SYNOPSYS INC (SNPS) Stock Fundamental Analysis
USA - NASDAQ:SNPS - US8716071076 - Common Stock
380.82 USD
-4.78 (-1.24%)
Taking everything into account, SNPS scores 5 out of 10 in our fundamental rating. SNPS was compared to 281 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
SNPS had positive earnings in the past year.
In the past year SNPS had a positive cash flow from operations.
SNPS had positive earnings in each of the past 5 years.
In the past 5 years SNPS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.14%, SNPS is in the better half of the industry, outperforming 70.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.23%, SNPS is in the better half of the industry, outperforming 71.53% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.95%, SNPS is doing good in the industry, outperforming 66.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNPS is in line with the industry average of 12.04%.
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
SNPS has a Profit Margin of 31.04%. This is amongst the best in the industry. SNPS outperforms 91.46% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
SNPS's Operating Margin of 17.16% is amongst the best of the industry. SNPS outperforms 83.63% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.12%, SNPS is doing good in the industry, outperforming 78.65% 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNPS is still creating some value.
Compared to 1 year ago, SNPS has more shares outstanding
Compared to 5 years ago, SNPS has more shares outstanding
SNPS has a better debt/assets ratio than last year.
2.2 Solvency
SNPS has an Altman-Z score of 2.63. This is not the best score and indicates that SNPS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.63, SNPS perfoms like the industry average, outperforming 58.01% of the companies in the same industry.
SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SNPS is somewhat dependend on debt financing.
SNPS has a worse Debt to Equity ratio (0.52) than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.63 |
ROIC/WACC0.18
WACC11.05%
2.3 Liquidity
SNPS has a Current Ratio of 1.62. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.62, SNPS is in line with its industry, outperforming 51.25% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that SNPS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, SNPS is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
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.
SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
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
Based on estimates for the next years, SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.59% on average per year.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.71% yearly.
EPS Next Y-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SNPS is valuated quite expensively with a Price/Earnings ratio of 28.23.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than 64.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. SNPS is around the same levels.
The Price/Forward Earnings ratio is 26.50, which means the current valuation is very expensive for SNPS.
62.28% of the companies in the same industry are more expensive than SNPS, based on the Price/Forward Earnings ratio.
SNPS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.23 | ||
| Fwd PE | 26.5 |
4.2 Price Multiples
SNPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 60.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 58.23 |
4.3 Compensation for Growth
The excellent profitability rating of SNPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y3.59%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SNPS (11/21/2025, 9:57:04 AM)
380.82
-4.78 (-1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change19.46%
Ins Owners0.42%
Ins Owner Change9.19%
Market Cap70.74B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts77.93
Price Target566.37 (48.72%)
Short Float %2.2%
Short Ratio1.2
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)-1.16%
PT rev (3m)-10.02%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-15.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.23 | ||
| Fwd PE | 26.5 | ||
| P/S | 10.99 | ||
| P/FCF | N/A | ||
| P/OCF | 49.07 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 58.23 |
EPS(TTM)13.49
EY3.54%
EPS(NY)14.37
Fwd EY3.77%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY2.04%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)N/A
PEG (5Y)1.18
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 | 2.63 |
F-Score2
WACC11.05%
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-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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 3 / 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 -2.17% in the next year.