SYNOPSYS INC (SNPS) Stock Fundamental Analysis
USA - NASDAQ:SNPS - US8716071076 - Common Stock
389.83 USD
-4.1 (-1.04%)
390.9 USD
+1.07 (+0.27%)
SNPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year SNPS was profitable.
In the past year SNPS had a positive cash flow from operations.
In the past 5 years SNPS has always been profitable.
In the past 5 years SNPS always reported a positive cash flow from operatings.
1.2 Ratios
SNPS has a better Return On Assets (4.14%) than 70.46% of its industry peers.
SNPS has a better Return On Equity (7.23%) than 71.53% of its industry peers.
With a decent Return On Invested Capital value of 1.95%, SNPS is doing good in the industry, outperforming 65.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNPS is in line with the industry average of 12.07%.
The last Return On Invested Capital (1.95%) for SNPS is well below the 3 year average (12.78%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
| 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 91.46% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
SNPS's Operating Margin of 17.16% is amongst the best of the industry. SNPS outperforms 83.99% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
SNPS's Gross Margin of 79.12% is fine compared to the rest of the industry. SNPS outperforms 79.00% 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.
Compared to 5 years ago, SNPS has more shares outstanding
SNPS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that SNPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SNPS has a Altman-Z score of 2.66. This is comparable to the rest of the industry: SNPS outperforms 57.30% of its industry peers.
SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SNPS is somewhat dependend on debt financing.
The Debt to Equity ratio of SNPS (0.52) is worse than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.18
WACC11.11%
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.
SNPS has a Current ratio of 1.62. This is comparable to the rest of the industry: SNPS outperforms 51.25% of its industry peers.
A Quick Ratio of 1.51 indicates that SNPS should not have too much problems paying 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
SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
Measured over the past years, SNPS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.99% on average per year.
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
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-2.17%
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
With a Price/Earnings ratio of 28.90, SNPS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
SNPS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 27.13, which means the current valuation is very expensive for SNPS.
63.70% of the companies in the same industry are more expensive than SNPS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. SNPS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.13 |
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 60.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 58.78 |
4.3 Compensation for Growth
SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
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 |
389.83
-4.1 (-1.04%)
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 Cap72.41B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts77.93
Price Target566.37 (45.29%)
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)-1.16%
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 | 28.9 | ||
| Fwd PE | 27.13 | ||
| P/S | 11.25 | ||
| P/FCF | N/A | ||
| P/OCF | 50.23 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 58.78 |
EPS(TTM)13.49
EY3.46%
EPS(NY)14.37
Fwd EY3.69%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY1.99%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)N/A
PEG (5Y)1.2
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 | 2.66 |
F-Score2
WACC11.11%
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.