Synectics Plc (SNX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Synectics Plc

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Instem Plc

Why is Synectics Plc ?

Poor Management Efficiency with a low ROE of 3.27%

The company has been able to generate a Return on Equity (avg) of 3.27% signifying low profitability per unit of shareholders funds

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Operating Profit of 5.35%, the company declared Very Positive results in Nov 25

The company has declared positive results for the last 6 consecutive quarters
OPERATING CASH FLOW(Y) Highest at GBP 17.75 MM
DEBT-EQUITY RATIO (HY) Lowest at -28.55 %
RAW MATERIAL COST(Y) Fallen by -12.69% (YoY)

With ROE of 9.15%, it has a attractive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of -37.98%, its profits have risen by 11.4% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -37.98% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Synectics Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Synectics Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Synectics Plc

-37.98%

0.29

46.99%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.81%

EBIT Growth (5y)

23.29%

EBIT to Interest (avg)

0.07

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.24

Tax Ratio

23.84%

Dividend Payout Ratio

22.71%

Pledged Shares

Institutional Holding

ROCE (avg)

4.94%

ROE (avg)

3.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.81

EV to EBIT

3.70

EV to EBITDA

2.78

EV to Capital Employed

0.73

EV to Sales

0.32

PEG Ratio

0.78

Dividend Yield

2.50%

ROCE (Latest)

19.73%

ROE (Latest)

9.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 17.75 MM

DEBT-EQUITY RATIO (HY)

Lowest at -28.55 %

RAW MATERIAL COST(Y)

Fallen by -12.69% (YoY

CASH AND EQV(HY)

Highest at GBP 14.14 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.1 times

OPERATING PROFIT(Q)

Highest at GBP 4.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.44 %

PRE-TAX PROFIT(Q)

Highest at GBP 3.06 MM

-3What is not working for the Company

NET PROFIT(Q)

Lowest at GBP 1.39 MM

EPS(Q)

Lowest at GBP 0.06

Here's what is working for Synectics Plc

Debt-Equity Ratio

Lowest at -28.55 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at GBP 17.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit

Highest at GBP 4.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 12.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 3.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Cash and Eqv

Highest at GBP 14.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 1.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Synectics Plc

Net Profit

Lowest at GBP 1.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Net Profit

Fallen at -27.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)