Synaptics Inc Shows Mixed Performance in Guru Analysis

Synaptics Inc receives a mixed rating of 54% in a guru analysis, indicating room for improvement. Key areas like revenue growth and earnings persistence fell short, which could impact investor sentiment.

Date: 08-02-2025

AI Rating: 5

General Overview

In the recent report on Synaptics Inc (SYNA), the stock is evaluated under Martin Zweig's Growth Investor model. The overall rating of 54% suggests that while the stock does show some strengths, there are several areas needing improvement that could affect its attractiveness to investors.

Revenue Growth and Earnings Challenges

One critical area highlighted in the report is the Revenue Growth. The stock has passed the sales growth rate test but has failed in demonstrating revenue growth in relation to EPS growth. This discrepancy suggests that despite sales increasing, earnings are not keeping pace, which could raise red flags for potential investors.

Net Income and EPS Concerns

The report emphasizes the importance of earnings growth and EPS progression. Currently, there is positive earnings growth for the current quarter, and the EPS growth for this period exceeds that of the prior three quarters and the historical growth rate. However, the firm has failed to show a long-term earnings growth rate, pointing to volatility and inconsistency, factors that could deter investors looking for stable growth.

Debt Issues

Another negative indicator is the firm’s failed Total Debt/Equity Ratio. High levels of debt can hinder a company's financial flexibility, making it more susceptible to economic downturns. Investors often view excessive debt as a risk factor, influencing their decisions on buying or selling off shares.

Positive Signals

Despite the challenges, the report mentions some positive indicators, including a strong performance in the P/E ratio and positive insider transactions. The presence of insider buying can often boost investor confidence, signaling that those with the most information about the company believe in its future potential.

Stocks: SYNA