Synectics (SNX) AI Stock Analysis

• Market Cap: £53.24M
• Dividend Yield: 1.48%
• Average Volume (3M): 34.74K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.79
• Revenue Growth: 21.43%
• EPS Growth: 44.70%
• Country: UK
• Employees: 290
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.16
• Shares Outstanding: 17,794,440
• 10 Day Avg. Volume: 42,787
• 30 Day Avg. Volume: 34,736
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £354.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: 354.00p ▲(11.50% Upside)

Synectics' strong financial performance is the primary driver of its stock score, supported by solid revenue growth and cash flow generation. The technical analysis indicates a stable but neutral trend, while the valuation suggests the stock is fairly priced with a reasonable dividend yield. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Synectics Business Overview & Revenue Model

Company Description

Synectics plc engages in the design, integration, and support of security and surveillance systems in the United Kingdom and internationally. It operates through Systems and Security divisions. The Systems division provides integrated electronic surveillance systems based on its own proprietary technology for gaming, transport, critical infrastructure, public space, and oil & gas applications. The Security division is involved in design, integration, monitoring, and management of large-scale electronic security systems to infrastructure, transport, and public space applications. The company was formerly known as Quadnetics Group plc and changed its name to Synectics plc in July 2012. Synectics plc was incorporated in 1983 and is headquartered in Sheffield, the United Kingdom.

How the Company Makes Money

Synectics generates revenue through multiple channels, primarily by selling its security and surveillance systems and software solutions to various industries. The company earns money through direct product sales, service contracts for installation and maintenance, and ongoing software licensing fees. Additionally, Synectics has established significant partnerships with global technology providers and integrators, which enhance its market reach and allow for collaborative product development. The company also benefits from recurring revenue streams through service agreements and upgrades, ensuring a steady flow of income from existing clients.

Synectics Financial Statement Overview

Summary

Synectics exhibits strong financial performance with improvements in revenue, profitability, and cash flow generation. The company maintains a healthy balance sheet with minimal leverage and a solid equity base. Despite past earnings volatility, recent trends indicate a positive trajectory in financial health.

Income Statement

Synectics has shown a strong revenue growth rate of 13.60% from the previous year, along with increasing profitability. The gross profit margin is at 42.89%, and the net profit margin has improved to 5.69%. EBIT and EBITDA margins are also healthy, indicating effective cost management and operational efficiency. However, previous years showed volatility in earnings, with significant losses in 2020.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.05, indicating minimal leverage. The equity ratio is strong at 62.78%, reflecting a solid capital structure. Return on Equity stands at 7.69%, showcasing decent returns for shareholders. The company has managed to maintain a stable financial position over the recent years, although historical data shows fluctuating equity levels.

Cash Flow

Cash flow generation has improved significantly, with a free cash flow growth rate of 301.22% over the previous year. The operating cash flow to net income ratio is 2.68, demonstrating strong cash generation relative to earnings. Free cash flow to net income ratio is 2.07, indicating efficient conversion of earnings into cash. This cash flow strength supports future investment and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.81M	49.13M	39.12M	43.59M	44.65M
Gross Profit	23.94M	20.01M	16.63M	15.60M	14.59M
EBITDA	5.65M	4.53M	3.29M	1.67M	-3.94M
Net Income	3.18M	2.16M	639.00K	-479.00K	-4.67M
Balance Sheet
Total Assets	65.84M	57.62M	52.42M	54.14M	59.81M
Cash, Cash Equivalents and Short-Term Investments	9.56M	4.60M	4.26M	4.64M	6.86M
Total Debt	1.89M	1.94M	2.82M	2.84M	2.79M
Total Liabilities	24.51M	18.75M	15.42M	18.79M	22.78M
Stockholders Equity	41.33M	38.88M	37.00M	35.34M	37.03M
Cash Flow
Free Cash Flow	6.59M	1.64M	915.00K	-1.48M	4.53M
Operating Cash Flow	8.52M	3.02M	1.23M	-607.00K	5.75M
Investing Cash Flow	-1.93M	-1.39M	-582.00K	-842.00K	-1.22M
Financing Cash Flow	-1.61M	-1.17M	-1.17M	-1.02M	-1.15M

Synectics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 317.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNX, the sentiment is Neutral. The current price of 317.5 is above the 20-day moving average (MA) of 316.62, above the 50-day MA of 313.72, and below the 200-day MA of 320.79, indicating a neutral trend. The MACD of 2.48 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 23.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SNX.

Synectics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	75 Outperform	£53.24M	12.24	10.49%	1.48%	21.43%	44.70%
JNEO	73 Outperform	90.61M	19.17	26.10%	―	7.52%	47.21%
NWT	69 Neutral	8.69M	13.10	0.00%	―	3.41%	393.71%
CSSG	68 Neutral	10.33M	16.97	0.00%	2.28%	6.44%	-82.88%
PEG	61 Neutral	5.16M	-10.12	-17.62%	―	63.81%	71.62%
THRU	45 Neutral	6.12M	-0.49	0.00%	―	-46.72%	-48.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Synectics Corporate Events

Synectics Executives Exercise Share Options Reflecting Strategic Alignment

Synectics plc announced that CEO Amanda Larnder and Chief Strategy Officer David Aindow exercised options over a total of 82,000 ordinary shares under the company’s Performance Share Plan. Following the exercise, shares were issued net of tax liabilities, with Aindow selling his shares immediately. This move reflects the company’s ongoing commitment to aligning executive interests with shareholder value.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £356.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics PDMRs Increase Stake Through ESAP Share Purchase

Synectics plc announced that its Employee Share Acquisition Plan (ESAP) reinvested the company’s interim dividend to purchase 795 ordinary shares. This transaction resulted in PDMRs, including Business Strategy Director David Aindow and Group Director of HR Clare Bryan-Wright, acquiring additional shares, reflecting their ongoing commitment to the company’s growth and stability.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £356.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Secures Major Gaming Contracts in Asia and North America

Synectics plc has secured two significant gaming contracts worth approximately US$3.0 million, marking a strategic expansion in both Asia and North America. The contracts include a US$2.5 million upgrade of surveillance systems for a major casino resort in Manila and a US$600,000 deployment of their Synergy software at a tribal gaming property in Oklahoma, supporting their growth objectives and reinforcing revenue for the current financial year.

Synectics Reports Strong H1 2025 Financial Performance and Strategic Progress

Synectics plc reported a robust financial performance for the first half of 2025, with a 35% increase in revenue to £35.5 million and a 48% rise in underlying operating profit to £3.3 million. The company attributes this growth to strong demand in the leisure and hospitality sector and significant contract wins, including deals with West Midlands Police and a major gaming resort in South-East Asia. Synectics remains debt-free with a solid cash position, enabling it to support organic growth and strategic acquisitions. The company is executing a refreshed strategy focused on expanding market presence, investing in technology, and strengthening its partner network, positioning itself for long-term growth and value creation.

Synectics Appoints New CFO to Drive Growth

Synectics plc has announced the appointment of Paul Williams as Chief Financial Officer, effective from August 26, 2025. Williams brings extensive experience from the IT and software sectors, having served as CFO at CloudCall and other notable companies. His expertise is expected to drive internal efficiency and scalability at Synectics during a pivotal growth phase.