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Synaptics Inc (SYNA)
NASDAQ:SYNA
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Synaptics
(NASDAQ:SYNA)
73Outperform
Positive Factors
Partnerships and Collaborations
Recent moves in Core IoT, such as partnerships with Google and Broadcom, position the company for stronger growth.
Product Launch and Market Expansion
Synaptics launched its first broad market device, driving an incremental SAM opportunity of $3 billion.
Negative Factors
Automotive Sector Challenges
Automotive continues to face 'sluggish' demand, which is expected to continue into the June quarter.
Exposure to Weaker Markets
Automotive continues to be impacted by weaker end-market conditions as Synaptics remains more exposed to NA/EU customers.
Synaptics (SYNA) vs. S&P 500 (SPY)
Market Cap
$2.52B
Dividend YieldN/A
Average Volume (3M)571.69K
Price to Earnings (P/E)15.8
Beta (1Y)1.95
Revenue Growth10.60%
EPS GrowthN/A
CountryUS
Employees1,716
SectorTechnology
Sector Strength76
IndustrySemiconductors
Share Statistics
EPS (TTM)0.90
Shares Outstanding38,545,460
10 Day Avg. Volume493,957
30 Day Avg. Volume571,692
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)1.68
Price to Sales (P/S)0.00
P/FCF Ratio80.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$82.00Price Target Upside25.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Synaptics Business Overview & Revenue Model
Company DescriptionSynaptics Incorporated is a leading developer of human interface solutions, primarily focused on the consumer electronics market. The company designs and supplies semiconductor solutions that enable intuitive human interaction with a wide variety of devices in sectors such as mobile, automotive, and smart home applications. Synaptics' core products include touch controllers, display drivers, and biometrics solutions, which are integrated into smartphones, laptops, wearables, and other electronic devices, enhancing user experience and functionality.
How the Company Makes MoneySynaptics generates revenue primarily through the sale of its semiconductor solutions to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) across various industries. The company’s key revenue streams include touch and display driver integration (TDDI) solutions, fingerprint sensors, and touchpad technologies. Synaptics also earns from its IoT products, which cater to the growing smart home and automotive markets. Strategic partnerships with major technology firms and device manufacturers further bolster its revenue, enabling the integration of Synaptics’ technologies into a broad range of consumer electronics. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps maintain competitive advantage and drive sales.
Synaptics Financial Statement Overview
Summary
Synaptics exhibits a mixed financial performance with strong equity standings and profitability metrics, but faces challenges in revenue growth and operational efficiency. The company's ability to generate cash flow is currently under pressure, highlighting the need for strategic adjustments to enhance financial resilience.Income Statement
Over the TTM period, Synaptics experienced a decrease in revenue growth, with a decline from the previous year, indicating challenges in maintaining sales momentum. The gross profit margin is strong at 45.46%, but the company faces negative EBIT margin due to high operational costs, impacting overall profitability. However, net profit margin remains positive at 16.73%, reflecting some efficiency in managing non-operational expenses.53
Neutral
Balance Sheet
Synaptics maintains a healthy equity ratio of 54.46%, demonstrating strong financial stability and low leverage. The debt-to-equity ratio is manageable at 0.61, indicating moderate reliance on debt financing. Return on equity is robust at 12.28%, reflecting effective utilization of equity to generate profits.65
Positive
Cash Flow
The cash flow analysis highlights a concerning free cash flow growth rate, which turned negative in the TTM period. Operating cash flow to net income ratio is low at 0.07, suggesting potential liquidity issues. Despite these challenges, the company has a significant cash reserve to sustain short-term operations.42
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.01B | 959.40M | 1.36B | 1.74B | 1.34B | 1.33B | Gross Profit |
| 462.90M | 422.50M | 715.90M | 943.10M | 611.20M | 543.10M | EBIT |
| -56.90M | -75.80M | 154.30M | 350.40M | 27.10M | -20.10M | EBITDA |
| 50.60M | 49.90M | 349.00M | 498.20M | 281.30M | 260.00M | Net Income Common Stockholders |
| 168.90M | 125.60M | 73.60M | 257.50M | 79.60M | 118.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 596.10M | 876.90M | 934.30M | 876.00M | 836.30M | 763.40M | Total Assets |
| 2.53B | 2.83B | 2.61B | 2.86B | 2.23B | 1.69B | Total Debt |
| 880.90M | 1.02B | 978.00M | 981.70M | 881.50M | 586.60M | Net Debt |
| 284.80M | 145.40M | 53.30M | 157.70M | 45.20M | -176.80M | Total Liabilities |
| 1.15B | 1.36B | 1.37B | 1.59B | 1.26B | 874.70M | Stockholders Equity |
| 1.38B | 1.47B | 1.24B | 1.27B | 967.20M | 819.10M |
| Cash Flow | Free Cash Flow | ||||
| 28.40M | -31.70M | 296.40M | 405.30M | 293.10M | 205.50M | Operating Cash Flow |
| 62.70M | 135.90M | 331.50M | 436.40M | 319.20M | 221.80M | Investing Cash Flow |
| -32.50M | -157.70M | -6.00M | -456.40M | -522.60M | 119.90M | Financing Cash Flow |
| -279.40M | -25.10M | -221.30M | 14.30M | 274.10M | 93.90M |
Synaptics Technical Analysis
Neutral
65.25
Price Trends
58.41
Positive
67.14
Negative
71.37
Negative
Market Momentum
2.47
Negative
66.52
Neutral
91.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYNA, the sentiment is Neutral. The current price of 65.25 is above the 20-day moving average (MA) of 58.41, above the 50-day MA of 58.41, and below the 200-day MA of 71.37, indicating a neutral trend. The MACD of 2.47 indicates Negative momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 91.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYNA.
