SYNAPTICS Inc (SYNA) Stock Analysis and Metrics

Sector: Technology Industry: Semiconductors CIK: 0000817720

P/B 2.14

P/E -66.18

P/S 2.70

Market Cap 3.00 Bn

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,...

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, display driver, and touch semiconductor solutions. Its customers include major OEMs, such as smartphone and tablet manufacturers, PC manufacturers, and automotive companies.

Synaptics generates revenue through its wide range of products and solutions, which are sold into markets for PC product applications, mobile product applications, and other electronic devices. The company's IoT market solutions consist of wireless connectivity (Wi-Fi, Bluetooth, and GPS) products, System-on-Chip (SoC) products, display and touch integrated circuits for use in automobiles, and a wide range of audio and video products and solutions. These products enable smart devices at the edge of a network, such as smart assistant speakers, over-the-top multimedia devices, wireless speakers, voice-driven intelligent devices, personal voice and audio products, set-top boxes, video interface solutions for docking stations, high-speed connectivity for virtual reality devices, video surveillance, voice over IP SoCs, image processing solutions for use in printers, and fax modems.

In the PC product applications market, Synaptics provides custom and semi-custom product solutions for navigation, cursor control, access to devices or applications through fingerprint authentication, and human presence detection solutions for many of the world's premier PC OEMs. These functions are offered as both stand-alone and integrated touchpads plus fingerprint biometric solutions and as chipsets with integrated visual sensing software algorithms.

Synaptics' mobile product applications include smartphones, tablets, large touchscreen applications, as well as a variety of mobile, handheld, and entertainment devices. The company's position within the industry is strong, with key competitors including Broadcom, MediaTek, NXP, AmLogic, and Ambarella. Synaptics has a diverse range of products and solutions, which has helped it maintain a competitive advantage.

Synaptics' family of product solutions includes Voice Over IP (VoIP), DECT Cordless, Ultra-Low Power Edge AI, Wireless Connectivity, AudioSmart, ConnectSmart, DisplayLink, VideoSmart, ImagingSmart, Natural ID, TouchPad, SecurePad, ClickPad, ForcePad, ClearPad, ClearView, and TouchView. These products cover a wide range of applications, including VoIP home and office products, digital cordless solutions, AI-powered wireless devices, video compression technology, imaging and modem technology, capacitive position and force sensing technology, and display systems and circuit technology.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Semiconductors

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	NVDA	Nvidia Corp	4,276.26 Bn	43.11	22.85	10.48 Bn
2	AVGO	Broadcom Inc.	1,690.87 Bn	89.31	28.22	64.23 Bn
3	TSM	Taiwan Semiconductor Manufacturing Co Ltd	1,514.32 Bn	29.36	12.71	31.18 Bn
4	AMD	Advanced Micro Devices Inc	343.27 Bn	103.83	10.72	3.87 Bn
5	MU	Micron Technology Inc	269.16 Bn	31.52	7.20	15.28 Bn
6	INTC	Intel Corp	249.55 Bn	1,260.33	4.67	46.55 Bn
7	QCOM	Qualcomm Inc/De	195.62 Bn	35.30	4.42	14.81 Bn
8	TXN	Texas Instruments Inc	163.92 Bn	32.50	9.49	14.05 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.34	3.95
EV to Cash from Ops.	18.74	-331.60
EV to Debt	4.12	86.14
EV to EBIT	-50.24	-55.96
EV to EBITDA	52.86	20.88
EV to Free Cash Flow [EV/FCF]	22.24	-4.09
EV to Market Cap	1.15	0.80
EV to Revenue	3.10	18.79
Price to Book Value [P/B]	2.14	5.23
Price to Earnings [P/E]	-66.18	12.47

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	2.29
Dividend Payout Ratio %	0.00	8.00
Dividend per Basic Share	0.00	0.62
FCF Dividend Payout Ratio %	0.00	10.38
Interest Coverage	-2.05	8.19

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	20.17	-155.77
Cash and Equivalents Growth (1y) %	-46.12	44.44
Dividend Growth (1y) %	0.00	5.30
EBIAT Growth (1y) %	-143.40	34.22
EBITDA Growth (1y) %	314.65	47.50
EBIT Growth (1y) %	-30.48	30.14
EBT Growth (1y) %	13.86	47.04
EPS Growth (1y) %	-128.89	36.18
FCF Growth (1y) %	260.61	252.76
Gross Profit Growth (1y) %	6.72	43.92

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.43	0.49
Cash Payout Ratio	0.00	0.09
Cash Ratio	1.76	2.23
Current Ratio	2.86	5.43
Debt to Equity Ratio	0.60	0.34
Interest Cover Ratio	-2.05	8.19
Times Interest Earned	-2.05	8.19

Profitability

Metric	Value	Industry
EBITDA Margin %	7.70	-112.44
EBIT Margin %	-6.18	-92.10
EBT Margin %	-9.19	-132.39
Gross Margin %	43.60	47.63
Net Profit Margin %	-4.10	-133.41

SYNAPTICS Inc (NASDAQ: SYNA)