SYNOPSYS INC (SNPS) Stock Fundamental Analysis
USA - NASDAQ:SNPS - US8716071076 - Common Stock
451.34 USD
+8.41 (+1.9%)
SNPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. While SNPS has a great profitability rating, there are quite some concerns on its financial health. SNPS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
SNPS had positive earnings in each of the past 5 years.
SNPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SNPS (4.14%) is better than 70.88% of its industry peers.
SNPS's Return On Equity of 7.23% is fine compared to the rest of the industry. SNPS outperforms 71.58% of its industry peers.
SNPS has a Return On Invested Capital of 1.95%. This is in the better half of the industry: SNPS outperforms 66.32% of its industry peers.
SNPS had an Average Return On Invested Capital over the past 3 years of 12.78%. This is in line with the industry average of 11.89%.
The 3 year average ROIC (12.78%) for SNPS is well above the current ROIC(1.95%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROIC | 1.95% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.78%
ROIC(5y)11.28%
1.3 Margins
The Profit Margin of SNPS (31.04%) is better than 91.58% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
SNPS has a better Operating Margin (17.16%) than 83.86% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
The Gross Margin of SNPS (79.12%) is better than 78.25% of its industry peers.
In the last couple of years the Gross Margin of SNPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.03%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SNPS is creating some value.
The number of shares outstanding for SNPS has been increased compared to 1 year ago.
The number of shares outstanding for SNPS has been increased compared to 5 years ago.
Compared to 1 year ago, SNPS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 indicates that SNPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SNPS has a Altman-Z score (2.94) which is comparable to the rest of the industry.
SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SNPS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SNPS is not doing good in the industry: 65.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.94 |
ROIC/WACC0.18
WACC11.03%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SNPS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, SNPS is in line with its industry, outperforming 51.23% of the companies in the same industry.
SNPS has a Quick Ratio of 1.51. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SNPS (1.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.51% over the past year.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 8.00% in the past year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
3.2 Future
SNPS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.59% yearly.
The Revenue is expected to grow by 16.71% on average over the next years. This is quite good.
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.46, which means the current valuation is very expensive for SNPS.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than 63.51% of the companies in the same industry.
SNPS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.19.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 31.51.
Based on the Price/Forward Earnings ratio, SNPS is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, SNPS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.46 | ||
| Fwd PE | 31.51 |
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 61.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 65.68 |
4.3 Compensation for Growth
The excellent profitability rating of SNPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y3.42%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SNPS (10/31/2025, 1:01:07 PM)
451.34
+8.41 (+1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change0.79%
Ins Owners0.42%
Ins Owner Change8.11%
Market Cap83.84B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts79.29
Price Target573.02 (26.96%)
Short Float %2.29%
Short Ratio1.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-10.9%
Max EPS beat(2)6.25%
EPS beat(4)3
Avg EPS beat(4)0.22%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)0.89%
EPS beat(12)10
Avg EPS beat(12)1.29%
EPS beat(16)13
Avg EPS beat(16)1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.62%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-5.73%
Revenue beat(16)0
Avg Revenue beat(16)-4.55%
PT rev (1m)-1.32%
PT rev (3m)-7.1%
EPS NQ rev (1m)-25.72%
EPS NQ rev (3m)-39.42%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-15.1%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)12.62%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.46 | ||
| Fwd PE | 31.51 | ||
| P/S | 13.03 | ||
| P/FCF | N/A | ||
| P/OCF | 58.15 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 65.68 |
EPS(TTM)13.49
EY2.99%
EPS(NY)14.32
Fwd EY3.17%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY1.72%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)N/A
PEG (5Y)1.39
Graham Number212.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROCE | 2.47% | ||
| ROIC | 1.95% | ||
| ROICexc | 2.07% | ||
| ROICexgc | 40.27% | ||
| OM | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% | ||
| FCFM | N/A |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.78%
ROIC(5y)11.28%
ROICexc(3y)17.68%
ROICexc(5y)15.31%
ROICexgc(3y)75.65%
ROICexgc(5y)68.48%
ROCE(3y)16.17%
ROCE(5y)14.27%
ROICexgc growth 3Y-16.41%
ROICexgc growth 5Y-15.59%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.03%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score2
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.01 | ||
| Cap/Depr | 5156.15% | ||
| Cap/Sales | 261.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.94 |
F-Score2
WACC11.03%
ROIC/WACC0.18
Cap/Depr(3y)179.61%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.65%
Cap/Sales(5y)9%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year17.77%
EBIT Next 3Y25.97%
EBIT Next 5Y24.99%
FCF growth 1Y-1098.34%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-18.58%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%
SYNOPSYS INC / SNPS FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SNPS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SNPS.
What is the valuation status of SYNOPSYS INC (SNPS) stock?
ChartMill assigns a valuation rating of 2 / 10 to SYNOPSYS INC (SNPS). This can be considered as Overvalued.
How profitable is SYNOPSYS INC (SNPS) stock?
SYNOPSYS INC (SNPS) has a profitability rating of 8 / 10.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SNPS) is 3 / 10.
What is the earnings growth outlook for SYNOPSYS INC?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to decline by -2.19% in the next year.