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Synthomer (SYNT) AI Stock Analysis
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Synthomer
(LSE:SYNT)
The score is held back primarily by weak financial performance (sustained losses and uneven revenue/cash-flow history) and a constrained valuation signal due to a negative P/E. These are partially offset by improving balance-sheet actions and a constructive earnings-call update with upgraded FY2026 guidance and a clearer deleveraging/free-cash-flow trajectory, while technicals remain only moderately supportive.
Synthomer (SYNT) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 181.98M
- Dividend Yield
- ―
- Average Volume (3M)
- 765.73K
- Price to Earnings (P/E)
- -1.5
- Beta (1Y)
- 1.38
- Revenue Growth
- -4.98%
- EPS Growth
- -43.98%
- Country
- UK
- Employees
- 3,800
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
Synthomer Business Overview & Revenue Model
Company Description
Synthomer plc functions as a leading producer of specialty chemicals, with its operations organized into four primary divisions: Performance Elastomers, Functional Solutions, Industrial Specialities, and Acrylate Monomers. The company develops and su...
How the Company Makes Money
Synthomer makes money primarily by manufacturing and selling specialty polymer products (e.g., latex and other performance polymer solutions) to industrial customers and formulators. Revenue is generated from (1) product sales under customer supply a...
Synthomer Earnings Call Summary
The call communicated a broadly positive operational and financial momentum: revenue and EBITDA growth, meaningful margin expansion across divisions (notably CCS), progress on strategic transformation (divestments and AS savings), a strengthened refinancing position and an upgraded full‑year outlook. However, the positives are tempered by several material constraints — intermittent manufacturing reliability issues that cost c. GBP 10m in H1, elevated net debt and interest costs, working capital seasonality and the fact that ~GBP 6m of H1 EBITDA reflected one‑off market disruption that management does not expect to repeat. Management plans further divestments (targeting GBP 150m–200m proceeds), expects improved free cash flow (excluding receivable financing) and forecasts lower year‑end leverage (4.0x–4.35x), supporting an overall improvement trajectory.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management upgraded full‑year 2026 guidance: after a strong H1 (continuing revenue GBP 954m, volumes +2.3%, reported EBITDA up 13% and group EBITDA margin 10.1%), they now expect FY performance “slightly ahead of current market expectations” and well ahead of last year, underpinned by an estimated recurring EBITDA uplift of ~GBP 8m to continue into H2 (with a GBP 6m Q2 disruption benefit not expected to recur). They expect to be free cash flow positive for the year excluding receivables‑financing movements, to reduce net debt from GBP 671m (30 June) and leverage of 4.9x to between 4.0–4.35x by year‑end, and to realize further deleveraging from ongoing disposals (Acrylate Monomers closing end‑September; total disposal proceeds targeted at ~GBP 150–200m). Financial assumptions include FY CapEx c. GBP 70m (H1 GBP 33.5m), P&L finance costs c. GBP 73–75m (cash interest ~GBP 65m), full‑year special items c. GBP 60–65m (≈2/3 amortisation of intangibles), committed liquidity ~GBP 270m and covenant headroom under the new facilities (year‑end covenant 6.25x).
Synthomer Financial Statement Overview
Summary
Overall fundamentals remain pressured by multi-year losses and declining/volatile revenue (income statement weak), partially offset by meaningful debt reduction by 2025 (balance sheet improving) and a rebound in operating/free cash flow in 2025 after a negative 2024 (cash flow volatile).
