Synex Internt'l (SXI) AI Stock Analysis

• Market Cap: C$11.69M
• Dividend Yield: N/A
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 11.71%
• EPS Growth: 39.49%
• Country: CA
• Employees: 7
• Sector: Utilities
• Sector Strength: 89
• Industry: Renewable Utilities
• EPS (TTM): -0.16
• Shares Outstanding: 5,007,281
• 10 Day Avg. Volume: 10,200
• 30 Day Avg. Volume: 8,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score is influenced by significant financial challenges, including negative profitability and high leverage. Despite strong revenue growth and positive corporate events, the company's valuation is a concern due to its negative P/E ratio. Technical analysis shows upward momentum, although the stock is overbought, suggesting potential short-term corrections.

Synex Internt'l Business Overview & Revenue Model

Company Description

Synex International Inc. (SXI) is a company primarily engaged in the development and operation of renewable energy projects. Operating within the clean energy sector, Synex focuses on hydroelectric power generation and related services, contributing to sustainable energy solutions. The company's core products and services include the management and development of small-scale hydroelectric facilities, providing a reliable and eco-friendly energy source.

How the Company Makes Money

Synex International Inc. generates revenue primarily through the production and sale of electricity generated by its hydroelectric facilities. These facilities harness the power of flowing water to produce renewable energy, which is then sold to utility companies and energy markets. The company's revenue model is centered around long-term power purchase agreements (PPAs) with utility companies, ensuring a steady and predictable income stream. Additionally, Synex may engage in the development of new hydroelectric projects, where it earns revenue through project management and consulting services in the renewable energy sector. Partnerships with government agencies and private firms to develop sustainable energy initiatives also contribute to its earnings.

Synex Internt'l Financial Statement Overview

Summary

Synex International is facing significant financial challenges, including negative profitability and high leverage. The company shows a negative net profit margin and EBIT margin, a high debt-to-equity ratio, and weak operating cash flow. While revenue growth is strong, the lack of profitability and high leverage pose long-term risks.

Income Statement

The company shows a negative net profit margin and EBIT margin for the TTM, indicating ongoing difficulties in achieving profitability. Revenue growth was strong with a 11.93% increase from the previous year, but the gross profit margin has declined, suggesting potential inefficiencies or increased costs.

Balance Sheet

The debt-to-equity ratio is high, reflecting a significant reliance on debt financing, which poses a risk, especially with the company's negative net income. The equity ratio has decreased, indicating reduced financial stability. Return on equity is negative, highlighting continued unprofitability.

Cash Flow

Operating cash flow remains weak, but there is a slight improvement in free cash flow in the TTM compared to the previous period. The free cash flow to net income ratio is negative, showing challenges in converting income into cash flow. Overall, cash flow management is a concern.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.68M	2.20M	3.35M	3.53M	3.33M
	Gross Profit
2.17M	2.05M	3.19M	3.34M	3.19M
	EBIT
-461.91K	-1.07M	27.91K	351.33K	156.85K
	EBITDA
295.18K	-295.50K	913.27K	626.52K	1.04M
	Net Income Common Stockholders
-1.20M	-1.75M	-663.63K	-848.62K	-190.75K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
117.36K	318.66K	625.89K	1.07M	859.91K
	Total Assets
18.72M	19.77M	21.73M	23.13M	21.82M
	Total Debt
13.08M	13.72M	14.61M	15.44M	13.29M
	Net Debt
12.96M	13.40M	13.99M	14.37M	12.43M
	Total Liabilities
15.45M	15.87M	16.70M	17.46M	15.24M
	Stockholders Equity
2.89M	3.49M	4.55M	5.08M	5.85M
Cash Flow		Free Cash Flow
-749.59K	-647.19K	297.65K	-562.06K	136.69K
	Operating Cash Flow
-639.36K	-368.70K	568.73K	-363.76K	168.81K
	Investing Cash Flow
-110.23K	-298.49K	-272.32K	73.35K	513.50K
	Financing Cash Flow
265.95K	-195.54K	-801.88K	2.10M	-321.84K

Synex Internt'l Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SXI, the sentiment is Positive. The current price of 2.34 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 1.97, and above the 200-day MA of 1.77, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 74.72 is Negative, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SXI.

Synex Internt'l Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	76 Outperform	C$225.81M	16.73	17.82%	―	15.25%	48.96%
Sector *	63 Neutral	$8.52B	10.99	5.33%	4.38%	3.24%	-11.91%
BLX	61 Neutral	C$3.15B	87.64	2.23%	2.15%	-16.54%	-53.85%
SXI	55 Neutral	C$11.69M	―	-22.66%	―	11.71%	39.49%
GPV	44 Neutral	C$17.69M	―	-218.43%	―	-57.55%	-31.45%
NXO	22 Underperform	C$1.95M	―	17.92%	―	―	83.87%

Synex Internt'l Corporate Events

Synex Renewable Energy Plans Acquisition by Sitka Power

Synex Renewable Energy Corporation announced the filing of a management information circular for a special meeting of shareholders to approve a plan of arrangement with Sitka Power Inc. Under this arrangement, Sitka will acquire all outstanding common shares of Synex for C$2.40 per share, leading to Synex’s delisting from the Toronto Stock Exchange and becoming a wholly-owned subsidiary of Sitka. The board of directors recommends shareholders vote in favor of the arrangement, which is expected to close in the second half of 2025, pending necessary approvals.

Spark’s Take on TSE:SXI Stock

According to Spark, TipRanks’ AI Analyst, TSE:SXI is a Neutral.

The overall stock score is influenced by significant financial challenges, including negative profitability and high leverage. Despite strong revenue growth and positive corporate events, the company’s valuation is a concern due to its negative P/E ratio. Technical analysis shows upward momentum, although the stock is overbought, suggesting potential short-term corrections.

To see Spark’s full report on TSE:SXI stock, click here.

Synex Renewable Energy to be Acquired by Sitka Power for C$25.2 Million

Synex Renewable Energy Corporation announced an agreement to be acquired by Sitka Power Inc. for C$2.40 per share, valuing the company at approximately C$25.2 million. This transaction, which offers a 58% premium over the 20-day volume weighted average price, has been deemed fair and in the best interests of shareholders by Synex’s board. The acquisition provides immediate liquidity and value to shareholders, while Sitka views it as a strategic opportunity to expand its platform.

Synex Renewable Energy Boosts Q2 Revenue and Expands Board with Strategic Appointment

Synex Renewable Energy Corporation reported a significant increase in revenue and net profit for the second quarter of fiscal year 2025, driven by enhanced electricity generation due to favorable weather conditions and a rate increase. The company is actively investing in wind licenses to support clean energy initiatives and has seen an improvement in cash position through collections and a short-term loan. Additionally, Synex appointed Majed Masad to its board of directors, anticipating that his extensive management experience will aid in achieving strategic goals and enhancing shareholder value.