Synaptics (SYNA) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: N/A
• Average Volume (3M): 371.29K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 2.13
• Revenue Growth: 11.98%
• EPS Growth: -138.59%
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.01
• Shares Outstanding: 38,656,440
• 10 Day Avg. Volume: 356,630
• 30 Day Avg. Volume: 371,291
• PEG Ratio: 0.39
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 21.91
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 2.09K
• 1Y Price Target: $82.25
• Price Target Upside: 24.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: $67.00 ▲(1.62% Upside)

Synaptics' overall stock score reflects a challenging financial performance with declining revenues and profitability issues, which are the most significant factors. The technical analysis indicates bearish trends, and the valuation suggests potential overvaluation. However, the positive outlook from the earnings call, driven by growth in Core IoT products and strategic innovations, provides some optimism for future performance.

Positive Factors

Core IoT Product Expansion

The significant growth in Core IoT products indicates a strong market position and potential for sustained revenue expansion, driven by increasing demand for IoT solutions.

New Product Development

The development of new products like Wi-Fi 7 solutions and Astra processors positions Synaptics to capture emerging market opportunities and drive future revenue growth.

Revenue Growth

The 12% revenue growth reflects strong demand across Synaptics' product lines, supporting its strategic focus on expanding market presence and enhancing shareholder value.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by negative margins, suggest difficulties in cost management and could impact long-term financial health if not addressed.

Automotive Demand Softness

Weak demand in the automotive segment may hinder revenue growth and diversification efforts, as this market remains a key area for Synaptics' expansion.

Decreased Free Cash Flow

A significant drop in free cash flow could limit Synaptics' ability to invest in growth initiatives and manage financial obligations, affecting long-term operational flexibility.

Synaptics Business Overview & Revenue Model

Company Description

Synaptics Incorporated develops, markets, and sells semiconductor product solutions worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes or over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in automobiles, notebook personal computers (PCs), PC peripherals, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.

How the Company Makes Money

Synaptics generates revenue primarily through the sale of its semiconductor products, which include touchscreens, display drivers, and biometric sensors. The company's revenue model is based on both direct sales to original equipment manufacturers (OEMs) and partnerships with technology companies. Key revenue streams include royalties from licensing its technology, sales of integrated circuits, and ongoing support and development services. Significant partnerships with major tech firms and automakers enhance its market presence and contribute to its earnings, while the demand for advanced user interfaces across devices drives growth in its core offerings.

Synaptics Financial Statement Overview

Summary

Synaptics is facing financial challenges with declining revenues and profitability issues. The balance sheet shows moderate leverage and a solid equity base, but the negative return on equity highlights the need for improved profitability. Cash flow management remains a relative strength, although free cash flow has decreased.

Income Statement

Synaptics has experienced a significant decline in revenue over the past year, with a revenue growth rate of -18.72%. The company is currently facing profitability challenges, as indicated by a negative net profit margin of -4.45% and negative EBIT and EBITDA margins. This suggests that the company is struggling to manage its costs effectively in relation to its revenue.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 0.60, indicating a moderate level of leverage. However, the return on equity is negative at -3.43%, reflecting the company's current unprofitability. The equity ratio stands at a healthy 53.96%, suggesting a solid capital structure despite recent losses.

Cash Flow

Operating cash flow remains positive, but the free cash flow has decreased by 27.24% year-over-year. The operating cash flow to net income ratio is 0.52, indicating that cash generation is not keeping pace with reported losses. The free cash flow to net income ratio is relatively strong at 0.82, showing some resilience in cash flow management despite net losses.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2024	Dec 2023
Income Statement
Total Revenue	1.07B	1.07B	1.07B	959.40M	959.40M	1.36B
Gross Profit	480.40M	480.40M	480.40M	439.80M	439.80M	715.90M
EBITDA	1.40M	-100.60M	-100.60M	49.90M	49.90M	339.30M
Net Income	-47.80M	-47.80M	-47.80M	125.60M	125.60M	73.60M
Balance Sheet
Total Assets	2.58B	2.58B	2.58B	2.83B	2.83B	2.61B
Cash, Cash Equivalents and Short-Term Investments	452.50M	452.50M	452.50M	876.90M	876.90M	934.30M
Total Debt	834.80M	834.80M	834.80M	1.02B	1.02B	1.03B
Total Liabilities	1.19B	1.19B	1.19B	1.36B	1.36B	1.37B
Stockholders Equity	1.39B	1.39B	1.39B	1.47B	1.47B	1.24B
Cash Flow
Free Cash Flow	106.20M	116.20M	116.20M	-31.70M	-31.70M	297.30M
Operating Cash Flow	142.00M	142.00M	142.00M	135.90M	135.90M	331.50M
Investing Cash Flow	-297.90M	-297.90M	-297.90M	-157.70M	-157.70M	-6.00M
Financing Cash Flow	-331.40M	-331.40M	-331.40M	-25.10M	-25.10M	-221.30M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYNA, the sentiment is Negative. The current price of 65.93 is below the 20-day moving average (MA) of 69.47, below the 50-day MA of 68.29, and below the 200-day MA of 66.75, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 32.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYNA.

Synaptics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIOD	71 Outperform	$2.25B	35.30	3.49%	―	2.86%	-34.32%
SIMO	70 Outperform	$2.92B	36.11	10.16%	2.22%	-0.29%	1.47%
FORM	67 Neutral	$2.94B	67.78	4.53%	―	8.30%	-63.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	55 Neutral	$1.94B	58.82	4.68%	1.95%	7.16%	-21.24%
SYNA	53 Neutral	$2.40B	14.47	-3.34%	―	11.98%	-138.59%
VSH	53 Neutral	$1.99B	26.74	-4.11%	2.73%	-6.36%	-151.95%

Synaptics Corporate Events

Synaptics Announces $150 Million Share Repurchase Program

On August 5, 2025, Synaptics‘ Board of Directors authorized a new share repurchase program of up to $150 million, reflecting the company’s strategic focus on capital allocation and market conditions. In fiscal 2025, Synaptics reported a 12% revenue growth to $1.074 billion, driven by a 53% increase in Core IoT product sales, despite a GAAP loss per share. The company aims to sustain growth with a focus on Core IoT and Edge AI, positioning itself for long-term success.