Synaptics (SYNA) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: N/A
• Average Volume (3M): 457.98K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 2.06
• Revenue Growth: 11.98%
• EPS Growth: -138.59%
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 1.01
• Shares Outstanding: 38,656,440
• 10 Day Avg. Volume: 305,581
• 30 Day Avg. Volume: 457,979
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 2.09K
• 1Y Price Target: $82.25
• Price Target Upside: 19.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $75.00 ▲(8.54% Upside)

Synaptics' overall stock score is driven by strong earnings call results and positive technical indicators, despite financial performance challenges and valuation concerns. The company's strategic focus on Core IoT and Edge AI, along with a share repurchase program, supports future growth potential.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.07B	1.07B	959.40M	1.36B	1.74B	1.34B
Gross Profit	480.40M	480.40M	439.80M	715.90M	943.10M	611.20M
EBITDA	1.40M	-100.60M	49.90M	339.30M	498.20M	281.30M
Net Income	-47.80M	-47.80M	125.60M	73.60M	257.50M	79.60M
Balance Sheet
Total Assets	2.58B	2.58B	2.83B	2.61B	2.86B	2.23B
Cash, Cash Equivalents and Short-Term Investments	452.50M	452.50M	876.90M	934.30M	876.00M	836.30M
Total Debt	834.80M	834.80M	1.02B	1.03B	1.04B	914.80M
Total Liabilities	1.19B	1.19B	1.36B	1.37B	1.59B	1.26B
Stockholders Equity	1.39B	1.39B	1.47B	1.24B	1.27B	967.20M
Cash Flow
Free Cash Flow	106.20M	116.20M	-31.70M	297.30M	431.60M	298.10M
Operating Cash Flow	142.00M	142.00M	135.90M	331.50M	462.70M	319.20M
Investing Cash Flow	-297.90M	-297.90M	-157.70M	-6.00M	-482.70M	-522.60M
Financing Cash Flow	-331.40M	-331.40M	-25.10M	-221.30M	14.30M	274.10M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 69.1 is below the 20-day moving average (MA) of 69.22, above the 50-day MA of 67.18, and above the 200-day MA of 67.77, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 65.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYNA.

Synaptics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIOD	76 Outperform	$2.47B	38.72	3.49%	―	2.86%	-34.32%
SIMO	70 Outperform	$2.84B	35.23	10.16%	2.37%	-0.29%	1.47%
SYNA	64 Neutral	$2.73B	14.47	-3.34%	―	11.98%	-138.59%
FORM	62 Neutral	$2.27B	52.32	4.53%	―	8.30%	-63.69%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
POWI	55 Neutral	$2.50B	75.53	4.68%	1.89%	7.16%	-21.24%
VSH	53 Neutral	$2.09B	26.74	-4.11%	2.62%	-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.