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Syneos Health

Nasdaq:SYNH
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SYNH
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Syneos Health, Inc. operates as an integrated biopharmaceutical solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The last earnings update was 13 days ago. More info.


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SYNH Share Price and Events
7 Day Returns
2.6%
NasdaqGS:SYNH
-1.5%
US Life Sciences
0.3%
US Market
1 Year Returns
0.2%
NasdaqGS:SYNH
14.1%
US Life Sciences
12.5%
US Market
SYNH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Syneos Health (SYNH) 2.6% -8.3% -0.9% 0.2% -1.5% 119.3%
US Life Sciences -1.5% 2.2% 2.1% 14.1% 83.2% 115.6%
US Market 0.3% 4.1% 5.6% 12.5% 39.4% 44.7%
1 Year Return vs Industry and Market
  • SYNH underperformed the Life Sciences industry which returned 14.1% over the past year.
  • SYNH underperformed the Market in United States of America which returned 12.5% over the past year.
Price Volatility
SYNH
Industry
5yr Volatility vs Market

Value

 Is Syneos Health undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Syneos Health to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Syneos Health.

NasdaqGS:SYNH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SYNH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.022 (1 + (1- 21%) (59.14%))
1.334
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.334 * 5.96%)
10.68%

Discounted Cash Flow Calculation for NasdaqGS:SYNH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Syneos Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:SYNH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.68%)
2020 356.70 Analyst x3 322.27
2021 506.44 Analyst x3 413.40
2022 623.82 Est @ 23.18% 460.07
2023 730.14 Est @ 17.04% 486.51
2024 823.22 Est @ 12.75% 495.60
2025 903.43 Est @ 9.74% 491.39
2026 972.45 Est @ 7.64% 477.88
2027 1,032.41 Est @ 6.17% 458.39
2028 1,085.43 Est @ 5.14% 435.42
2029 1,133.34 Est @ 4.41% 410.76
Present value of next 10 years cash flows $4,451.00
NasdaqGS:SYNH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,133.34 × (1 + 2.73%) ÷ (10.68% – 2.73%)
$14,641.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,641.13 ÷ (1 + 10.68%)10
$5,306.38
NasdaqGS:SYNH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,451.00 + $5,306.38
$9,757.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,757.38 / 103.80
$94
NasdaqGS:SYNH Discount to Share Price
Calculation Result
Value per share (USD) From above. $94.00
Current discount Discount to share price of $49.48
= -1 x ($49.48 - $94.00) / $94.00
47.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Syneos Health is available for.
Intrinsic value
47%
Share price is $49.48 vs Future cash flow value of $94
Current Discount Checks
For Syneos Health to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Syneos Health's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Syneos Health's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Syneos Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Syneos Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SYNH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.83
NasdaqGS:SYNH Share Price ** NasdaqGS (2019-11-12) in USD $49.48
United States of America Life Sciences Industry PE Ratio Median Figure of 18 Publicly-Listed Life Sciences Companies 32.14x
United States of America Market PE Ratio Median Figure of 2,922 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Syneos Health.

NasdaqGS:SYNH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SYNH Share Price ÷ EPS (both in USD)

= 49.48 ÷ 0.83

59.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Syneos Health is overvalued based on earnings compared to the US Life Sciences industry average.
  • Syneos Health is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Syneos Health's expected growth come at a high price?
Raw Data
NasdaqGS:SYNH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 59.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
35%per year
United States of America Life Sciences Industry PEG Ratio Median Figure of 15 Publicly-Listed Life Sciences Companies 2.53x
United States of America Market PEG Ratio Median Figure of 2,023 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqGS:SYNH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 59.63x ÷ 35%

1.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Syneos Health is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Syneos Health's assets?
Raw Data
NasdaqGS:SYNH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $27.63
NasdaqGS:SYNH Share Price * NasdaqGS (2019-11-12) in USD $49.48
United States of America Life Sciences Industry PB Ratio Median Figure of 36 Publicly-Listed Life Sciences Companies 4.52x
United States of America Market PB Ratio Median Figure of 5,066 Publicly-Listed Companies 1.74x
NasdaqGS:SYNH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SYNH Share Price ÷ Book Value per Share (both in USD)

