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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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SYNH had positive earnings in the past year.
In the past year SYNH had a positive cash flow from operations.
In the past 5 years SYNH has always been profitable.
SYNH had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (0.88%) than 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.
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 13.62%.
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

SYNH has a better Profit Margin (1.31%) 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.
SYNH's Gross Margin of 22.14% is on the low side compared to the rest of the industry. SYNH is outperformed by 84.38% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYNH 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.
The Altman-Z score of SYNH (1.46) is comparable to the rest of the industry.
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 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 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.
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.
Looking at the Quick ratio, with a value of 1.20, SYNH is doing worse than 82.81% of the companies in the same industry.
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%.
The Earnings Per Share has been growing by 13.74% on average over the past years. This is quite good.
SYNH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
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

The Earnings Per Share is expected to grow by 3.17% on average over the next years.
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

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

A Price/Earnings ratio of 11.37 indicates a reasonable valuation of SYNH.
Based on the Price/Earnings ratio, SYNH is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.52. SYNH is valued rather cheaply when compared to this.
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
SYNH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
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

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 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%