Income Statement
28NegativeBalance Sheet
54NeutralCash Flow
49Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.77B | 1.74B | 1.99B | 1.97B | 2.33B | 2.14B |
| Gross Profit | 272.80M | 167.40M | 337.70M | 307.30M | 281.00M | 569.70M |
| EBITDA | 115.70M | 93.10M | 83.00M | 65.40M | 139.40M | 394.40M |
| Net Income | -120.40M | -157.00M | -72.60M | -67.00M | -32.50M | 208.70M |
Balance Sheet | ||||||
| Total Assets | 2.40B | 2.28B | 2.54B | 2.71B | 3.15B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 182.60M | 189.90M | 225.80M | 371.30M | 227.70M | 505.30M |
| Total Debt | 893.90M | 818.50M | 878.70M | 926.30M | 1.30B | 663.00M |
| Total Liabilities | 1.47B | 1.37B | 1.43B | 1.54B | 2.11B | 1.52B |
| Stockholders Equity | 914.40M | 900.80M | 1.09B | 1.15B | 1.02B | 1.02B |
Cash Flow | ||||||
| Free Cash Flow | -16.60M | 36.60M | -124.10M | 66.00M | 45.00M | 193.20M |
| Operating Cash Flow | 65.50M | 124.30M | -33.50M | 150.00M | 135.80M | 275.40M |
| Investing Cash Flow | -78.20M | -65.00M | -61.70M | 107.70M | -850.10M | -78.60M |
| Financing Cash Flow | -83.10M | -96.80M | -45.90M | -90.90M | 414.50M | 118.50M |
Synthomer Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYNT, the sentiment is Positive. The current price of 111.00 is below the 20-day moving average (MA) of 111.35, above the 50-day MA of 107.42, and above the 200-day MA of 78.27, indicating a neutral trend. The MACD of 1.67 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SYNT.
Synthomer Peers Comparison
Overall Rating
GB:ZTF77Outperform
GB:ELM73Outperform
GB:CRDA66Neutral
GB:VCT59Neutral- GB:SYNT53Neutral
GB:ESNT53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:ZTF | 77Outperform | GBP 232.14M | 9.44 | 18.18% | 1.69% | 14.35% | 3370.14% |
| GB:ELM | 73Outperform | GBP 1.06B | 19.35 | 11.29% | 1.78% | -11.73% | ― |
| GB:CRDA | 66Neutral | GBP 5.09B | 64.43 | 3.65% | 3.05% | 3.36% | -43.08% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| GB:VCT | 59Neutral | GBP 786.60M | -39.26 | -4.95% | 2.97% | -1.24% | -166.15% |
| GB:SYNT | 53Neutral | GBP 181.98M | -1.52 | -13.27% | ― | -4.98% | -43.98% |
| GB:ESNT | 53Neutral | GBP 320.53M | 59.68 | 2.02% | 1.85% | 6.98% | -41.36% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:SYNT | Synthomer plc | 111.00 | 58.70 | 112.24% | |
| GB:CRDA | Croda International | 3644.00 | 919.53 | 33.75% | |
| GB:ELM | Elementis plc | 187.20 | 25.84 | 16.01% | |
| GB:ESNT | Essentra plc | 113.40 | 19.87 | 21.24% | |
| GB:VCT | Victrex plc | 903.00 | 319.23 | 54.68% | |
| GB:ZTF | Zotefoams plc | 472.00 | 30.70 | 6.96% |
Synthomer Corporate Events
Synthomer stays on track with upgraded 2026 outlook as speciality push gathers pace
PositiveSynthomer, a leading speciality polymers supplier serving coatings, construction, adhesives and health-related markets, reported that its third-quarter performance in 2026 was in line with upgraded full-year expectations, with continued growth in vol...
Synthomer Director Takes Board Role at Malaysia-Listed Palm Oil Company
NeutralSynthomer plc has disclosed that non-independent non-executive director Dato’ Lee Hau Hian has joined the board of MKH Oil Palm (East Kalimantan) Berhad as a non-independent non-executive director. The appointment links Synthomer’s govern...
Synthomer completes sale of Czech Acrylate Monomers unit
PositiveSynthomer plc has completed the divestment of Synthomer a.s., the Czech‑based operating company for its Acrylate Monomers business, following the terms set out in June 2026. The Acrylate Monomers unit had already been classified as a discontinu...
Synthomer lifts 2026 outlook as speciality pivot drives stronger first-half profits
PositiveSynthomer reported a stronger-than-expected first half of 2026, with revenue from continuing operations up 5.1% in constant currency and volumes rising 2.3%, as all three divisions contributed to growth. Coatings & Construction Solutions benefite...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 04, 2026