Synaptics (SYNA) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: N/A
• Average Volume (3M): 499.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 13.24%
• EPS Growth: -129.14%
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.09
• Shares Outstanding: 38,990,074
• 10 Day Avg. Volume: 576,983
• 30 Day Avg. Volume: 499,424
• 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: 0.13
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.78
• Enterprise Value/Ebitda: 4.55
• 1Y Price Target: $85.33
• Price Target Upside: 16.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.34
• Revenue Forecast (FY): $1.18B

• Rating: 52 Neutral
• Price Target: $59.00 ▼(-19.63% Downside)

Synaptics' overall stock score is driven by mixed financial performance and bearish technical indicators. The earnings call provided positive guidance and strategic developments, but challenges in profitability and valuation weigh on the score. The company's future growth potential in IoT and Edge AI markets is a positive aspect, but current financial and technical conditions present risks.

Positive Factors

Core IoT Portfolio Growth

The significant growth in the Core IoT portfolio indicates strong demand and market positioning, supporting long-term revenue expansion and enhancing competitive advantage in the IoT sector.

Launch of Astra Edge AI Processors

The launch of Astra Edge AI processors represents a strategic advancement in AI technology, likely to drive future growth and strengthen Synaptics' position in the AI and edge computing markets.

Strong Cash Flow Growth

Robust cash flow growth enhances financial flexibility, allowing for reinvestment in innovation and strategic initiatives, supporting sustainable long-term growth.

Negative Factors

Profitability Challenges

Negative profitability metrics indicate operational inefficiencies and cost management challenges, which could hinder financial performance and require strategic adjustments.

Softness in Automotive Market

Persistent weakness in the automotive market could limit growth in this segment, affecting overall revenue diversification and necessitating strategic focus on other growth areas.

Mobile Touch Revenue Decline

Declining Mobile Touch revenues, partly due to supply chain issues, suggest vulnerabilities in this segment, impacting revenue stability and requiring supply chain improvements.

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 through the sale of its semiconductor products, which include various components for mobile devices, personal computers, and smart home applications. The company earns money primarily by supplying its touch and display drivers to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Additionally, Synaptics has established strategic partnerships with major tech companies, allowing it to integrate its technologies into popular devices, thus expanding its market reach. The company also benefits from licensing its intellectual property related to its innovative technologies, providing a supplementary revenue stream. Notably, Synaptics' focus on emerging markets such as IoT and automotive applications further diversifies its revenue sources and drives growth.

Synaptics Financial Statement Overview

Summary

Synaptics is experiencing mixed financial results. Revenue growth is modest, but profitability is under pressure with negative margins. The balance sheet shows moderate leverage with a stable asset base, while cash flow performance is strong with significant free cash flow growth.

Income Statement

Synaptics shows a modest revenue growth of 3.24% in the TTM, but profitability metrics are concerning with negative net profit and EBIT margins. The gross profit margin is relatively stable at 43.65%, indicating some efficiency in cost management. However, the declining EBIT and EBITDA margins suggest operational challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.60 indicates moderate leverage, which is manageable but should be monitored. The return on equity is negative, reflecting recent losses, but the equity ratio remains healthy at 54.34%, suggesting a stable asset base.

Cash Flow

Synaptics demonstrates strong free cash flow growth of 36.25% in the TTM, indicating effective cash management. The operating cash flow to net income ratio is 0.70, showing decent cash generation relative to earnings, though the free cash flow to net income ratio of 0.79 suggests room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.11B	1.07B	959.40M	1.36B	1.74B	1.34B
Gross Profit	484.10M	480.40M	439.80M	715.90M	943.10M	611.20M
EBITDA	82.60M	69.40M	49.90M	339.30M	498.20M	289.90M
Net Income	-45.30M	-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	459.90M	452.50M	876.90M	934.30M	876.00M	836.30M
Total Debt	880.20M	880.20M	1.02B	1.03B	1.04B	914.80M
Total Liabilities	1.18B	1.19B	1.36B	1.37B	1.59B	1.26B
Stockholders Equity	1.40B	1.39B	1.47B	1.24B	1.27B	967.20M
Cash Flow
Free Cash Flow	144.70M	106.20M	-31.70M	297.30M	401.60M	298.10M
Operating Cash Flow	183.60M	142.00M	135.90M	331.50M	462.70M	319.20M
Investing Cash Flow	-240.00M	-297.90M	-157.70M	-6.00M	-482.70M	-522.60M
Financing Cash Flow	-338.30M	-331.40M	-25.10M	-221.30M	14.30M	274.10M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 73.41 is below the 20-day moving average (MA) of 73.91, above the 50-day MA of 70.25, and above the 200-day MA of 65.38, indicating a bullish trend. The MACD of 1.76 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 11.94 is Positive, 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
SIMO	72 Outperform	$3.04B	30.84	11.88%	2.22%	-2.26%	9.74%
DIOD	70 Outperform	$2.35B	36.28	3.47%	―	10.45%	4.37%
FORM	68 Neutral	$4.49B	110.74	4.16%	―	2.29%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	61 Neutral	$2.05B	118.06	2.53%	2.27%	10.50%	-52.00%
VSH	55 Neutral	$2.02B	-26.68	-3.59%	2.68%	-0.84%	-189.44%
SYNA	52 Neutral	$2.90B	-62.94	-3.16%	―	13.24%	-129.14%

Synaptics Corporate Events

Synaptics Holds Annual Meeting, Elects Directors

On October 28, 2025, Synaptics held its Annual Meeting, where shareholders voted on several key proposals. The company successfully elected six directors, ratified the appointment of KPMG LLP as its independent auditor, and approved amendments to its 2019 Equity and Incentive Compensation Plan and Employee Stock Purchase Plan. Additionally, shareholders gave advisory approval to the compensation of Synaptics’ named executive officers for fiscal year 2025.