Synchronoss Technologies Inc (NASDAQ: SNCR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001131554
Market Cap 93.73 Mn
P/B 1.69
P/E -9.64
P/S 0.55
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

Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.96 2.69
EV to Cash from Ops. EV/CFO 4.86 28.91
EV to Debt EV to Debt 1.54 19.83
EV to EBIT EV/EBIT 13.40 -9.95
EV to EBITDA EV/EBITDA 5.87 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 6.55 26.09
EV to Market Cap EV to Market Cap 2.85 0.36
EV to Revenue EV/Rev 1.56 -9.34
Price to Book Value [P/B] P/B 1.69 3.88
Price to Earnings [P/E] P/E -9.64 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 0.79 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 4.59 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 38.05 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 302.57 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 39.19 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 238.88 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 82.59 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 76.86 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 45,950.56 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.26 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.61 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.87 1.22
Current Ratio Curr Ratio (Qtr) 1.53 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 3.13 -0.96
Interest Cover Ratio Int Coverage (Qtr) 0.79 -14.20
Times Interest Earned Times Interest Earned (Qtr) 0.79 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.80 -548.16
EBIT Margin % EBIT Margin % (Qtr) 11.67 -199.84
EBT Margin % EBT Margin % (Qtr) -3.10 -607.20
Gross Margin % Gross Margin % (Qtr) 79.10 51.88
Net Profit Margin % Net Margin % (Qtr) -5.70 -610.00