Syneos Health Intrinsic Stock Value – SYNEOS HEALTH Reports Slight Increase of 0.4% in Total Revenue for Q2 of 2023
August 12, 2023
☀️Earnings Overview
On August 9, 2023, SYNEOS HEALTH ($NASDAQ:SYNH) released its financial results for the second quarter ended June 30, 2023; total revenue for the quarter was USD 1366.1 million, a 0.4% increase from the same period in the previous year. Unfortunately, net income decreased significantly by 99.0%, amounting to only USD 0.79 million.
Analysis – Syneos Health Intrinsic Stock Value
GoodWhale recently conducted an analysis on the wellbeing of SYNEOS HEALTH, a global biopharmaceutical services organization. Upon inspection, GoodWhale’s proprietary Valuation Line determined that the fair value of a SYNEOS HEALTH share is around $71.5. However, currently the stock is trading at only $42.6 – a nearly 40.5% discount to its fair value. This provides a promising opportunity for investors to take advantage of this undervalued stock and potentially see a long-term return. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Syneos Health. More…
| Total Revenues | Net Income | Net Margin |
| 5.42k | 71.22 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Syneos Health. More…
| Operations | Investing | Financing |
| 252.93 | -101.1 | -178.49 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Syneos Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.08k | 4.58k | 33.69 |
Key Ratios Snapshot
Some of the financial key ratios for Syneos Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.9% | 2.6% | 3.6% |
| FCF Margin | ROE | ROA |
| 3.0% | 3.5% | 1.5% |
Peers
The company competes with Shin Nippon Biomedical Laboratories Ltd, Icon PLC, and Guardant Health Inc, among a few other companies in the biopharmaceutical services industry. Syneos Health Inc provides an end-to-end solution for customers with deep expertise and a focus on service excellence.
– Shin Nippon Biomedical Laboratories Ltd ($TSE:2395)
Shin Nippon Biomedical Laboratories Ltd, or SNBL, is a Japanese-based company specializing in the development and manufacture of laboratory animal models for the pharmaceutical and medical industries. The company has a market cap of 94.46B as of 2022, which reflects its strong financial performance and industry leadership. Additionally, SNBL has a Return on Equity of 27.97%, indicating a strong return on its investments. SNBL is well-positioned to continue to deliver strong returns for investors and to remain a leader in the laboratory animal model industry.
– Icon PLC ($NASDAQ:ICLR)
Icon PLC, founded in 1977, is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. Based in Dublin, Ireland, the company operates in over 30 countries and employs over 11,500 professionals. With a market capitalization of 15.9 billion as of 2022, Icon PLC is one of the largest companies in its space. The company boasts a Return on Equity of 4.96%, indicating a strong level of profitability and efficient use of capital. Icon PLC focuses on providing a wide range of services such as clinical trial management, regulatory affairs outsourcing, safety and pharmacovigilance, biometrics, and medical writing.
– Guardant Health Inc ($NASDAQ:GH)
Guardant Health Inc is a biotechnology company based in Redwood City, California, and is focused on developing non-invasive cancer diagnostics. The company has a market cap of 4.75 billion as of 2022. Guardant Health Inc had a return on equity of -150.22%, which illustrates that the company had a negative profitability from its investments. This suggests that the company has not been able to generate enough profits from its investments to cover its cost of capital and grow its value for shareholders. Although this is not a positive sign for investors, it may be a sign that the company is investing heavily into research and development of new products and technologies that could eventually bring profits in the future.
Summary
SYNEOS HEALTH reported total revenue of USD 1366.1 million in the second quarter of 2023, a slight increase compared to the same period last year. However, net income for the quarter decreased significantly by 99.0% to USD 0.79 million. Investors may want to take into account this concerning trend when considering the company for potential investments. It is important to review additional financial statements, as well as current market and industry trends, before making any investing decisions.
