SYNOPSYS INC (SNPS) Stock Fundamental Analysis

NASDAQ:SNPS • US8716071076

424.66 USD
+10.66 (+2.57%)
At close: Mar 2, 2026
421.66 USD
-3 (-0.71%)
After Hours: 3/2/2026, 5:02:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, SNPS scores 4 out of 10 in our fundamental rating. SNPS was compared to 276 industry peers in the Software industry. SNPS has a medium profitability rating, but doesn't score so well on its financial health evaluation. SNPS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
  • 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.
SNPS Yearly Net Income VS EBIT VS OCF VS FCFSNPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5B -10B -15B

1.2 Ratios

  • SNPS has a better Return On Assets (2.33%) than 64.49% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.61%, SNPS is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
  • SNPS has a better Return On Invested Capital (1.80%) than 67.03% of its industry peers.
  • 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 last Return On Invested Capital (1.80%) for SNPS is well below the 3 year average (8.72%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
Industry RankSector Rank
ROA 2.33%
ROE 3.61%
ROIC 1.8%
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • With a decent Profit Margin value of 13.76%, SNPS is doing good in the industry, outperforming 79.35% of the companies in the same industry.
  • SNPS's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 12.29%, SNPS is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
  • SNPS's Operating Margin has declined in the last couple of years.
  • SNPS has a better Gross Margin (75.14%) than 66.67% 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 RankSector Rank
OM 12.29%
PM (TTM) 13.76%
GM 75.14%
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%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • SNPS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
  • Compared to 1 year ago, SNPS has a worse debt to assets ratio.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • SNPS has an Altman-Z score of 3.43. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
  • SNPS has a Altman-Z score of 3.43. This is in the better half of the industry: SNPS outperforms 68.84% of its industry peers.
  • A Debt/Equity ratio of 0.33 indicates that SNPS is not too dependend on debt financing.
  • SNPS has a Debt to Equity ratio of 0.33. This is in the lower half of the industry: SNPS underperforms 61.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Altman-Z 3.43
ROIC/WACC0.17
WACC10.78%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B

2.3 Liquidity

  • SNPS has a Current Ratio of 1.36. 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 1.36, SNPS is in line with its industry, outperforming 41.30% of the companies in the same industry.
  • A Quick Ratio of 1.26 indicates that SNPS should not have too much problems paying its short term obligations.
  • The Quick ratio of SNPS (1.26) is worse than 63.04% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.26
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.77% over the past year.
  • The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
  • SNPS shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.88%.
  • The Revenue has been growing by 13.87% on average over the past years. This is quite good.
EPS 1Y (TTM)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%

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 14.48% yearly.
  • SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.92% yearly.
EPS Next Y12.88%
EPS Next 2Y15.28%
EPS Next 3Y16.25%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y22.98%
Revenue Next 3Y18.94%
Revenue Next 5Y14.92%

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 stable.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.93 indicates a quite expensive valuation of SNPS.
  • Compared to the rest of the industry, the Price/Earnings ratio of SNPS is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of SNPS to the average of the S&P500 Index (27.07), we can say SNPS is valued inline with the index average.
  • SNPS is valuated rather expensively with a Price/Forward Earnings ratio of 24.60.
  • SNPS's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, SNPS is valued at the same level.
Industry RankSector Rank
PE 30.93
Fwd PE 24.6
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • SNPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 42.48
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • SNPS has a very decent profitability rating, which may justify a higher PE ratio.
  • SNPS's earnings are expected to grow with 16.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)1.67
EPS Next 2Y15.28%
EPS Next 3Y16.25%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SNPS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SYNOPSYS INC

NASDAQ:SNPS (3/2/2026, 5:02:21 PM)

After market: 421.66 -3 (-0.71%)

424.66

+10.66 (+2.57%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners93.54%
Inst Owner Change0.1%
Ins Owners0.41%
Ins Owner Change1.67%
Market Cap81.25B
Revenue(TTM)8.01B
Net Income(TTM)1.10B
Analysts80.65
Price Target565.22 (33.1%)
Short Float %2.43%
Short Ratio2.16
Dividend
Industry RankSector 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)2
Avg EPS beat(2)3.13%
Min EPS beat(2)2.36%
Max EPS beat(2)3.9%
EPS beat(4)3
Avg EPS beat(4)0.41%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)1.16%
EPS beat(12)9
Avg EPS beat(12)1.05%
EPS beat(16)13
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)0
Avg Revenue beat(16)-4.49%
PT rev (1m)-0.12%
PT rev (3m)-0.2%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)8.9%
EPS NY rev (1m)0.13%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 30.93
Fwd PE 24.6
P/S 10.15
P/FCF N/A
P/OCF 33.26
P/B 2.66
P/tB N/A
EV/EBITDA 42.48
EPS(TTM)13.73
EY3.23%
EPS(NY)17.26
Fwd EY4.07%
FCF(TTM)-75.28
FCFYN/A
OCF(TTM)12.77
OCFY3.01%
SpS41.85
BVpS159.67
TBVpS-45.06
PEG (NY)2.4
PEG (5Y)1.67
Graham Number222.1
Profitability
Industry RankSector Rank
ROA 2.33%
ROE 3.61%
ROCE 2.27%
ROIC 1.8%
ROICexc 1.89%
ROICexgc 40.48%
OM 12.29%
PM (TTM) 13.76%
GM 75.14%
FCFM N/A
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
ROICexc(3y)12.25%
ROICexc(5y)13.51%
ROICexgc(3y)51.97%
ROICexgc(5y)66.2%
ROCE(3y)11.04%
ROCE(5y)12.54%
ROICexgc growth 3Y-30.11%
ROICexgc growth 5Y-5.25%
ROICexc growth 3Y-54.14%
ROICexc growth 5Y-30.5%
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%
F-Score3
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Debt/EBITDA 4.89
Cap/Depr 1584.42%
Cap/Sales 210.37%
Interest Coverage 250
Cash Conversion 119.31%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.26
Altman-Z 3.43
F-Score3
WACC10.78%
ROIC/WACC0.17
Cap/Depr(3y)948.17%
Cap/Depr(5y)656.53%
Cap/Sales(3y)84.22%
Cap/Sales(5y)54.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
EPS Next Y12.88%
EPS Next 2Y15.28%
EPS Next 3Y16.25%
EPS Next 5Y14.48%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%
Revenue Next Year36.66%
Revenue Next 2Y22.98%
Revenue Next 3Y18.94%
Revenue Next 5Y14.92%
EBIT growth 1Y-21.56%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year82.5%
EBIT Next 3Y37.9%
EBIT Next 5Y15.28%
FCF growth 1Y-1620.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.78%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%

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 6 / 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 12.88% in the next year.