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Synthomer plc (LON:SYNT) Has Attractive Fundamentals

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Synthomer plc (LON:SYNT) due to its excellent fundamentals in more than one area. SYNT is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Synthomer here.

Solid track record with excellent balance sheet

In the previous year, SYNT has ramped up its bottom line by 35%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future. SYNT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that SYNT manages its cash and cost levels well, which is a crucial insight into the health of the company. SYNT seems to have put its debt to good use, generating operating cash levels of 0.31x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

LSE:SYNT Income Statement, May 15th 2019
LSE:SYNT Income Statement, May 15th 2019

Next Steps:

For Synthomer, I've put together three key factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for SYNT’s future growth? Take a look at our free research report of analyst consensus for SYNT’s outlook.

  2. Valuation: What is SYNT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SYNT is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SYNT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.