SYNEOS HEALTH INC (SYNH) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SYNH • US87166B1026

42.98 USD
+0.01 (+0.02%)
At close: Sep 27, 2023
42.97 USD
-0.01 (-0.02%)
After Hours: 9/27/2023, 8:00:01 PM
Fundamental Rating

4

Overall SYNH gets a fundamental rating of 4 out of 10. We evaluated SYNH against 57 industry peers in the Life Sciences Tools & Services industry. SYNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. SYNH is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • SYNH had positive earnings in the past year.
  • SYNH had a positive operating cash flow in the past year.
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 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M 300M 400M

1.2 Ratios

  • SYNH's Return On Assets of 0.88% is fine compared to the rest 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.
  • The Return On Invested Capital of SYNH (4.23%) is better than 70.31% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SYNH is significantly below the industry average of 13.77%.
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 2016 2017 2018 2019 2020 2021 2022 0 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.31%, SYNH is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SYNH has grown nicely.
  • The Operating Margin of SYNH (6.33%) is better than 65.63% of its industry peers.
  • SYNH's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 22.14%, SYNH is doing worse than 84.38% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SYNH has remained more or less at the same level.
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 2016 2017 2018 2019 2020 2021 2022 0 10 20

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYNH is destroying value.
  • The number of shares outstanding for SYNH has been reduced compared to 1 year ago.
  • Compared to 1 year ago, SYNH has an improved debt to assets ratio.
SYNH Yearly Shares OutstandingSYNH Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 1.46, we must say that SYNH is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.46, SYNH perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
  • 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.
  • SYNH has a better Debt to FCF ratio (16.71) than 65.63% of its industry peers.
  • A Debt/Equity ratio of 0.77 indicates that SYNH is somewhat dependend on debt financing.
  • SYNH has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: SYNH underperforms 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 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.
  • The Quick ratio of SYNH (1.20) is worse than 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 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

4

3. Growth

3.1 Past

  • The earnings per share for SYNH have decreased strongly by -23.79% in the last year.
  • SYNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.74% yearly.
  • 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.
  • Based on estimates for the next years, SYNH will show a small growth in Revenue. The Revenue will grow by 1.71% on average per year.
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.
  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.37 indicates a reasonable valuation of SYNH.
  • Compared to the rest of the industry, the Price/Earnings ratio of SYNH indicates a rather cheap valuation: SYNH is cheaper than 100.00% of the companies listed in the same industry.
  • SYNH is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 10.48, the valuation of SYNH can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, SYNH is valued cheaper than 100.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SYNH to the average of the S&P500 Index (25.57), we can say 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 10 20 30

4.2 Price Multiples

  • 95.31% of the companies in the same industry are more expensive than SYNH, based on the Enterprise Value to EBITDA ratio.
  • 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

PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%

0

5. Dividend

5.1 Amount

  • No dividends for SYNH!.
Industry RankSector 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.