Synchronoss Technologies Inc (NASDAQ: SNCR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001131554
P/B 1.63
P/E -9.29
P/S 0.53
Market Cap 90.28 Mn
ROIC (Qtr) 17.17
Div Yield % 0.00
Rev 1y % (Qtr) -2.24
Total Debt (Qtr) 173.34 Mn
Debt/Equity (Qtr) 3.13

About

Stock Price Chart

Analysis

Pros

  • Operating cash flow of 55.01M provides strong 10.40x coverage of stock compensation 5.29M, indicating sustainable incentive practices.
  • Tangible assets of 70.57M provide exceptional 705.74x coverage of deferred revenue 100000, showing strong service capability backing.
  • Robust free cash flow of 40.81M exceeds capital expenditure of 14.20M by 2.87x, indicating strong organic growth funding capability.
  • Operating cash flow of 55.01M provides strong 550.11x coverage of deferred revenue 100000, indicating service delivery capability.
  • Robust tangible asset base of 70.57M provides 3.33x coverage of working capital 21.20M, indicating strong operational backing.

Cons

  • Operating cash flow of 55.01M barely covers its investment activities of (14.20M), with a coverage ratio of -3.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (14.20M) provide weak support for R&D spending of 41.20M, which is -0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 19.94M show weak coverage of depreciation charges of 17.26M, with a 1.16 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 40.81M represents just -1.36x of debt issuance (29.95M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 55.01M shows concerning coverage of minority interest expenses of (1000), which is -55011x, suggesting complex corporate structure risks.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.95 2.56
EV to Cash from Ops. 4.79 38.32
EV to Debt 1.52 -11.37
EV to EBIT 13.23 -12.79
EV to EBITDA 5.79 7.72
EV to Free Cash Flow [EV/FCF] 6.46 24.22
EV to Market Cap 2.92 0.58
EV to Revenue 1.54 -35.00
Price to Book Value [P/B] 1.63 3.74
Price to Earnings [P/E] -9.29 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.79 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 4.59 -404.11
Cash and Equivalents Growth (1y) % 38.05 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 302.57 31.15
EBITDA Growth (1y) % 39.19 49.02
EBIT Growth (1y) % 238.88 25.85
EBT Growth (1y) % 82.59 17.82
EPS Growth (1y) % 76.86 70.69
FCF Growth (1y) % 45,950.56 295.45
Gross Profit Growth (1y) % 3.26 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.61 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.87 1.21
Current Ratio 1.53 2.57
Debt to Equity Ratio 3.13 -0.93
Interest Cover Ratio 0.79 -13.15
Times Interest Earned 0.79 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 21.80 -544.82
EBIT Margin % 11.67 -197.78
EBT Margin % -3.10 -602.74
Gross Margin % 79.10 52.06
Net Profit Margin % -5.70 -605.52