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SYNCHRONOSS TECHNOLOGIES INC (SNCR) Stock Fundamental Analysis

NASDAQ:SNCR - Nasdaq - US87157B4005 - Common Stock - Currency: USD

9.61  -0.15 (-1.54%)

After market: 9.73 +0.12 (+1.25%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SNCR. SNCR was compared to 284 industry peers in the Software industry. SNCR may be in some trouble as it scores bad on both profitability and health. SNCR has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year SNCR has reported negative net income.
SNCR had a positive operating cash flow in the past year.
SNCR had negative earnings in each of the past 5 years.
SNCR had a positive operating cash flow in 4 of the past 5 years.
SNCR Yearly Net Income VS EBIT VS OCF VS FCFSNCR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

1.2 Ratios

SNCR has a Return On Assets of -12.77%. This is in the lower half of the industry: SNCR underperforms 63.77% of its industry peers.
SNCR has a worse Return On Equity (-108.44%) than 79.35% of its industry peers.
SNCR has a better Return On Invested Capital (5.65%) than 76.81% of its industry peers.
Industry RankSector Rank
ROA -12.77%
ROE -108.44%
ROIC 5.65%
ROA(3y)-12.72%
ROA(5y)-14.79%
ROE(3y)-41.4%
ROE(5y)-38.18%
ROIC(3y)N/A
ROIC(5y)N/A
SNCR Yearly ROA, ROE, ROICSNCR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60

1.3 Margins

With a decent Operating Margin value of 10.81%, SNCR is doing good in the industry, outperforming 78.99% of the companies in the same industry.
Looking at the Gross Margin, with a value of 76.64%, SNCR is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
SNCR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.81%
PM (TTM) N/A
GM 76.64%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.45%
GM growth 5Y7.7%
SNCR Yearly Profit, Operating, Gross MarginsSNCR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNCR is destroying value.
Compared to 1 year ago, SNCR has less shares outstanding
The number of shares outstanding for SNCR has been reduced compared to 5 years ago.
The debt/assets ratio for SNCR is higher compared to a year ago.
SNCR Yearly Shares OutstandingSNCR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
SNCR Yearly Total Debt VS Total AssetsSNCR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

SNCR has an Altman-Z score of -0.87. This is a bad value and indicates that SNCR is not financially healthy and even has some risk of bankruptcy.
SNCR has a worse Altman-Z score (-0.87) than 75.72% of its industry peers.
SNCR has a Debt/Equity ratio of 5.24. This is a high value indicating a heavy dependency on external financing.
SNCR's Debt to Equity ratio of 5.24 is on the low side compared to the rest of the industry. SNCR is outperformed by 86.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.24
Debt/FCF N/A
Altman-Z -0.87
ROIC/WACC0.52
WACC10.86%
SNCR Yearly LT Debt VS Equity VS FCFSNCR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 1.88 indicates that SNCR should not have too much problems paying its short term obligations.
SNCR has a Current ratio of 1.88. This is comparable to the rest of the industry: SNCR outperforms 56.88% of its industry peers.
A Quick Ratio of 1.88 indicates that SNCR should not have too much problems paying its short term obligations.
SNCR has a Quick ratio (1.88) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.88
SNCR Yearly Current Assets VS Current LiabilitesSNCR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

2

3. Growth

3.1 Past

SNCR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.92%, which is quite impressive.
Looking at the last year, SNCR shows a very negative growth in Revenue. The Revenue has decreased by -27.20% in the last year.
Measured over the past years, SNCR shows a very negative growth in Revenue. The Revenue has been decreasing by -12.81% on average per year.
EPS 1Y (TTM)84.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-157.78%
Revenue 1Y (TTM)-27.2%
Revenue growth 3Y-17.43%
Revenue growth 5Y-12.81%
Sales Q2Q%-22.79%