= 49.48 ÷ 27.63

1.79x

* Primary Listing of Syneos Health.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Syneos Health is good value based on assets compared to the US Life Sciences industry average.
X
Value checks
We assess Syneos Health's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. Syneos Health has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Syneos Health expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
35%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Syneos Health expected to grow at an attractive rate?
  • Syneos Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Syneos Health's earnings growth is expected to exceed the United States of America market average.
  • Syneos Health's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SYNH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SYNH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 35%
NasdaqGS:SYNH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 5.7%
United States of America Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
United States of America Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SYNH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SYNH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,872 472 1
2022-12-31 5,552 412 1
2021-12-31 5,227 579 262 8
2020-12-31 4,942 505 195 12
2019-12-31 4,657 331 108 11
2019-11-13
NasdaqGS:SYNH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 4,608 270 86
2019-06-30 4,546 322 17
2019-03-31 4,452 337 19
2018-12-31 4,390 303 24
2018-09-30 3,995 280 -36
2018-06-30 3,472 165 -174
2018-03-31 2,658 76 -184
2017-12-31 1,853 198 -138
2017-09-30 1,365 124 -86
2017-06-30 1,033 163 89
2017-03-31 1,033 186 116
2016-12-31 1,030 109 113

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Syneos Health's earnings are expected to grow significantly at over 20% yearly.
  • Syneos Health's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SYNH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Syneos Health Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SYNH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.51 4.51 4.51 1.00
2022-12-31 3.92 3.92 3.92 1.00
2021-12-31 2.60 3.30 2.07 4.00
2020-12-31 1.89 2.65 1.35 6.00
2019-12-31 0.95 1.10 0.78 5.00
2019-11-13
NasdaqGS:SYNH Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.83
2019-06-30 0.16
2019-03-31 0.18
2018-12-31 0.23
2018-09-30 -0.35
2018-06-30 -1.75
2018-03-31 -2.10
2017-12-31 -1.85
2017-09-30 -1.38
2017-06-30 1.66
2017-03-31 2.15
2016-12-31 2.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Syneos Health is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Syneos Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Syneos Health has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Syneos Health performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Syneos Health's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Syneos Health's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Syneos Health has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Syneos Health has become profitable in the last year making it difficult to compare the US Life Sciences industry average.
Earnings and Revenue History
Syneos Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Syneos Health Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SYNH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 4,608.33 85.88 443.75
2019-06-30 4,546.22 16.56 430.82
2019-03-31 4,451.93 18.83 420.16
2018-12-31 4,390.12 24.28 406.31
2018-09-30 3,995.12 -36.43 434.05
2018-06-30 3,472.40 -174.04 425.96
2018-03-31 2,657.96 -184.21 368.27
2017-12-31 1,852.84 -138.47 313.95
2017-09-30 1,365.35 -85.93 220.89
2017-06-30 1,032.70 89.40 173.78
2017-03-31 1,033.42 116.41 173.84
2016-12-31 1,030.34 112.63 172.39
2016-09-30 1,008.71 105.80 171.07
2016-06-30 983.65 116.28 169.76
2016-03-31 952.22 109.20 164.29
2015-12-31 914.74 117.05 156.61
2015-09-30 887.11 33.24 154.17
2015-06-30 860.38 7.85 151.92
2015-03-31 836.54 -0.29 148.76
2014-12-31 809.73 -27.22 145.14
2014-09-30 770.37 12.83 138.52
2014-06-30 731.71 -0.89 127.88
2014-03-31 687.38 -26.84 123.29
2013-12-31 652.42 -42.03 117.89
2012-12-31 579.15 -59.61 109.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Syneos Health has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Syneos Health used its assets less efficiently than the US Life Sciences industry average last year based on Return on Assets.
  • Syneos Health's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Syneos Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Syneos Health has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Syneos Health's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Syneos Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Syneos Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Syneos Health's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Syneos Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Syneos Health Company Filings, last reported 1 month ago.

