments	117.36K	318.66K	625.89K	1.07M	859.91K
Total Debt	13.08M	13.72M	14.61M	15.44M	13.29M
Total Liabilities	15.45M	15.87M	16.70M	17.46M	15.24M
Stockholders Equity	2.89M	3.49M	4.55M	5.08M	5.85M
Cash Flow
Free Cash Flow	-749.59K	-647.19K	297.65K	-562.06K	136.69K
Operating Cash Flow	-639.36K	-368.70K	568.73K	-363.76K	168.81K
Investing Cash Flow	-110.23K	-298.49K	-272.32K	73.35K	513.50K
Financing Cash Flow	265.95K	-195.54K	-801.88K	2.10M	-321.84K

Synex Internt'l Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.34 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.32, and above the 200-day MA of 1.93, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 24.18 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REVV	67 Neutral	C$17.30M	7.08	73.47%	―	371.84%	―
Sector *	67 Neutral	$16.87B	17.02	4.48%	3.26%	4.72%	5.95%
WEB	54 Neutral	C$66.69M	3.38	43.72%	―	―	-37.73%
GIP	50 Neutral	C$70.09M	―	-24.89%	―	-13.68%	-1548.28%
SXI	45 Neutral	C$11.74M	―	-27.97%	―	1.97%	16.73%
GRB	35 Underperform	C$16.48M	―	-90.04%	―	-100.00%	-14.57%
RROYF	―	$13.92M	―	-103.52%	23.57%	―	―

Synex Internt'l Corporate Events

Synex Shareholders Approve Acquisition by Sitka Power

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.

Synex Renewable Energy Reports Q3 2025 Financial Results Amid Operational Challenges

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.

Synex Renewable Energy Plans Acquisition by Sitka Power

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.