Synergie (SDG) AI Stock Analysis

• Market Cap: €796.25M
• Dividend Yield: 1.51%
• Average Volume (3M): 3.99K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.11
• Revenue Growth: 1.91%
• EPS Growth: -4.82%
• Country: FR
• Employees: 5,600
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 1.19
• Shares Outstanding: 24,362,000
• 10 Day Avg. Volume: 7,069
• 30 Day Avg. Volume: 3,990
• PEG Ratio: -0.81
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): €2.78B

• Rating: 74 Outperform
• Price Target: €37.00 ▲(15.26% Upside)

Synergie's overall stock score is driven by its strong financial performance and reasonable valuation. The company's robust balance sheet and consistent revenue growth are significant strengths. However, challenges in maintaining profit margins and operating cash flow are areas for improvement. The technical analysis suggests short-term bullish momentum, but medium-term resistance remains.

Synergie Business Overview & Revenue Model

Company Description

Synergie SE provides human resources management and development services for companies and institutions in France, Belgium, Other Northern and Eastern Europe, Italy, Spain, Portugal, Canada, and Australia. It offers temporary employment, recruitment, out-placement, social engineering, consultancy, and training services. The company serves various specialized sectors and industries, such as naval and renewable energy, transport and logistics, construction and public works, healthcare, agri-food, tertiary, IT, and communication sectors. It operates in 17 countries through a network of 770 agencies. The company was founded in 1969 and is headquartered in Paris, France.

How the Company Makes Money

Synergie generates revenue primarily through its recruitment services, which include temporary staffing and permanent placement fees. The company charges clients a fee based on a percentage of the candidate's salary for permanent placements and a markup on hourly rates for temporary staff. Additionally, Synergie earns income from outsourcing services, where it manages entire recruitment processes for clients, often under long-term contracts. Key partnerships with businesses across various sectors enable Synergie to maintain a steady stream of clients, while its robust digital platforms and recruitment technologies enhance operational efficiency and client satisfaction, contributing to its overall earnings.

Synergie Financial Statement Overview

Summary

Synergie exhibits strong financial health with consistent revenue growth and a robust balance sheet. However, declining profit margins and operating cash flow highlight areas for improvement. The company is well-positioned in terms of liquidity and financial stability, but needs to address profitability challenges to enhance overall financial performance.

Income Statement

Synergie has demonstrated consistent revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin has decreased significantly, indicating potential cost pressures. Net profit margin has also declined, suggesting challenges in maintaining profitability. EBIT and EBITDA margins have shown slight fluctuations but remain relatively stable.

Balance Sheet

The company's balance sheet is strong, with a healthy equity ratio and a low debt-to-equity ratio, indicating financial stability. Return on Equity (ROE) has decreased, reflecting a decline in profitability. The company maintains a solid cash position, enhancing its ability to manage liabilities.

Cash Flow

Operating cash flow has decreased, but free cash flow remains positive, indicating efficient capital expenditure management. The free cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, the decline in operating cash flow signals potential challenges in cash generation from core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21B	3.18B	3.11B	2.92B	2.70B	2.19B
Gross Profit	157.05M	165.22M	913.22M	320.29M	286.88M	230.26M
EBITDA	14.39B	140.47M	151.81M	160.82M	146.89M	108.61M
Net Income	60.94M	63.14M	74.87M	83.77M	70.89M	38.28M
Balance Sheet
Total Assets	1.53B	1.49B	1.45B	1.37B	1.27B	1.19B
Cash, Cash Equivalents and Short-Term Investments	388.15M	401.01M	393.95M	373.34M	309.19M	256.75M
Total Debt	113.85M	112.32M	113.80M	133.56M	137.28M	143.75M
Total Liabilities	804.34M	768.02M	791.65M	757.70M	716.92M	608.11M
Stockholders Equity	727.76M	719.55M	655.38M	608.08M	546.62M	564.35M
Cash Flow
Free Cash Flow	44.38M	63.63M	92.26M	127.58M	136.33M	123.90M
Operating Cash Flow	57.99M	73.43M	105.21M	133.42M	147.43M	128.24M
Investing Cash Flow	-37.07M	-38.06M	-19.46M	-21.24M	-50.29M	-4.28M
Financing Cash Flow	-40.79M	-15.31M	-54.17M	-53.31M	-48.86M	-23.23M

Synergie Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SDG, the sentiment is Positive. The current price of 32.1 is below the 20-day moving average (MA) of 32.50, below the 50-day MA of 32.13, and above the 200-day MA of 31.62, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 75.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SDG.

Synergie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	76 Outperform	$5.75B	15.42	10.25%	1.85%	4.83%	52.47%
CEN	75 Outperform	€652.73M	9.50	9.42%	10.14%	25.10%	-1.46%
ALFRE	74 Outperform	€122.07M	5.14	14.15%	3.65%	11.26%	53.45%
SDG	74 Outperform	€796.25M	12.55	8.63%	1.51%	1.91%	-4.82%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ALMAR	38 Underperform	€3.33M	-0.35	―	―	-26.73%	42.29%