525.18 USD
+10.69 (+2.08%)
525 USD
-0.18 (-0.03%)
Overall SNPS gets a fundamental rating of 4 out of 10. We evaluated SNPS against 276 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are concerns on its financial health. SNPS has a expensive valuation and it also scores bad on growth.
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
The Return On Assets of SNPS (4.14%) is better than 69.93% of its industry peers.
Looking at the Return On Equity, with a value of 7.23%, SNPS is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
SNPS has a Return On Invested Capital of 1.95%. This is in the better half of the industry: SNPS outperforms 66.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNPS is in line with the industry average of 10.78%.
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
SNPS has a better Profit Margin (31.04%) than 89.86% 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 82.97% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
The Gross Margin of SNPS (79.12%) is better than 78.26% 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.
Compared to 1 year ago, SNPS has more shares outstanding
The number of shares outstanding for SNPS has been increased compared to 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 3.40. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.40, SNPS is in the better half of the industry, outperforming 64.13% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
SNPS's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. SNPS is outperformed by 65.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.4 |
ROIC/WACC0.18
WACC10.87%
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.
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
The earnings per share for SNPS have decreased by -1.67% in the last year.
SNPS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%37.83%
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 15.84% yearly.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.94% yearly.
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y15.84%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
Revenue Next 5Y15.94%
3.3 Evolution
The EPS 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 40.43, which means the current valuation is very expensive for SNPS.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.19. SNPS is valued slightly more expensive when compared to this.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 35.81.
The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
When comparing the Price/Forward Earnings ratio of SNPS to the average of the S&P500 Index (23.88), we can say SNPS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.43 | ||
| Fwd PE | 35.81 |
4.2 Price Multiples
SNPS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 76.7 |
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 excellent profitability rating of SNPS may justify a higher PE ratio.
SNPS's earnings are expected to grow with 16.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.13
PEG (5Y)2.18
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
525.18
+10.69 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change9.07%
Market Cap100.08B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts81.29
Price Target567.48 (8.05%)
Short Float %2.33%
Short Ratio2.01
Dividend
| Industry Rank | Sector 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)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)5
Avg EPS beat(8)0.24%
EPS beat(12)9
Avg EPS beat(12)0.86%
EPS beat(16)12
Avg EPS beat(16)1.03%
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)0.2%
PT rev (3m)-0.97%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.43 | ||
| Fwd PE | 35.81 | ||
| P/S | 15.55 | ||
| P/FCF | N/A | ||
| P/OCF | 69.42 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.7 |
EPS(TTM)12.99
EY2.47%
EPS(NY)14.67
Fwd EY2.79%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.44%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)3.13
PEG (5Y)2.18
Graham Number205.8
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 | 3.4 |
F-Score2
WACC10.87%
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)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y15.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%37.83%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
Revenue Next 5Y15.94%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year23.73%
EBIT Next 3Y31.33%
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 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 8 / 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 12.9% in the next year.