Skip to Content

Synaptics Inc SYNA

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Synaptics Expands Margins as Internet of Things Shines Again; Raising FVE to $120; Shares Overvalued

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

No-moat Synaptics finished the third quarter with both the top- and bottom-line falling in line with management's prior guidance. The firm's overall profitability continued to improve as the business's product mix skews more toward higher-margin products. This strategic shift toward higher-margin products has been successful, with the third quarter clocking in the highest adjusted gross margins in the company's history. We expect this shift to continue to bear fruit. As a result, we are raising our fair value estimate to $120 per share from $91. With shares trading near $137 after hours, we recommend investors wait for a pullback before committing capital to the name.

Read Full Analysis

Company Profile

Business Description

Synaptics develops human interface solutions that allow touch, display, fingerprint, video, audio, and voice functions for smartphones, PCs, automotive vehicles, consumer Internet of Things products, as well as other electronic devices.

Contact
1251 McKay Drive
San Jose, CA, 95131
T +1 408 904-1100
Sector Technology
Industry Semiconductors
Most Recent Earnings Mar 31, 2021
Fiscal Year End Jun 30, 2021
Stock Type Cyclical
Employees 1,387

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.