tiprankstipranks
Trending News
More News >
Synaptics Inc (SYNA)
NASDAQ:SYNA
Advertisement

Synaptics (SYNA) AI Stock Analysis

Compare
973 Followers

Top Page

SY

Synaptics

(NASDAQ:SYNA)

Rating:76Outperform
Price Target:
$79.00
▲(19.70%Upside)
Synaptics receives a robust score driven by strong technical indicators and a positive earnings call outlook. The effective cash flow management and solid balance sheet further support the score. However, the negative EBIT margins and valuation concerns slightly temper the overall assessment. The recent CEO appointment is expected to positively impact strategic growth.
Positive Factors
Core IoT Growth
Recent moves in Core IoT, such as partnerships with Google and Broadcom, position the company for stronger growth.
Financial Performance
Synaptics posted a slight beat and raise, the 5th straight quarter of year-over-year revenue growth.
Product Expansion
Management highlighted the expansion of their portfolio to include Wi-Fi 8 combo devices, additional Wi-Fi 7 combo devices, UWB IP, and next-generation GPS/GNSS devices.
Negative Factors
Automotive Market Conditions
Automotive continues to be impacted by weaker end-market conditions as Synaptics remains more exposed to NA/EU customers.
Automotive Sector
Automotive continues to face 'sluggish' demand, which is expected to continue into the June quarter.
Demand Risk
The risk remains regarding potential demand softness in the future.

Synaptics (SYNA) vs. SPDR S&P 500 ETF (SPY)

Synaptics Business Overview & Revenue Model

Company DescriptionSynaptics 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 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: 10.39%|
Next Earnings Date:Aug 07, 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 Financial Statement Overview

Summary
Synaptics exhibits a balanced financial profile with strengths in cash flow and a solid balance sheet. While revenue and net income show healthy growth, operational profitability remains a concern due to negative EBIT margins. The company maintains a strong equity position and effective cash flow management, which can support future growth initiatives.
Income Statement
65
Positive
The company shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is at 45.08%, indicating solid profitability in core operations. However, the EBIT margin for the TTM is negative, reflecting operational challenges. The net profit margin improved to 15.90% in the TTM from 13.09% in the previous annual period. The revenue growth rate in the TTM is 8.32%, signaling moderate growth, though it remains below earlier periods.
Balance Sheet
72
Positive
The balance sheet demonstrates a stable financial position. The debt-to-equity ratio is approximately 0.64 in the TTM, indicating a reasonable level of leverage. The equity ratio stands at 54.30%, suggesting a strong equity base relative to assets. Return on Equity (ROE) improved to 11.91% in the TTM from 8.56% in the previous period, reflecting enhanced profitability for shareholders.
Cash Flow
78
Positive
Cash flow metrics are robust with the TTM free cash flow showing a significant recovery to $109.1 million. The operating cash flow to net income ratio is 0.91, indicating good cash conversion. The free cash flow to net income ratio is 0.66, which is healthy, demonstrating effective cash generation relative to earnings.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue959.40M1.36B1.74B1.34B1.33B
Gross Profit439.80M715.90M943.10M611.20M543.10M
EBITDA49.90M339.30M498.20M281.30M260.00M
Net Income125.60M73.60M257.50M79.60M118.80M
Balance Sheet
Total Assets2.83B2.61B2.86B2.23B1.69B
Cash, Cash Equivalents and Short-Term Investments876.90M934.30M876.00M836.30M763.40M
Total Debt1.02B1.03B1.04B914.80M601.20M
Total Liabilities1.36B1.37B1.59B1.26B874.70M
Stockholders Equity1.47B1.24B1.27B967.20M819.10M
Cash Flow
Free Cash Flow-31.70M297.30M405.30M298.10M205.50M
Operating Cash Flow135.90M331.50M462.70M319.20M221.80M
Investing Cash Flow-157.70M-6.00M-482.70M-522.60M119.90M
Financing Cash Flow-25.10M-221.30M14.30M274.10M93.90M

Synaptics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price66.00
Price Trends
50DMA
63.58
Positive
100DMA
61.57
Positive
200DMA
69.15
Negative
Market Momentum
MACD
1.44
Positive
RSI
51.33
Neutral
STOCH
38.44
Neutral
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 66 is below the 20-day moving average (MA) of 66.13, above the 50-day MA of 63.58, and below the 200-day MA of 69.15, indicating a neutral trend. The MACD of 1.44 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 38.44 is Neutral, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.60B15.9912.60%10.60%
74
Outperform
$2.68B50.515.74%15.33%-47.04%
70
Outperform
$2.44B25.9212.33%2.75%10.78%58.82%
65
Neutral
$1.89B98.952.29%2.29%-6.17%
63
Neutral
$33.80B5.84-11.67%1.84%5.28%-18.34%
59
Neutral
$2.81B-18.35%44.54%41.55%
VSVSH
55
Neutral
$2.37B26.74-3.14%2.29%-11.31%-127.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SYNA
Synaptics
66.00
-25.19
-27.62%
FORM
Formfactor
34.95
-21.55
-38.14%
KLIC
Kulicke & Soffa
35.16
-12.69
-26.52%
SIMO
Silicon Motion
71.17
-2.77
-3.75%
VSH
Vishay Intertechnology
16.99
-6.41
-27.39%
AMBA
Ambarella
66.58
9.07
15.77%

Synaptics Corporate Events

Executive/Board Changes
Synaptics Appoints Rahul Patel as New CEO
Neutral
May 23, 2025

On May 21, 2025, Synaptics announced the appointment of Rahul Patel as the new CEO, effective by June 2, 2025, following the resignation of the previous CEO. To ensure leadership stability, the Compensation Committee awarded Ken Rizvi, the interim CEO, a retention equity award of 21,157 restricted stock units, which will vest quarterly, provided he remains employed. The award terms include provisions for immediate vesting under certain termination conditions.

The most recent analyst rating on (SYNA) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Synaptics stock, see the SYNA Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Synaptics Appoints Rahul Patel as New CEO
Positive
May 21, 2025

On May 19, 2025, Synaptics Incorporated announced the appointment of Rahul Patel as President and CEO, effective by June 2, 2025. Patel, with extensive experience from Qualcomm and Broadcom, is expected to drive the company’s growth and innovation in processing, connectivity, and sensing solutions. This leadership change aims to strengthen Synaptics’ market position and enhance its technology roadmap, benefiting stakeholders by advancing the company’s strategic initiatives.

The most recent analyst rating on (SYNA) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Synaptics stock, see the SYNA Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 11, 2025