3.2 Future

Based on estimates for the next years, SNCR will show a very strong growth in Earnings Per Share. The EPS will grow by 66.78% on average per year.
The Revenue is expected to decrease by -8.42% on average over the next years.
EPS Next Y105.14%
EPS Next 2Y66.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.81%
Revenue Next 2Y-8.42%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SNCR Yearly Revenue VS EstimatesSNCR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
SNCR Yearly EPS VS EstimatesSNCR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

5

4. Valuation

4.1 Price/Earnings Ratio

SNCR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 8.85 indicates a reasonable valuation of SNCR.
Based on the Price/Forward Earnings ratio, SNCR is valued cheaper than 95.29% of the companies in the same industry.
SNCR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 8.85
SNCR Price Earnings VS Forward Price EarningsSNCR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SNCR is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.28
SNCR Per share dataSNCR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

4.3 Compensation for Growth

SNCR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SNCR's earnings are expected to grow with 66.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y66.78%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

SNCR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

SYNCHRONOSS TECHNOLOGIES INC

NASDAQ:SNCR (2/21/2025, 8:00:02 PM)

After market: 9.73 +0.12 (+1.25%)

9.61

-0.15 (-1.54%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)03-10 2025-03-10/amc
Inst Owners51.05%
Inst Owner Change-98.97%
Ins Owners10.47%
Ins Owner Change-0.51%
Market Cap104.17M
Analysts84.44
Price Target27.03 (181.27%)
Short Float %1.62%
Short Ratio2.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.19
Dividend Growth(5Y)4.22%
DP-18.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)222.61%
Min EPS beat(2)-178.75%
Max EPS beat(2)623.98%
EPS beat(4)2
Avg EPS beat(4)-15.54%
Min EPS beat(4)-693.65%
Max EPS beat(4)623.98%
EPS beat(8)4
Avg EPS beat(8)62.94%
EPS beat(12)7
Avg EPS beat(12)90.92%
EPS beat(16)9
Avg EPS beat(16)84.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-1.23%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-5.25%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-4.09%
Revenue beat(12)2
Avg Revenue beat(12)-3.7%
Revenue beat(16)5
Avg Revenue beat(16)-2.38%
PT rev (1m)8.9%
PT rev (3m)11.97%
EPS NQ rev (1m)-75.27%
EPS NQ rev (3m)-82.49%
EPS NY rev (1m)-90.41%
EPS NY rev (3m)-94.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 8.85
P/S 0.61
P/FCF N/A
P/OCF 7.02
P/B 2.95
P/tB N/A
EV/EBITDA 7.28
EPS(TTM)-0.19
EYN/A
EPS(NY)1.09
Fwd EY11.3%
FCF(TTM)0
FCFYN/A
OCF(TTM)1.37
OCFY14.24%
SpS15.76
BVpS3.26
TBVpS-15.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.77%
ROE -108.44%
ROCE 7.15%
ROIC 5.65%
ROICexc 6.26%
ROICexgc 53.63%
OM 10.81%
PM (TTM) N/A
GM 76.64%
FCFM N/A
ROA(3y)-12.72%
ROA(5y)-14.79%
ROE(3y)-41.4%
ROE(5y)-38.18%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.45%
GM growth 5Y7.7%
F-Score5
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 5.24
Debt/FCF N/A
Debt/EBITDA 5.06
Cap/Depr 82.1%
Cap/Sales 8.71%
Interest Coverage 250
Cash Conversion 40.55%
Profit Quality N/A
Current Ratio 1.88
Quick Ratio 1.88
Altman-Z -0.87
F-Score5
WACC10.86%
ROIC/WACC0.52
Cap/Depr(3y)69.91%
Cap/Depr(5y)55.89%
Cap/Sales(3y)9.74%
Cap/Sales(5y)8.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)84.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-157.78%
EPS Next Y105.14%
EPS Next 2Y66.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-27.2%
Revenue growth 3Y-17.43%
Revenue growth 5Y-12.81%
Sales Q2Q%-22.79%
Revenue Next Year-19.81%
Revenue Next 2Y-8.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y235.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1174.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y99.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.63%
OCF growth 3YN/A
OCF growth 5YN/A