Synaptics Risk Analysis
Synaptics disclosed 45 risk factors in its most recent earnings report. Synaptics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Synaptics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.52B | 15.81 | 12.60% | ― | 10.60% | ― | |
70 Outperform | $2.13B | 22.63 | 12.33% | 3.15% | 10.78% | 58.82% | |
66 Neutral | $2.47B | 46.34 | 5.74% | ― | 15.33% | -47.04% | |
64 Neutral | $1.78B | 93.55 | 2.29% | 2.40% | -6.17% | ― | |
60 Neutral | $11.59B | 10.39 | -7.23% | 2.94% | 7.46% | -10.76% | |
58 Neutral | $2.07B | 26.74 | -3.14% | 2.62% | -11.31% | -127.88% | |
55 Neutral | $2.69B | ― | -20.89% | ― | 25.78% | 32.95% |
* Technology Sector Average
Performance Comparison
SYNA
Synaptics
65.25
-28.89
-30.69%
FORM
Formfactor
32.06
-25.49
-44.29%
KLIC
Kulicke & Soffa
33.82
-12.92
-27.64%
SIMO
Silicon Motion
63.21
-12.11
-16.08%
VSH
Vishay Intertechnology
15.27
-8.24
-35.05%
AMBA
Ambarella
63.51
13.74
27.61%
Synaptics Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2025)
| % Change Since: 9.13%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong growth in revenue, EPS, and IoT products, supported by significant product innovations and market share gains in the PC sector. However, challenges persist in the automotive market and mobile revenue decline, which are balanced by the positive developments in IoT and PC markets.Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue increased 12% year-over-year to $267 million, slightly above the midpoint of the guidance range.
Non-GAAP EPS Growth
Non-GAAP EPS grew 70% year-over-year to $0.90, exceeding the midpoint of guidance.
Core IoT Product Sales Surge
Core IoT product sales increased 43% year-over-year to $68 million, driven by strong momentum in wireless and processor products.
Expansion of Wireless Portfolio
Launched the first WiFi 7 device for IoT applications, designed for higher throughput and improved reliability, targeting high-bandwidth applications.
AI-Native Astra Platform Advancements
Extended Astra platform with SR-Series high-performance adaptive MCUs, gaining traction across consumer, automotive, and industrial markets.
PC Products Performance
PC products performed slightly better than typical seasonality, with continued market share gains and innovations in AI integration.
Negative Updates
Automotive Market Challenges
Facing sluggish demand in the automotive sector, impacting sequential revenue.
Mobile Product Revenue Decline
Mobile product revenues were down 4% sequentially and 18% year-over-year as product shipments reached end of life.
Cash and Investments Decrease
Cash, cash equivalents, and short-term investments decreased by approximately $174.7 million from the prior quarter.
Company Guidance
During Synaptics' third fiscal quarter of 2025, the company reported strong financial performance with revenues reaching $267 million, a 12% year-over-year increase, slightly surpassing the midpoint of their guidance range. The non-GAAP gross margin stood at 53.5%, aligning with guidance expectations, while the non-GAAP EPS rose to $0.90, marking a substantial 70% year-over-year growth, exceeding the guidance midpoint. Core IoT product sales surged by 43% year-over-year, amounting to $68 million, driven by robust demand and the launch of new products, including the WiFi 7 device for IoT applications. Looking ahead, Synaptics anticipates fourth quarter revenues around $280 million, with non-GAAP gross margin and operating expenses expected to maintain at 53.5% and $103 million, respectively, reflecting a continued focus on market expansion and technological innovation.Synaptics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Synaptics Updates Indemnification and Severance Agreements
Neutral
Apr 18, 2025
On April 17, 2025, Synaptics Incorporated updated its indemnification agreements for directors and officers to align with current market practices and legal requirements, providing tailored protections for each role. Additionally, the company introduced new Change in Control and Severance Agreements to retain executives during a CEO transition, offering severance benefits under specific termination conditions and granting retention equity awards to key executives to ensure leadership stability.
Spark’s Take on SYNA Stock
According to Spark, TipRanks’ AI Analyst, SYNA is a Neutral.
Synaptics shows resilience with strategic partnerships and growth in IoT, but faces challenges with declining revenue growth, operational inefficiencies, and bearish technical signals. Despite a solid balance sheet and strategic initiatives, uncertainties in leadership and sluggish market segments weigh on the overall score.
To see Spark’s full report on SYNA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.