SYNOPSYS INC (SNPS) Fundamental Analysis & Valuation

NASDAQ:SNPS • US8716071076

Current stock price

395.795 USD
-1.27 (-0.32%)
Last:

This SNPS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SNPS Profitability Analysis

1.1 Basic Checks

  • SNPS had positive earnings in the past year.
  • In the past year SNPS had a positive cash flow from operations.
  • Each year in the past 5 years SNPS has been profitable.
  • SNPS had a positive operating cash flow in each of the past 5 years.
SNPS Yearly Net Income VS EBIT VS OCF VS FCFSNPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5B -10B -15B

1.2 Ratios

  • SNPS has a better Return On Assets (2.33%) than 65.09% of its industry peers.
  • SNPS's Return On Equity of 3.61% is fine compared to the rest of the industry. SNPS outperforms 65.45% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.80%, SNPS is in the better half of the industry, outperforming 65.09% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SNPS is below the industry average of 10.99%.
  • The 3 year average ROIC (8.72%) for SNPS is well above the current ROIC(1.80%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.33%
ROE 3.61%
ROIC 1.8%
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • The Profit Margin of SNPS (13.76%) is better than 80.36% of its industry peers.
  • SNPS's Profit Margin has been stable in the last couple of years.
  • SNPS's Operating Margin of 12.29% is fine compared to the rest of the industry. SNPS outperforms 79.27% of its industry peers.
  • In the last couple of years the Operating Margin of SNPS has declined.
  • Looking at the Gross Margin, with a value of 75.14%, SNPS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SNPS has remained more or less at the same level.
Industry RankSector Rank
OM 12.29%
PM (TTM) 13.76%
GM 75.14%
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. SNPS Health Analysis

2.1 Basic Checks

  • SNPS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for SNPS has been increased compared to 1 year ago.
  • Compared to 5 years ago, SNPS has more shares outstanding
  • The debt/assets ratio for SNPS is higher compared to a year ago.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • SNPS has an Altman-Z score of 3.32. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SNPS (3.32) is better than 68.00% of its industry peers.
  • A Debt/Equity ratio of 0.33 indicates that SNPS is not too dependend on debt financing.
  • SNPS has a worse Debt to Equity ratio (0.33) than 61.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Altman-Z 3.32
ROIC/WACC0.17
WACC10.82%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B

2.3 Liquidity

  • A Current Ratio of 1.36 indicates that SNPS should not have too much problems paying its short term obligations.
  • SNPS has a Current ratio (1.36) which is in line with its industry peers.
  • A Quick Ratio of 1.26 indicates that SNPS should not have too much problems paying its short term obligations.
  • The Quick ratio of SNPS (1.26) is worse than 62.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.26
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SNPS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.77% over the past year.
  • Measured over the past years, SNPS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.54% on average per year.
  • Looking at the last year, SNPS shows a very strong growth in Revenue. The Revenue has grown by 31.88%.
  • The Revenue has been growing by 13.87% on average over the past years. This is quite good.
EPS 1Y (TTM)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%

3.2 Future

  • Based on estimates for the next years, SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.44% on average per year.
  • The Revenue is expected to grow by 14.92% on average over the next years. This is quite good.
EPS Next Y13.4%
EPS Next 2Y15.87%
EPS Next 3Y17.01%
EPS Next 5Y14.44%
Revenue Next Year36.66%
Revenue Next 2Y23.02%
Revenue Next 3Y18.89%
Revenue Next 5Y14.92%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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2

4. SNPS Valuation Analysis

4.1 Price/Earnings Ratio

  • SNPS is valuated quite expensively with a Price/Earnings ratio of 28.83.
  • SNPS's Price/Earnings is on the same level as the industry average.
  • SNPS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.69 indicates a rather expensive valuation of SNPS.
  • SNPS's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. SNPS is around the same levels.
Industry RankSector Rank
PE 28.83
Fwd PE 22.69
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 60.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 40.94
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNPS does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of SNPS may justify a higher PE ratio.
  • A more expensive valuation may be justified as SNPS's earnings are expected to grow with 17.01% in the coming years.
PEG (NY)2.15
PEG (5Y)1.55
EPS Next 2Y15.87%
EPS Next 3Y17.01%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SNPS Dividend Analysis

