SNCR at 0.55X P/S is Trading Dirt Cheap: Buy, Sell or Hold the Stock?

Core Insights - Synchronoss Technologies (SNCR) stock is trading at a significant discount with a Value Score of A, reflecting a forward 12-month Price/Sales ratio of 0.55X, lower than its median of 0.59X and the sector's average of 6.32X [1][2] Financial Performance - SNCR's shares have dropped 4.7% year to date, underperforming the broader sector's decline of 0.9% and the Internet Software industry's appreciation of 8.2% [5] - The company reported an 8% year-over-year growth in total revenues, driven by a 5.1% increase in cloud subscribers [12] - The Zacks Consensus Estimate for 2024 revenues is pegged at $173.03 million, suggesting a 19.32% decline over 2023 [17] Strategic Developments - In January 2025, SNCR launched a next-generation Personal Cloud platform with enhanced features, supporting over 11 million subscribers [13][14] - The company secured a three-year contract extension with AT&T for its Personal Cloud solution and with SFR, part of Altice France, enhancing its partner base [15] Guidance and Estimates - SNCR raised its 2024 revenue guidance to between $172 million and $175 million, with recurring revenues expected to be between 90% and 92% of total revenues [16] - The consensus estimate for 2025 revenues is pegged at $180.87 million, suggesting a 4.53% growth over 2024 [18] Market Position - SNCR is trading below the 50-day and 200-day moving averages, indicating a bearish trend [8] - The company is cheaper than peers like Microsoft and Dropbox, which are trading at P/S ratios of 9.73X and 3.15X, respectively [2]