Synaptics (SYNA) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: N/A
• Average Volume (3M): 358.63K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.96
• Revenue Growth: 10.60%
• EPS Growth: N/A
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 0.90
• Shares Outstanding: 38,545,460
• 10 Day Avg. Volume: 263,022
• 30 Day Avg. Volume: 358,631
• PEG Ratio: -6.75
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.60
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 6.54
• Enterprise Value/Ebitda: 15.94
• 1Y Price Target: $84.83
• Price Target Upside: 28.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• 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 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 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 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	959.40M	1.36B	1.74B	1.34B	1.33B
Gross Profit	439.80M	715.90M	943.10M	611.20M	543.10M
EBITDA	49.90M	339.30M	498.20M	281.30M	260.00M
Net Income	125.60M	73.60M	257.50M	79.60M	118.80M
Balance Sheet
Total Assets	2.83B	2.61B	2.86B	2.23B	1.69B
Cash, Cash Equivalents and Short-Term Investments	876.90M	934.30M	876.00M	836.30M	763.40M
Total Debt	1.02B	1.03B	1.04B	914.80M	601.20M
Total Liabilities	1.36B	1.37B	1.59B	1.26B	874.70M
Stockholders Equity	1.47B	1.24B	1.27B	967.20M	819.10M
Cash Flow
Free Cash Flow	-31.70M	297.30M	405.30M	298.10M	205.50M
Operating Cash Flow	135.90M	331.50M	462.70M	319.20M	221.80M
Investing Cash Flow	-157.70M	-6.00M	-482.70M	-522.60M	119.90M
Financing Cash Flow	-25.10M	-221.30M	14.30M	274.10M	93.90M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 66.00
• 50DMA: Positive
• 100DMA: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYNA	76 Outperform	$2.60B	15.99	12.60%	―	10.60%	―
FORM	74 Outperform	$2.68B	50.51	5.74%	―	15.33%	-47.04%
SIMO	70 Outperform	$2.44B	25.92	12.33%	2.75%	10.78%	58.82%
KLIC	65 Neutral	$1.89B	98.95	2.29%	2.29%	-6.17%	―
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
AMBA	59 Neutral	$2.81B	―	-18.35%	―	44.54%	41.55%
VSH	55 Neutral	$2.37B	26.74	-3.14%	2.29%	-11.31%	-127.88%

Synaptics Corporate Events

Synaptics Appoints Rahul Patel as New CEO

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.

Synaptics Appoints Rahul Patel as New CEO

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.

Synaptics Updates Indemnification and Severance Agreements

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.