NasdaqGS:SYNH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,867.52 2,730.19 127.67
2019-06-30 2,823.90 2,756.05 105.71
2019-03-31 2,838.37 2,798.82 106.99
2018-12-31 2,856.14 2,787.12 155.22
2018-09-30 2,833.03 2,838.71 134.04
2018-06-30 2,822.67 2,874.75 172.82
2018-03-31 2,907.26 2,939.62 186.72
2017-12-31 3,022.58 2,970.93 322.18
2017-09-30 3,026.31 3,015.54 305.06
2017-06-30 353.44 473.01 170.48
2017-03-31 335.45 487.87 165.21
2016-12-31 301.47 497.72 102.93
2016-09-30 261.86 497.88 102.95
2016-06-30 288.64 473.61 91.92
2016-03-31 252.06 472.23 53.18
2015-12-31 217.43 501.84 85.01
2015-09-30 317.85 475.00 136.09
2015-06-30 280.37 475.00 98.51
2015-03-31 408.95 418.70 156.35
2014-12-31 392.21 415.81 126.45
2014-09-30 293.49 587.73 185.80
2014-06-30 289.03 587.48 155.55
2014-03-31 273.46 587.27 114.16
2013-12-31 276.21 591.92 96.97
2012-12-31 316.83 588.79 81.36
  • Syneos Health's level of debt (95.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (198.9% vs 95.2% today).
  • Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Syneos Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Syneos Health has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Syneos Health's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Syneos Health dividends. Estimated to be 0% next year.
If you bought $2,000 of Syneos Health shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Syneos Health's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Syneos Health's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SYNH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1948 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SYNH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00
2019-11-13

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Syneos Health has not reported any payouts.
  • Unable to verify if Syneos Health's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Syneos Health's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Syneos Health has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Syneos Health's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Syneos Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Syneos Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Syneos Health has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Syneos Health's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alistair Macdonald
COMPENSATION $7,573,682
AGE 49
TENURE AS CEO 3.1 years
CEO Bio

Mr. Alistair Macdonald has been the Chief Executive Officer and Director of Syneos Health, Inc. (formerly, INC Research Holdings, Inc.) since October 1, 2016. Mr. Macdonald served as the Chief Operating Officer at INC Research, LLC since January 1, 2013 and served as its President. He served as the President of Syneos Health, Inc. from January 19, 2015 to October 6, 2016. He served as the Chief Operating Officer of INC Research Holdings, Inc. since January 2013 to October 2016. He served as President, Clinical Development Services from March 2012 to January 2013, Executive Vice President of Global Oncology Unit from February 2011 to March 2012, Executive Vice President, Strategic Development from October 2009 to February 2011, and Senior Vice President, Biometrics from May 2002 to September 2009 at Syneos Health, Inc. He joined INC in 2002. He leads global operations, driving overall project delivery, implementation of new technologies, processes and solutions and their expansion globally. Mr. Macdonald has 20 years of experience in the pharmaceutical industry and held senior management positions in Manufacturing, Consultancy, Clinical Operations and Data Management functions. He served as the President of Clinical Development Services at INC Research, LLC and served as Head of Global Business Development & Marketing, Head of Alliances Development and Delivery teams, Head of Global Oncology. He served as Executive Vice President of Oncology and General Manager of Oncology at INC Research, LLC. Mr. Macdonald served as Executive Vice President of Strategic Development, Senior Vice President of Global Services, Vice President for DataSpectrum Americas and General Manager for INC Research, Inc. He was responsible for running operations management, clinical operations and data management departments. Mr. Macdonald's responsibilities included managing daily operations of a solid dose manufacturing facility and the development and delivery of consulting projects across a broad spectrum of sectors in Europe, the US and Asia. He served as Operations Management Director, Senior Director Operations Management Oncology, Executive Director for Global Operations Management of INC and was responsible for all aspects of data services division for the Americas. He holds Diploma Qualification from UK Institute of Directors. Mr. Macdonald holds a Master of Science in Environmental Diagnostics from Cranfield University and Bachelor of Science (Honors) in Applied Geology from Plymouth Polytechnic.

