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SYNEOS HEALTH INC (SYNH) Stock Fundamental Analysis

NASDAQ:SYNH - Nasdaq - US87166B1026 - Common Stock - Currency: USD

42.98  +0.01 (+0.02%)

After market: 42.97 -0.01 (-0.02%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SYNH. SYNH was compared to 55 industry peers in the Life Sciences Tools & Services industry. While SYNH is still in line with the averages on profitability rating, there are concerns on its financial health. SYNH may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year SYNH was profitable.
In the past year SYNH had a positive cash flow from operations.
Each year in the past 5 years SYNH has been profitable.
In the past 5 years SYNH always reported a positive cash flow from operatings.
SYNH Yearly Net Income VS EBIT VS OCF VS FCFSYNH 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 0 100M -100M 200M 300M 400M

1.2 Ratios

SYNH has a Return On Assets of 0.88%. This is in the better half of the industry: SYNH outperforms 70.31% of its industry peers.
SYNH's Return On Equity of 2.04% is fine compared to the rest of the industry. SYNH outperforms 71.88% of its industry peers.
SYNH's Return On Invested Capital of 4.23% is fine compared to the rest of the industry. SYNH outperforms 70.31% of its industry peers.
SYNH had an Average Return On Invested Capital over the past 3 years of 4.99%. This is significantly below the industry average of 13.60%.
Industry RankSector Rank
ROA 0.88%
ROE 2.04%
ROIC 4.23%
ROA(3y)2.83%
ROA(5y)2.12%
ROE(3y)6.82%
ROE(5y)5.13%
ROIC(3y)4.99%
ROIC(5y)4.67%
SYNH Yearly ROA, ROE, ROICSYNH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

1.3 Margins

The Profit Margin of SYNH (1.31%) is better than 70.31% of its industry peers.
In the last couple of years the Profit Margin of SYNH has grown nicely.
SYNH's Operating Margin of 6.33% is fine compared to the rest of the industry. SYNH outperforms 65.63% of its industry peers.
In the last couple of years the Operating Margin of SYNH has grown nicely.
SYNH has a worse Gross Margin (22.14%) than 84.38% of its industry peers.
SYNH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.33%
PM (TTM) 1.31%
GM 22.14%
OM growth 3Y5.34%
OM growth 5Y13.1%
PM growth 3Y20.73%
PM growth 5YN/A
GM growth 3Y1.57%
GM growth 5Y0.02%
SYNH Yearly Profit, Operating, Gross MarginsSYNH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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3

2. Health

2.1 Basic Checks

SYNH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SYNH has less shares outstanding
Compared to 1 year ago, SYNH has an improved debt to assets ratio.
SYNH Yearly Shares OutstandingSYNH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
SYNH Yearly Total Debt VS Total AssetsSYNH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

2.2 Solvency

SYNH has an Altman-Z score of 1.46. This is a bad value and indicates that SYNH is not financially healthy and even has some risk of bankruptcy.
SYNH has a Altman-Z score (1.46) which is in line with its industry peers.
SYNH has a debt to FCF ratio of 16.71. This is a negative value and a sign of low solvency as SYNH would need 16.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 16.71, SYNH is doing good in the industry, outperforming 65.63% of the companies in the same industry.
SYNH has a Debt/Equity ratio of 0.77. This is a neutral value indicating SYNH is somewhat dependend on debt financing.
SYNH has a worse Debt to Equity ratio (0.77) than 79.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 16.71
Altman-Z 1.46
ROIC/WACC0.39
WACC10.92%
SYNH Yearly LT Debt VS Equity VS FCFSYNH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

2.3 Liquidity

SYNH has a Current Ratio of 1.20. This is a normal value and indicates that SYNH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SYNH (1.20) is worse than 93.75% of its industry peers.
SYNH has a Quick Ratio of 1.20. This is a normal value and indicates that SYNH is financially healthy and should not expect problems in meeting its short term obligations.
SYNH's Quick ratio of 1.20 is on the low side compared to the rest of the industry. SYNH is outperformed by 82.81% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
SYNH Yearly Current Assets VS Current LiabilitesSYNH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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4

3. Growth

3.1 Past

SYNH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.79%.
Measured over the past years, SYNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.74% on average per year.
The Revenue has been growing slightly by 0.01% in the past year.
SYNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.08% yearly.
EPS 1Y (TTM)-23.79%
EPS 3Y13.48%
EPS 5Y13.74%
EPS Q2Q%-54.4%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y4.87%
Revenue growth 5Y15.08%
Sales Q2Q%0.39%

