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SYNOPSYS INC (SNPS) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SNPS - US8716071076 - Common Stock

466.76 USD
+3.02 (+0.65%)
Last: 12/5/2025, 5:25:59 PM
466.5 USD
-0.26 (-0.06%)
After Hours: 12/5/2025, 5:25:59 PM
Fundamental Rating

5

SNPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are some minor concerns on its financial health. SNPS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
SNPS had positive earnings in each of the past 5 years.
Each year in the past 5 years SNPS had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

The Return On Assets of SNPS (4.14%) is better than 70.46% of its industry peers.
The Return On Equity of SNPS (7.23%) is better than 70.82% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for SNPS is in line with the industry average of 12.03%.
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 RankSector 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%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

The Profit Margin of SNPS (31.04%) is better than 90.75% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
The Operating Margin of SNPS (17.16%) is better than 82.92% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.12%, SNPS is in the better half of the industry, outperforming 78.29% 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 RankSector 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%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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4

2. Health

2.1 Basic Checks

SNPS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SNPS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SNPS has more shares outstanding
The debt/assets ratio for SNPS has been reduced compared to a year ago.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

SNPS has an Altman-Z score of 3.06. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
SNPS has a Altman-Z score of 3.06. This is in the better half of the industry: SNPS outperforms 60.14% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
SNPS has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: SNPS underperforms 64.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 3.06
ROIC/WACC0.18
WACC10.87%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

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 51.25% of its industry peers.
SNPS has a Quick Ratio of 1.51. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.51, SNPS perfoms like the industry average, outperforming 46.62% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.51
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

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.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
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

The Earnings Per Share is expected to grow by 12.59% on average over the next years. This is quite good.
Based on estimates for the next years, SNPS will show a quite strong growth in Revenue. The Revenue will grow by 16.71% on average per year.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 34.60, SNPS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS is on the same level as its industry peers.
SNPS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.41.
With a Price/Forward Earnings ratio of 32.48, SNPS can be considered very expensive at the moment.
SNPS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SNPS to the average of the S&P500 Index (35.40), we can say SNPS is valued inline with the index average.
Industry RankSector Rank
PE 34.6
Fwd PE 32.48
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 68.38
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100

4.3 Compensation for Growth

SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y3.59%
EPS Next 3Y9.87%

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0

5. Dividend

5.1 Amount

SNPS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SYNOPSYS INC

NASDAQ:SNPS (12/5/2025, 5:25:59 PM)

After market: 466.5 -0.26 (-0.06%)

466.76

+3.02 (+0.65%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)09-09 2025-09-09/amc
Earnings (Next)12-10 2025-12-10/amc
Inst Owners80.76%
Inst Owner Change19.4%
Ins Owners0.42%
Ins Owner Change8.2%
Market Cap86.70B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts77.93
Price Target566.37 (21.34%)
Short Float %2.28%
Short Ratio1.77
Dividend
Industry RankSector 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)-12.42%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
Industry RankSector Rank
PE 34.6
Fwd PE 32.48
P/S 13.47
P/FCF N/A
P/OCF 60.14
P/B 3.14
P/tB N/A
EV/EBITDA 68.38
EPS(TTM)13.49
EY2.89%
EPS(NY)14.37
Fwd EY3.08%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY1.66%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)N/A
PEG (5Y)1.44
Graham Number212.42
Profitability
Industry RankSector 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 RankSector 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 3.06
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)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 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.


How financially healthy is SYNOPSYS INC?

The financial health rating of SYNOPSYS INC (SNPS) is 4 / 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.