SYNEOS HEALTH INC (SYNH)
US87166B1026 - Common Stock
Overall SYNH gets a fundamental rating of 5 out of 10. We evaluated SYNH against 58 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of SYNH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on SYNH.
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.
Each year in the past 5 years SYNH has been profitable.
Each year in the past 5 years SYNH had a positive operating cash flow.
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.
Looking at the Return On Invested Capital, with a value of 4.23%, SYNH is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SYNH is significantly below the industry average of 10.73%.
| 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
The Profit Margin of SYNH (1.31%) is better than 70.31% of its industry peers.
SYNH's Profit Margin has improved in the last couple of years.
SYNH has a Operating Margin of 6.33%. This is in the better half 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.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYNH is destroying value.
SYNH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SYNH has been reduced compared to 5 years ago.
SYNH has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.46, SYNH is in line with its industry, 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.
The Debt to FCF ratio of SYNH (16.71) is better 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 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's Current ratio of 1.20 is on the low side compared to the rest of the industry. SYNH is outperformed by 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 has a worse Quick ratio (1.20) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
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.
SYNH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
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 growth Q2Q-54.4%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y4.87%
Revenue growth 5Y15.08%
Revenue growth Q2Q0.39%
3.2 Future
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
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
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
SYNH is valuated reasonably with a Price/Earnings ratio of 11.37.
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.
When comparing the Price/Earnings ratio of SYNH to the average of the S&P500 Index (28.56), we can say SYNH is valued rather cheaply.
The Price/Forward Earnings ratio is 10.48, which indicates a very decent 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 20.34, SYNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 10.48 |
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.
SYNH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SYNH is cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.53 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
SYNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-6.79%
EPS Next 3Y-1.2%
5. Dividend
5.1 Amount
SYNH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SYNEOS HEALTH INC
NASDAQ:SYNH (9/27/2023, 7:00:01 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 10.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 2.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.33% | ||
| PM (TTM) | 1.31% | ||
| GM | 22.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.79%
EPS 3Y13.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y-25.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.01%
Revenue growth 3Y4.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y