CEO Compensation
  • Alistair's compensation has increased in line with Syneos Health recently becoming profitable.
  • Alistair's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Syneos Health management team in years:

1.8
Average Tenure
46
Average Age
  • The average tenure for the Syneos Health management team is less than 2 years, this suggests a new team.
Management Team

Alistair Macdonald

TITLE
CEO & Director
COMPENSATION
$8M
AGE
49
TENURE
3.1 yrs

Jason Meggs

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
43
TENURE
1.3 yrs

Jon Olefson

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$887K
AGE
43
TENURE
1 yrs

Mike Bell

TITLE
Consultant
COMPENSATION
$231K
AGE
63
TENURE
0.9 yrs

Bobby Parks

TITLE
Executive VP & Chief Accounting Officer
TENURE
1 yrs

Judith Ng-Cashin

TITLE
Chief Scientific Officer
TENURE
3.7 yrs

Ronnie Speight

TITLE
Senior Vice President of Investor Relations

Kristen Spensieri

TITLE
Global Head of Corporate Communications & Marketing
TENURE
2.3 yrs

Lisa Van Capelle

TITLE
Chief Human Resources Officer

Neil Ferguson

TITLE
Chief Business Officer
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Syneos Health board of directors in years:

2.5
Average Tenure
50.5
Average Age
  • The average tenure for the Syneos Health board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Dineen

TITLE
Independent Chairman
COMPENSATION
$140K
AGE
56
TENURE
0.9 yrs

Alistair Macdonald

TITLE
CEO & Director
COMPENSATION
$8M
AGE
49
TENURE
3.1 yrs

Ken Meyers

TITLE
Independent Director
COMPENSATION
$275K
AGE
57
TENURE
3.1 yrs

Bill Klitgaard

TITLE
Independent Director
COMPENSATION
$278K
AGE
66
TENURE
2.7 yrs

Thomas Allen

TITLE
Independent Director
COMPENSATION
$90K
AGE
42
TENURE
2.3 yrs

Matt Monaghan

TITLE
Independent Director
COMPENSATION
$267K
AGE
51
TENURE
3.1 yrs

Lindy Harty

TITLE
Independent Director
COMPENSATION
$292K
AGE
58
TENURE
2.7 yrs

Todd Abbrecht

TITLE
Independent Director
COMPENSATION
$255K
AGE
50
TENURE
2.3 yrs

John Maldonado

TITLE
Independent Director
COMPENSATION
$83K
AGE
43
TENURE
2.3 yrs

Joshua Nelson

TITLE
Independent Director
COMPENSATION
$258K
AGE
46
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Jun 19 Sell Thomas H. Lee Partners, L.P. Company 24. Jun 19 24. Jun 19 -766,061 $247.96 $-106,517,321
19. Dec 18 Buy Jason Meggs Individual 17. Dec 18 17. Dec 18 3,650 $41.25 $150,563
19. Dec 18 Buy Jonathan Olefson Individual 17. Dec 18 17. Dec 18 750 $41.27 $30,955
X
Management checks
We assess Syneos Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Syneos Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

An Intrinsic Calculation For Syneos Health, Inc. (NASDAQ:SYNH) Suggests It's 47% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $375.1m $518.5m $630.9m $731.9m $819.8m $895.5m $960.7m $1.0b $1.1b $1.1b Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ 21.68% Est @ 16% Est @ 12.02% Est @ 9.23% Est @ 7.28% Est @ 5.92% Est @ 4.96% Est @ 4.29% Present Value ($, Millions) Discounted @ 10.61% $339.1 $423.8 $466.3 $489.0 $495.3 $489.1 $474.4 $454.3 $431.1 $406.5 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $4.5b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.1b × (1 + 2.7%) ÷ (10.6% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 10.6%)10 = $5.30b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $9.77b.

