Synthomer Share Discussion Threads

[tole] 17/4/2023 06:38

https://citywire.com/funds-insider/news/expert-view-travis-perkins-foresight-synthomer-norcros-and-devolver/Berenberg: Synthomer is cheap whichever way you lookChemicals group Synthomer (SYNT) may have had a tough 2022 but Berenberg says end-markets have troughed and there is recovery potential.Analyst Sebastian Bray retained his 'buy' recommendation but reduced the target price from 170p to 150p on the stock, which gained 1%, or 1.3p, to 123.1p on Friday.He said full-year 2022 results were 'weak and highlighted operational issues with acquired Eastman assets, but indications are that end-markets have troughed', and the company can rely on its 'valuation margin of safety to absorb downgrades'.'It says much about the inexpensiveness of shares in Synthomer that we can halve our earnings per share estimates after a lacklustre trading update and still be left with a comfortable margin of safety,' said Bray.'Our two-year price/earnings and free cashflow yield of nine times and 11%, respectively, are at the cheaper end of the chemicals sector.'He said the shares could become even cheaper if he is correct in his forecast for nitrile latex earnings to return to the £55m the division made in 2019.'Our base case is £21m in 2025, owing to long-term pressure imposed by additional Chinese supply; however, commodity chemicals prices have a habit of overshooting expectations, in both directions, and in a "recovery to the normal" scenario, we estimate the price/earnings would be six times and the free cashflow yield 16-40% cheaper than historical averages.'

[mr euro] 11/4/2023 16:22

Back in today with a chunky buy. A few signs the bottom is in and we may have turned the corner.

[mrminister] 29/3/2023 08:20

directors doing the decent thing yesterday , buying at silly prices .....nice

[justiceforthemany] 28/3/2023 13:28

Investors Chronicle View
The last IC recommendation on Synthomer PLC shares was Buy at 109.00 on 28 Mar 2023
Read the full article

[justiceforthemany] 28/3/2023 13:06

NAV 221p
Trading at under half its book price

Kuala Lumpur holding >26% stake
Another 3.5% or so and they will have to table an offer.

[lonrho] 28/3/2023 12:41

Underlying p/e a lot more than 5 based on second half.

[justiceforthemany] 28/3/2023 12:01

Underlying EPS around 22p hence P/E just 5

[montyhedge] 28/3/2023 11:33

Surprised you're in this, had a look, I don't like it.

[bubloo] 28/3/2023 10:48

around 95 to 100 pence would be a good entry for recovery in a years time

[libertine] 28/3/2023 09:47

JPMorgan reinitiates Synthomer with 'neutral' - price target 160 pence

[aringadingding] 28/3/2023 09:22

Anyone know analyst forecasts for eps?

I suspect this is a classic example of it being good news when a share price falls i.e. buy more if it's priced in

[tuftymatt] 28/3/2023 09:07

I am with you reddirish and will tuck these away and forget about them.

My average is an ugly 170 but in Feb we were at 160 so who knows if it will get back there later this year or be at 60p!!

Good luck all 👍🏻

[reddirish] 28/3/2023 09:03

The main unpleasant surprise here is the poor performance of, and goodwill write down in, the new Adhesives division, though is it a surprise that an over exuberant management overpaid for an acquisition when they were feeling invincible in the midst of the COVID nitrile boom? Margins suffering, so they are unable to raise prices in line with costs, and it will be important to understand how much extra industry capacity was drawn in by that boom, which will shape future margin recovery. I bought some more when the price fell to the 80's after the previous results, but no more. I'll be holding on though; it will be a the 3 year recovery period that SYNT ( and my holding) now face. I need some good news in my portfolio, somewhere....

[owenski] 28/3/2023 08:58

Eye watering debt, lot of waffle from the CEO too.

[mrminister] 28/3/2023 08:18

17% in 15 mins ....poor

[scepticalinvestor] 28/3/2023 08:09

Oof bargepole

[queenbreguet] 28/3/2023 08:06

Market does not like them either

[justiceforthemany] 28/3/2023 08:00

Trading at just 5x earnings though

[queenbreguet] 28/3/2023 07:54

Final results seem pretty dire to me

[tuftymatt] 28/3/2023 07:41

The sale is recorded after the year end so debt is reduced. There is a mention of it in the report.

[muzmanoz] 28/3/2023 07:39

So net debt is £1,024.9 after the sale proceeds of the Laminates films and coated fabrics business? Had expected it to be below that level.

[tuftymatt] 23/3/2023 15:57

Results next Tuesday.

Given time, a year, I think this can be back at 200. Would come quicker if the divi gets reinstated but I think the business is a fair way from that right now.

Good luck all 👍🏻

[sdt7618] 23/3/2023 15:51

ehhh given that last one was cancelled do you?

[montyhedge] 23/3/2023 15:45

Do you think dividend is safe ?

[tuftymatt] 15/3/2023 10:58

No confidence in strong companies so those that have had recent issues are way down on peoples shopping lists is how I read it.

Quality results in high yielding companies have seen big falls due to the banking issues out there so this is viewed as high risk but when risk sentiment is very low.