Synergy CHC Corp. (NASDAQ: SNYR)

Sector: Healthcare Industry: Medical Distribution CIK: 0001562733
Market Cap 14.50 Mn
P/B -1.76
P/E 5.62
P/S 0.42
ROIC (Qtr) 43.46
Div Yield % 0.00
Rev 1y % (Qtr) 12.40
Total Debt (Qtr) 25.11 Mn
Debt/Equity (Qtr) -3.04
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About

Investment thesis

Bull case

  • Tangible assets of 20.51M provide exceptional 11061.28x coverage of deferred revenue 1854, showing strong service capability backing.
  • Operating cash flow of (6.64M) fully covers other non-current liabilities (1854) by 3578.78x, showing strong long-term stability.
  • Short-term investments of 4.41M provide solid 17.18x coverage of other current liabilities 256617, indicating strong liquidity.
  • Tangible assets of 20.51M provide robust 79.92x coverage of other current liabilities 256617, indicating strong asset backing.
  • Retained earnings of (41.62M) represent substantial 5.04x of equity (8.25M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of (6.64M) provides insufficient coverage of deferred revenue obligations of 1854, which is -3578.78x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (6.64M) shows concerning coverage of stock compensation expenses of 137917, with a -48.11 ratio indicating potential earnings quality issues.
  • Short-term investments of 4.41M significantly exceed cash reserves of 1.11M, which is 3.98x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of (6.64M) provides minimal -42.71x coverage of tax expenses of 155353, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High receivables of 9M relative to inventory of 2.15M (4.19 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCK Mckesson Corp 117.90 Bn 27.17 0.30 8.62 Bn
2 CAH Cardinal Health Inc 80.96 Bn 103.48 0.82 9.03 Bn
3 COR Cencora, Inc. 79.51 Bn 93.02 0.52 7.92 Bn
4 HSIC Henry Schein Inc 9.46 Bn 24.20 0.73 3.44 Bn
5 AHG Akso Health Group 0.37 Bn -2.71 24.79 0.00 Bn
6 EDAP Edap Tms Sa 0.17 Bn -7.47 2.30 0.01 Bn
7 QIPT Quipt Home Medical Corp. 0.17 Bn -15.61 0.63 0.11 Bn
8 EMPG Empro Group Inc. 0.12 Bn 157.82 21.62 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.92 1.06
EV to Cash from Ops. EV/CFO -6.00 13.08
EV to Debt EV to Debt 1.59 282.28
EV to EBIT EV/EBIT 4.60 6.31
EV to EBITDA EV/EBITDA 6.28 12.22
EV to Free Cash Flow [EV/FCF] EV/FCF -6.00 15.66
EV to Market Cap EV to Market Cap 2.75 1.21
EV to Revenue EV/Rev 1.15 1.87
Price to Book Value [P/B] P/B -1.76 11.46
Price to Earnings [P/E] P/E 5.62 34.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.67
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.23
Interest Coverage Int. cover (Qtr) 1.46 60.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -12,260.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 207.89 27.05
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.45 -177.28
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -29.54 368.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -5.08 -206.06
EBT Growth (1y) % EBT 1y % (Qtr) -44.40 -173.08
EPS Growth (1y) % EPS 1y % (Qtr) -54.69 -21.54
FCF Growth (1y) % FCF 1y % (Qtr) -472.32 -218.00
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.24 15.84
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.67 1.93
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.29 0.22
Current Ratio Curr Ratio (Qtr) 5.35 1.54
Debt to Equity Ratio Debt/Equity (Qtr) -3.04 -0.33
Interest Cover Ratio Int Coverage (Qtr) 1.46 60.87
Times Interest Earned Times Interest Earned (Qtr) 1.46 60.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.40 -94.80
EBIT Margin % EBIT Margin % (Qtr) 25.01 -102.39
EBT Margin % EBT Margin % (Qtr) 7.91 -105.05
Gross Margin % Gross Margin % (Qtr) 71.10 23.37
Net Profit Margin % Net Margin % (Qtr) 7.50 -86.72