In this article, I’ve summarized the key takeaways on how I see SYNT has performed. SYNT’s trailing twelve-month earnings of UK£100m has jumped 35% compared to the previous year. Let’s take a look at whether it is merely a result of an industry uplift, or if Synthomer has experienced some company-specific growth. More In terms of returns from investment, Synthomer has invested its equity funds well leading to a 21% return on equity , above the sensible minimum of 20%.
Furthermore, its return on assets of 8.1% exceeds the GB Chemicals industry of 6.0%, indicating Synthomer has used its assets more efficiently. However, its return on capital , which also accounts for Synthomer’s debt level, has declined over the past 3 years from 19% to 15%. Synthomer’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Synthomer gives investors conviction.
However, the next step would be to assess whether the future looks as optimistic. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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