470.67 USD
-9.33 (-1.94%)
Last: Jan 30, 2026, 10:44 AM
Overall SNPS gets a fundamental rating of 4 out of 10. We evaluated SNPS against 278 industry peers in the Software industry. While SNPS belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, SNPS is valued expensive at the moment.
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.
- 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.
1.2 Ratios
- SNPS's Return On Assets of 2.76% is fine compared to the rest of the industry. SNPS outperforms 63.67% of its industry peers.
- With a decent Return On Equity value of 4.70%, SNPS is doing good in the industry, outperforming 67.27% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 1.62%, SNPS is in the better half of the industry, outperforming 65.47% of the companies in the same industry.
- SNPS had an Average Return On Invested Capital over the past 3 years of 8.72%. This is below the industry average of 10.73%.
- The 3 year average ROIC (8.72%) for SNPS is well above the current ROIC(1.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROIC | 1.62% |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
1.3 Margins
- With an excellent Profit Margin value of 18.89%, SNPS belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
- In the last couple of years the Profit Margin of SNPS has remained more or less at the same level.
- SNPS has a Operating Margin of 12.97%. This is in the better half of the industry: SNPS outperforms 78.06% of its industry peers.
- In the last couple of years the Operating Margin of SNPS has declined.
- SNPS's Gross Margin of 76.98% is fine compared to the rest of the industry. SNPS outperforms 72.66% 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 | 12.97% | ||
| PM (TTM) | 18.89% | ||
| GM | 76.98% |
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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SNPS is destroying value.
- Compared to 1 year ago, SNPS has more shares outstanding
- SNPS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for SNPS is higher compared to a year ago.
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 65.11% of its industry peers.
- SNPS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- SNPS has a worse Debt to Equity ratio (0.48) than 65.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.32 |
ROIC/WACC0.15
WACC11.01%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that SNPS should not have too much problems paying its short term obligations.
- SNPS's Current ratio of 1.62 is in line compared to the rest of the industry. SNPS outperforms 50.00% of its industry peers.
- SNPS has a Quick Ratio of 1.52. 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 Quick ratio (1.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- SNPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
- SNPS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
- Looking at the last year, SNPS shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
- The Revenue has been growing by 13.87% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
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 14.48% on average per year.
- Based on estimates for the next years, SNPS will show a quite strong growth in Revenue. The Revenue will grow by 15.79% on average per year.
EPS Next Y12.73%
EPS Next 2Y15.35%
EPS Next 3Y16.34%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y23.03%
Revenue Next 3Y19.06%
Revenue Next 5Y15.79%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 36.23, which means the current valuation is very expensive for SNPS.
- SNPS's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, SNPS is valued a bit more expensive.
- A Price/Forward Earnings ratio of 32.14 indicates a quite 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 25.72. SNPS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.23 | ||
| Fwd PE | 32.14 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 64.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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 16.34% in the coming years.
PEG (NY)2.85
PEG (5Y)1.95
EPS Next 2Y15.35%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
- SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SYNOPSYS INC / SNPS 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.
How profitable is SYNOPSYS INC (SNPS) stock?
SYNOPSYS INC (SNPS) has a profitability rating of 7 / 10.
What is the expected EPS growth for SYNOPSYS INC (SNPS) stock?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to grow by 12.73% in the next year.