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Synthomer
(LSE:SYNT)
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Rating:53Neutral
Price Target:
111.00 p
▲(14.43% Upside)
Action:Reiterated
Date:08/04/26
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.
Positive Factors
Revenue and margin expansion
Broad-based revenue growth, higher volumes and expanding EBITDA margins indicate improving operating performance across the portfolio. If sustained, this combination can strengthen earnings quality, support reinvestment and improve resilience against uneven demand over the next several quarters.
Negative Factors
Sustained losses and revenue decline
Recent revenue contraction and several years of operating and net losses show that the improved outlook has not yet translated into durable profitability. Continued weak earnings can constrain internal investment, erode equity value over time and leave results more exposed to execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Broad-based revenue growth, higher volumes and expanding EBITDA margins indicate improving operating performance across the portfolio. If sustained, this combination can strengthen earnings quality, support reinvestment and improve resilience against uneven demand over the next several quarters.
Read all positive factors
Synthomer (SYNT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£169.85M
Dividend Yield9.77%
Average Volume (3M)805.35K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-4.98%
EPS Growth-43.98%
CountryUK
Employees3,800
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.73
Shares Outstanding163,997,630
10 Day Avg. Volume406,082
30 Day Avg. Volume805,353
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.11
Price to Sales (P/S)0.06
P/FCF Ratio2.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£118.75Price Target Upside22.42% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.08
Revenue Forecast (FY)£1.88B
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...
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 suppl...
Synthomer Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Revenue Growth Above Expectations
Group revenue grew ~5% in constant currency (reported revenue GBP 954m, +6.7% Y/Y), driven by all three divisions and a 2.3% increase in overall volumes.
Negative Updates
Reliability Issues at Key Manufacturing Sites
Intermittent reliability problems at the Longview (Texas) and Middelburg (Netherlands) sites impacted Adhesive Solutions in H1; management estimates around GBP 10m gross margin lost in H1 and noted remediation is underway with Middelburg back up and running.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Expectations
Group revenue grew ~5% in constant currency (reported revenue GBP 954m, +6.7% Y/Y), driven by all three divisions and a 2.3% increase in overall volumes.
Read all positive 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
Income Statement
28
Negative
Balance Sheet
54
Neutral
Cash Flow
49
Neutral
| 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 | 169.40M | 137.00M | 83.00M | 113.40M | 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
Positive
97.00
Price Trends
95.17
Positive
94.12
Positive
69.62
Positive
Market Momentum
2.61
Negative
56.97
Neutral
56.94
Neutral
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 97 is below the 20-day moving average (MA) of 101.90, above the 50-day MA of 95.17, and above the 200-day MA of 69.62, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £879.78M | -43.39 | -4.95% | 2.69% | -1.24% | -166.15% | |
68 Neutral | £221.32M | 8.90 | 18.18% | 1.79% | 14.35% | 3370.14% | |
62 Neutral | £4.56B | 56.65 | 3.65% | 3.46% | 3.36% | -43.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £995.86M | 18.05 | 11.29% | 1.92% | -11.73% | ― | |
55 Neutral | £301.64M | 56.84 | 2.02% | 1.97% | 6.98% | -41.36% | |
53 Neutral | £169.85M | -1.45 | -13.27% | 9.77% | -4.98% | -43.98% |
* Basic Materials Sector Average
GB:SYNT
Synthomer
106.00
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76.67%
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GB:ZTF
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Synthomer Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Synthomer lifts 2026 outlook as speciality pivot drives stronger first-half profits
Positive
Aug 4, 2026
Synthomer 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 benefited ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Synthomer ties CEO awards to turnaround, share price recovery targets
Positive
Jun 26, 2026
Synthomer has granted new performance share plan awards and a substantial one-off retention package to chief executive Michael Willome, aligning his incentives with financial, strategic and sustainability targets. The PSP awards, covering 2026 to ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Synthomer AGM backs all resolutions as investors flag concern over CEO retention pay
Neutral
Jun 22, 2026
Synthomer shareholders approved all resolutions at the latest annual general meeting, including the adoption of the 2025 financial statements, renewal of the authority to allot shares, and multiple board elections and re-elections, confirming Pric...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Synthomer lifts H1 performance, accelerates transformation amid volatile markets
Positive
Jun 22, 2026
Synthomer reported strong first-half trading in 2026, with volume, revenue, EBITDA and margins up across its continuing operations, driven by improving momentum in Coatings Construction Solutions and stable Adhesive Solutions. The company highlig...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Synthomer exits upstream acrylate monomers in push toward speciality focus
Positive
Jun 19, 2026
Synthomer has agreed to sell Synthomer a.s., its Acrylate Monomers business in the Czech Republic, to German investment group Mutares SE Co. KGaA, removing its last upstream base chemicals asset. The unit, a major European supplier of acrylic aci...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.