Simply Wall St -

Syneos Health (NASDAQ:SYNH) Shareholders Have Enjoyed A 15% Share Price Gain

(NASDAQ:SYNH) share price return of 15% over three years lags the market return in the same period. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … A Different Perspective We're pleased to report that Syneos Health rewarded shareholders with a total shareholder return of 5.6% over the last year.

Simply Wall St -

Does Syneos Health (NASDAQ:SYNH) Have A Healthy Balance Sheet?

Since Syneos Health does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View Syneos Health's EBIT growth rate was a real positive on this analysis, as was its conversion of EBIT to free cash flow. … Considering this range of data points, we think Syneos Health is in a good position to manage its debt levels.

Simply Wall St -

Why Syneos Health, Inc.'s (NASDAQ:SYNH) CEO Pay Matters To You

Check out our latest analysis for Syneos Health How Does Alistair Macdonald's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Syneos Health has changed from year to year. … Boasting a total shareholder return of 35% over three years, Syneos Health, Inc.

Simply Wall St -

How Should Investors React To Syneos Health, Inc.'s (NASDAQ:SYNH) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … View our latest analysis for Syneos Health How Does Alistair Macdonald's Compensation Compare With Similar Sized Companies? … I think that the total shareholder return of 35%, over three years, would leave most Syneos Health, Inc.

Simply Wall St -

Does Syneos Health, Inc. (NASDAQ:SYNH) Have A High Beta?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … If this beta value holds true in the future, Syneos Health shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since Syneos Health tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Are Investors Undervaluing Syneos Health, Inc. (NASDAQ:SYNH) By 45%?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $302.42 $373.70 $519.57 $615.55 $700.18 $773.30 $836.16 $890.59 $938.46 $981.46 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Est @ 18.47% Est @ 13.75% Est @ 10.44% Est @ 8.13% Est @ 6.51% Est @ 5.38% Est @ 4.58% Present Value ($, Millions) Discounted @ 11.01% $272.42 $303.24 $379.79 $405.32 $415.31 $413.19 $402.46 $386.14 $366.54 $345.31 Present Value of 10-year Cash Flow (PVCF)= $3.69b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$981m × (1 + 2.7%) ÷ (11% – 2.7%) = US$12b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$12b ÷ ( 1 + 11%)10 = $4.28b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $7.97b. … NasdaqGS:SYNH Intrinsic value, May 28th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Syneos Health, Inc. (NASDAQ:SYNH) A Financially Sound Company?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Syneos Health, Inc. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … View our latest analysis for Syneos Health

Simply Wall St -

Is Syneos Health, Inc. (NASDAQ:SYNH) Potentially Undervalued?

(NASDAQ:SYNH), which is in the life sciences business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Syneos Health’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Calculating The Intrinsic Value Of Syneos Health, Inc. (NASDAQ:SYNH)

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

Syneos Health, Inc. operates as an integrated biopharmaceutical solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. It operates through two segments, Clinical Solutions and Commercial Solutions. The Clinical Solutions segment offers various clinical development services spanning Phase I to Phase IV, including full-service global studies, as well as clinical monitoring, investigator recruitment, patient recruitment, data management, and study startup to assist customers with drug development process. The Commercial Solutions segment provides commercialization services, including medication adherence, communications, and consulting services. Its customers include small, mid-sized, and large companies in the pharmaceutical, biotechnology, and medical device industries. The company was formerly known as INC Research Holdings, Inc. and changed its name to Syneos Health, Inc. in January 2018. Syneos Health, Inc. was incorporated in 2010 and is headquartered in Morrisville, North Carolina.

Details
Name: Syneos Health, Inc.
SYNH
Exchange: NasdaqGS
Founded: 2010
$5,135,850,275
103,796,489
Website: http://www.syneoshealth.com
Address: Syneos Health, Inc.
1030 Sync Street,
Morrisville,
North Carolina, 27560,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SYNH New Class A Common Stock Nasdaq Global Select US USD 07. Nov 2014
DB 8IN New Class A Common Stock Deutsche Boerse AG DE EUR 07. Nov 2014
Number of employees
Current staff
Staff numbers
24,000
Syneos Health employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 00:35
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/08
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.