3.2 Future

SYNH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.17% yearly.
The Revenue is expected to grow by 1.71% on average over the next years.
EPS Next Y-25.43%
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%
EPS Next 5Y3.17%
Revenue Next Year-2.82%
Revenue Next 2Y-0.54%
Revenue Next 3Y1.03%
Revenue Next 5Y1.71%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SYNH Yearly Revenue VS EstimatesSYNH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
SYNH Yearly EPS VS EstimatesSYNH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.37, the valuation of SYNH can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SYNH, based on the Price/Earnings ratio.
SYNH is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.48 indicates a reasonable valuation of SYNH.
Based on the Price/Forward Earnings ratio, SYNH is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SYNH is valued rather cheaply.
Industry RankSector Rank
PE 11.37
Fwd PE 10.48
SYNH Price Earnings VS Forward Price EarningsSYNH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYNH indicates a rather cheap valuation: SYNH is cheaper than 95.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYNH indicates a rather cheap valuation: SYNH is cheaper than 85.94% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.53
EV/EBITDA 12.05
SYNH Per share dataSYNH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

The decent profitability rating of SYNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%

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0

5. Dividend

5.1 Amount

No dividends for SYNH!.
Industry RankSector Rank
Dividend Yield N/A

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SYNEOS HEALTH INC

NASDAQ:SYNH (9/27/2023, 8:00:01 PM)

After market: 42.97 -0.01 (-0.02%)

42.98

+0.01 (+0.02%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)08-09 2023-08-09/bmo
Earnings (Next)11-02 2023-11-02/bmo
Inst Owners0%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change0%
Market Cap4.46B
Analysts53.75
Price Target43.35 (0.86%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.02%
Min EPS beat(2)-29.57%
Max EPS beat(2)11.52%
EPS beat(4)2
Avg EPS beat(4)-6.43%
Min EPS beat(4)-29.57%
Max EPS beat(4)11.52%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.57%
Min Revenue beat(2)3.81%
Max Revenue beat(2)5.33%
Revenue beat(4)3
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)5.33%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.13%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)1.03%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)2.45%
Valuation
Industry RankSector Rank
PE 11.37
Fwd PE 10.48
P/S 0.82
P/FCF 27.53
P/OCF 17.62
P/B 1.28
P/tB N/A
EV/EBITDA 12.05
EPS(TTM)3.78
EY8.79%
EPS(NY)4.1
Fwd EY9.54%
FCF(TTM)1.56
FCFY3.63%
OCF(TTM)2.44
OCFY5.67%
SpS52.25
BVpS33.68
TBVpS-19.54
PEG (NY)N/A
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 0.88%
ROE 2.04%
ROCE 5.32%
ROIC 4.23%
ROICexc 4.29%
ROICexgc 32.26%
OM 6.33%
PM (TTM) 1.31%
GM 22.14%
FCFM 2.99%
ROA(3y)2.83%
ROA(5y)2.12%
ROE(3y)6.82%
ROE(5y)5.13%
ROIC(3y)4.99%
ROIC(5y)4.67%
ROICexc(3y)5.11%
ROICexc(5y)4.79%
ROICexgc(3y)50.55%
ROICexgc(5y)76.43%
ROCE(3y)6.27%
ROCE(5y)5.87%
ROICexcg growth 3Y-8.19%
ROICexcg growth 5Y1.51%
ROICexc growth 3Y6.95%
ROICexc growth 5Y27.79%
OM growth 3Y5.34%
OM growth 5Y13.1%
PM growth 3Y20.73%
PM growth 5YN/A
GM growth 3Y1.57%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 16.71
Debt/EBITDA 4.56
Cap/Depr 37.2%
Cap/Sales 1.68%
Interest Coverage 250
Cash Conversion 43.05%
Profit Quality 227.34%
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 1.46
F-Score6
WACC10.92%
ROIC/WACC0.39
Cap/Depr(3y)28.14%
Cap/Depr(5y)26.15%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.31%
Profit Quality(3y)162.48%
Profit Quality(5y)341.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.79%
EPS 3Y13.48%
EPS 5Y13.74%
EPS Q2Q%-54.4%
EPS Next Y-25.43%
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%
EPS Next 5Y3.17%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y4.87%
Revenue growth 5Y15.08%
Sales Q2Q%0.39%
Revenue Next Year-2.82%
Revenue Next 2Y-0.54%
Revenue Next 3Y1.03%
Revenue Next 5Y1.71%
EBIT growth 1Y-27.25%
EBIT growth 3Y10.47%
EBIT growth 5Y30.16%
EBIT Next Year-2.87%
EBIT Next 3Y4.37%
EBIT Next 5Y3.5%
FCF growth 1Y-63.52%
FCF growth 3Y9.43%
FCF growth 5Y16.65%
OCF growth 1Y-47.97%
OCF growth 3Y10.26%
OCF growth 5Y16.58%