SYNAPTICS Inc (SYNA) Stock Forecast 2025 - AI Price Prediction & Analysis

Corporate Identity

SYNAPTICS Inc (Stock Symbol: SYNA) is a prominent company operating within the Manufacturing sector, with a specific focus on the Semiconductors & Related Devices industry. The company's shares are publicly traded on the Nasdaq exchange.

Leadership & Workforce

The organization employs approximately 1,771 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.

Market Classification

With a market capitalization of $3 billion, SYNAPTICS Inc is classified as a mid-cap stock. Mid-cap companies often represent businesses in a growth phase, having moved beyond the early startup stage but still possessing significant expansion potential. These stocks can offer an attractive balance between the growth potential of smaller companies and the stability of larger corporations.

Sector & Industry Context

Operating within the Manufacturing sector, SYNAPTICS Inc is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.

Revenue & Growth Analysis

SYNAPTICS Inc generates annual revenues of $1 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.

Profitability Analysis

The company achieves a 12.2% net profit margin, demonstrating healthy profitability and efficient operations. This margin level provides comfortable coverage for reinvestment in the business, dividend payments, and building financial reserves for future opportunities or challenges.

Gross profit margin stands at 41.0%, a healthy margin indicating strong pricing power relative to direct production costs and efficient supply chain management.

Operating margin is 14.6%, indicating moderate operational leverage where fixed costs consume a significant portion of gross profits.

Market Valuation

Current market capitalization stands at $3 billion . This mid-cap classification represents companies that have proven their business models but still have significant growth runway. Mid-caps often offer an attractive blend of growth potential and established operations.

Return on Investment Metrics

Return on Equity (ROE) measures 18.5%, showing strong ability to generate shareholder value from invested capital. This solid ROE suggests effective management and a business model that efficiently converts equity investments into profits.

Return on Assets (ROA) stands at 7.9%, showing moderate asset utilization common in capital-intensive industries like manufacturing or utilities.

Return on Invested Capital (ROIC) measures 10.7%, suggesting returns roughly in line with typical corporate cost of capital, indicating value maintenance but limited value creation.

Cash Flow Generation

Free cash flow generation of $381 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.

Operating cash flow reaches $413 million , with year-over-year growth of 43.9%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.

Strategic Market Position

SYNAPTICS Inc strategically competes in the highly dynamic Semiconductors & Related Devices marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.

Industry Competitive Landscape

SYNAPTICS Inc competes within the Manufacturing sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.

Operational Efficiency

The company shows positive operational efficiency through free cash flow generation of $381 million annually , with year-over-year cash flow growth of 43.9%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.

Margin & Pricing Power Analysis

The company maintains a 41.0% gross margin indicating healthy pricing power relative to direct production costs. This margin level suggests the company has successfully differentiated its products or services, allowing it to command prices meaningfully above input costs. Maintaining these margins requires ongoing investment in brand, technology, or other differentiating factors.

Operating margin of 14.6% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.

Asset Utilization Efficiency

Asset turnover ratio of 0.65x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.

Financial Strength & Leverage

Current ratio of 3.17 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.