SYNAPTICS Inc (NASDAQ: SYNA)

Sector: Technology Industry: Semiconductors CIK: 0000817720
Market Cap 3.18 Bn
P/B 2.27
P/E -70.15
P/S 2.87
ROIC (Qtr) -3.61
Div Yield % 0.00
Rev 1y % (Qtr) 13.50
Total Debt (Qtr) 835.40 Mn
Debt/Equity (Qtr) 0.60

About

Synaptics Inc., a leading developer and fabless supplier of premium mixed signal semiconductor solutions, operates in the technology industry, providing connectivity, sensors, and AI-enhanced processor solutions to original equipment manufacturers (OEMs) that design Internet of Things (IoT) products and devices for various applications. The company's solutions cater to various markets, including IoT, personal computer (PC), and mobile. Synaptics' primary products and services include wireless connectivity, voice and speech, video, fingerprint, authentication,...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 154.70M exceeds capital expenditure of 28.90M by 5.35x, indicating strong organic growth funding capability.
  • Retained earnings of 1.17B provide full 1.40x coverage of long-term debt 835.40M, indicating strong internal capital position.
  • Operating cash flow of 183.60M fully covers other non-current liabilities 79.10M by 2.32x, showing strong long-term stability.
  • Strong cash position of 459.90M provides 2.71x coverage of other current liabilities 169.50M, indicating excellent liquidity.
  • Tangible assets of 1.44B provide robust 8.47x coverage of other current liabilities 169.50M, indicating strong asset backing.

Bear case

  • Operating cash flow of 183.60M barely covers its investment activities of (240M), with a coverage ratio of -0.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (240M) provide weak support for R&D spending of 359.90M, which is -0.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 459.90M provide limited coverage of acquisition spending of (201.10M), which is -2.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 183.60M shows concerning coverage of stock compensation expenses of 122.30M, with a 1.50 ratio indicating potential earnings quality issues.
  • Operating cash flow of 183.60M provides minimal -3.24x coverage of tax expenses of (56.60M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,516.69 Bn 45.53 24.14 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,678.13 Bn 32.54 14.09 31.18 Bn
3 AVGO Broadcom Inc. 1,624.80 Bn 70.26 25.43 65.14 Bn
4 MU Micron Technology Inc 386.61 Bn 32.46 9.14 12.43 Bn
5 AMD Advanced Micro Devices Inc 330.88 Bn 100.08 10.33 3.87 Bn
6 INTC Intel Corp 300.63 Bn 1,518.33 5.63 46.55 Bn
7 QCOM Qualcomm Inc/De 195.07 Bn 35.20 4.40 14.81 Bn
8 TXN Texas Instruments Inc 173.86 Bn 34.48 10.07 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.41 4.22
EV to Cash from Ops. EV/CFO 19.72 -369.72
EV to Debt EV to Debt 4.33 90.98
EV to EBIT EV/EBIT -52.86 -66.75
EV to EBITDA EV/EBITDA 55.62 23.41
EV to Free Cash Flow [EV/FCF] EV/FCF 23.41 -8.88
EV to Market Cap EV to Market Cap 1.14 0.80
EV to Revenue EV/Rev 3.26 20.68
Price to Book Value [P/B] P/B 2.27 5.21
Price to Earnings [P/E] P/E -70.15 11.55
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.91
Interest Coverage Int. cover (Qtr) -2.05 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.17 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.12 45.60
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -143.40 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 314.65 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -30.48 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 13.86 39.93
EPS Growth (1y) % EPS 1y % (Qtr) -128.89 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 260.61 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.72 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 1.76 2.23
Current Ratio Curr Ratio (Qtr) 2.86 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.60 0.34
Interest Cover Ratio Int Coverage (Qtr) -2.05 8.38
Times Interest Earned Times Interest Earned (Qtr) -2.05 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.70 -112.38
EBIT Margin % EBIT Margin % (Qtr) -6.18 -91.98
EBT Margin % EBT Margin % (Qtr) -9.19 -132.25
Gross Margin % Gross Margin % (Qtr) 43.60 47.73
Net Profit Margin % Net Margin % (Qtr) -4.10 -133.26