42.98 USD
+0.01 (+0.02%)
42.97 USD
-0.01 (-0.02%)
We assign a fundamental rating of 4 out of 10 to SYNH. SYNH was compared to 58 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year SYNH was profitable.
- SYNH had a positive operating cash flow in the past year.
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.
- With a decent Return On Equity value of 2.04%, SYNH is doing good in the industry, outperforming 71.88% of the companies in the same industry.
- SYNH has a better Return On Invested Capital (4.23%) than 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 13.29%.
| Industry Rank | Sector 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%
1.3 Margins
- SYNH has a Profit Margin of 1.31%. This is in the better half of the industry: SYNH outperforms 70.31% of its industry peers.
- SYNH's Profit Margin has improved in the last couple of years.
- SYNH's Operating Margin of 6.33% is fine compared to the rest of the industry. SYNH outperforms 65.63% of its industry peers.
- SYNH's Operating Margin has improved in the last couple of years.
- 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 Rank | Sector 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%
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.
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's Altman-Z score of 1.46 is in line compared to the rest of the industry. SYNH outperforms 43.75% of its industry peers.
- The Debt to FCF ratio of SYNH is 16.71, which is on the high side as it means it would take SYNH, 16.71 years of fcf income to pay off all of its debts.
- SYNH's Debt to FCF ratio of 16.71 is fine compared to the rest of the industry. SYNH outperforms 65.63% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that SYNH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.77, SYNH is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 16.71 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.39
WACC10.92%
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.
- SYNH has a Current ratio of 1.20. This is amonst the worse of the industry: SYNH underperforms 93.75% of its industry peers.
- A Quick Ratio of 1.20 indicates that SYNH should not have too much problems paying its short term obligations.
- The Quick ratio of SYNH (1.20) is worse than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for SYNH have decreased strongly by -23.79% in the last year.
- 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.
- The Revenue has been growing by 15.08% on average over the past years. This is quite good.
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
- Based on estimates for the next years, SYNH will show a small growth in Earnings Per Share. The EPS will grow by 3.17% on average per year.
- SYNH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.71% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
- SYNH's Price/Earnings ratio is rather cheap when compared to the industry. SYNH is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SYNH to the average of the S&P500 Index (27.25), we can say SYNH is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.48, the valuation of SYNH can be described as very reasonable.
- 100.00% of the companies in the same industry are more expensive than SYNH, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SYNH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYNH is valued cheaper than 95.31% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SYNH is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.53 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%
5. Dividend
5.1 Amount
- No dividends for SYNH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SYNEOS HEALTH INC / SYNH FAQ
What is the ChartMill fundamental rating of SYNEOS HEALTH INC (SYNH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SYNH.
What is the valuation status of SYNEOS HEALTH INC (SYNH) stock?
ChartMill assigns a valuation rating of 7 / 10 to SYNEOS HEALTH INC (SYNH). This can be considered as Undervalued.
Can you provide the profitability details for SYNEOS HEALTH INC?
SYNEOS HEALTH INC (SYNH) has a profitability rating of 6 / 10.
What is the financial health of SYNEOS HEALTH INC (SYNH) stock?
The financial health rating of SYNEOS HEALTH INC (SYNH) is 4 / 10.
Can you provide the expected EPS growth for SYNH stock?
The Earnings per Share (EPS) of SYNEOS HEALTH INC (SYNH) is expected to decline by -25.43% in the next year.