5.1 Amount

  • SNPS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SNPS Fundamentals: All Metrics, Ratios and Statistics

SYNOPSYS INC

NASDAQ:SNPS (4/7/2026, 1:02:02 PM)

395.795

-1.27 (-0.32%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners90.86%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change1.88%
Market Cap75.82B
Revenue(TTM)8.01B
Net Income(TTM)1.10B
Analysts80
Price Target549.83 (38.92%)
Short Float %2.52%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.36%
Max EPS beat(2)3.92%
EPS beat(4)3
Avg EPS beat(4)0.41%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)1.05%
EPS beat(16)13
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)0
Avg Revenue beat(16)-4.49%
PT rev (1m)-2.72%
PT rev (3m)-3.11%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 28.83
Fwd PE 22.69
P/S 9.47
P/FCF N/A
P/OCF 31.04
P/B 2.48
P/tB N/A
EV/EBITDA 40.94
EPS(TTM)13.73
EY3.47%
EPS(NY)17.44
Fwd EY4.41%
FCF(TTM)-75.18
FCFYN/A
OCF(TTM)12.75
OCFY3.22%
SpS41.8
BVpS159.47
TBVpS-45.01
PEG (NY)2.15
PEG (5Y)1.55
Graham Number221.96
Profitability
Industry RankSector Rank
ROA 2.33%
ROE 3.61%
ROCE 2.27%
ROIC 1.8%
ROICexc 1.89%
ROICexgc 40.48%
OM 12.29%
PM (TTM) 13.76%
GM 75.14%
FCFM N/A
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
ROICexc(3y)12.25%
ROICexc(5y)13.51%
ROICexgc(3y)51.97%
ROICexgc(5y)66.2%
ROCE(3y)11.04%
ROCE(5y)12.54%
ROICexgc growth 3Y-30.11%
ROICexgc growth 5Y-5.25%
ROICexc growth 3Y-54.14%
ROICexc growth 5Y-30.5%
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
F-Score3
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Debt/EBITDA 4.89
Cap/Depr 1584.42%
Cap/Sales 210.37%
Interest Coverage 250
Cash Conversion 119.31%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.26
Altman-Z 3.32
F-Score3
WACC10.82%
ROIC/WACC0.17
Cap/Depr(3y)948.17%
Cap/Depr(5y)656.53%
Cap/Sales(3y)84.22%
Cap/Sales(5y)54.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
EPS Next Y13.4%
EPS Next 2Y15.87%
EPS Next 3Y17.01%
EPS Next 5Y14.44%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%
Revenue Next Year36.66%
Revenue Next 2Y23.02%
Revenue Next 3Y18.89%
Revenue Next 5Y14.92%
EBIT growth 1Y-21.56%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year39.09%
EBIT Next 3Y29.79%
EBIT Next 5Y15.51%
FCF growth 1Y-1620.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.78%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%

SYNOPSYS INC / SNPS Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SYNOPSYS INC (SNPS) stock?

ChartMill assigns a fundamental rating of 4 / 10 to SNPS.


What is the valuation status for SNPS stock?

ChartMill assigns a valuation rating of 2 / 10 to SYNOPSYS INC (SNPS). This can be considered as Overvalued.


Can you provide the profitability details for SYNOPSYS INC?

SYNOPSYS INC (SNPS) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for SNPS stock?

The Price/Earnings (PE) ratio for SYNOPSYS INC (SNPS) is 28.83 and the Price/Book (PB) ratio is 2.48.


What is the financial health of SYNOPSYS INC (SNPS) stock?

The financial health rating of SYNOPSYS INC (SNPS) is 3 / 10.