SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - Nasdaq - US8716071076 - Common Stock - Currency: USD
SNPS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. SNPS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SNPS has a correct valuation and a medium growth rate. These ratings would make SNPS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
Each year in the past 5 years SNPS has been profitable.
Each year in the past 5 years SNPS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SNPS (16.18%) is better than 92.63% of its industry peers.
The Return On Equity of SNPS (22.68%) is better than 89.12% of its industry peers.
SNPS's Return On Invested Capital of 9.28% is amongst the best of the industry. SNPS outperforms 84.21% 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 11.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROIC | 9.28% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
1.3 Margins
The Profit Margin of SNPS (34.75%) is better than 94.39% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
Looking at the Operating Margin, with a value of 20.67%, SNPS belongs to the top of the industry, outperforming 88.77% of the companies in the same industry.
SNPS's Operating Margin has improved in the last couple of years.
SNPS has a better Gross Margin (79.64%) than 79.65% 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 | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNPS is still creating some value.
SNPS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SNPS has more shares outstanding
Compared to 1 year ago, SNPS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.41 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS has a Altman-Z score of 12.41. This is amongst the best in the industry. SNPS outperforms 90.18% of its industry peers.
The Debt to FCF ratio of SNPS is 0.01, which is an excellent value as it means it would take SNPS, only 0.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, SNPS belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that SNPS is not too dependend on debt financing.
The Debt to Equity ratio of SNPS (0.00) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 12.41 |
ROIC/WACC0.85
WACC10.9%
2.3 Liquidity
SNPS has a Current Ratio of 2.68. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
SNPS has a Current ratio of 2.68. This is in the better half of the industry: SNPS outperforms 70.18% of its industry peers.
A Quick Ratio of 2.51 indicates that SNPS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.51, SNPS is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.84%.
SNPS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.99% yearly.
Looking at the last year, SNPS shows a small growth in Revenue. The Revenue has grown by 1.33% in the last year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
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 12.72% yearly.
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue Next Year10.35%
Revenue Next 2Y11.45%
Revenue Next 3Y12.48%
Revenue Next 5Y12.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
SNPS is valuated quite expensively with a Price/Earnings ratio of 32.14.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 63.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SNPS is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.72, the valuation of SNPS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SNPS is valued a bit cheaper than the industry average as 70.88% of the companies are valued more expensively.
SNPS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 23.72 |
4.2 Price Multiples
69.47% of the companies in the same industry are more expensive than SNPS, based on the Enterprise Value to EBITDA ratio.
SNPS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.61 | ||
| EV/EBITDA | 39.06 |
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.
SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
SNPS's earnings are expected to grow with 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)1.34
EPS Next 2Y14.07%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
413.32
-2.33 (-0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.02%
Inst Owner Change0.92%
Ins Owners0.41%
Ins Owner Change4.45%
Market Cap63.91B
Analysts82.96
Price Target631.78 (52.85%)
Short Float %2.47%
Short Ratio3.12
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)2
Avg EPS beat(2)2.76%
Min EPS beat(2)0.99%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.52%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)11
Avg EPS beat(12)2.26%
EPS beat(16)13
Avg EPS beat(16)2.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)1
Avg Revenue beat(16)-1.38%
PT rev (1m)-1.38%
PT rev (3m)-3.43%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 23.72 | ||
| P/S | 10.53 | ||
| P/FCF | 52.61 | ||
| P/OCF | 44.77 | ||
| P/B | 6.87 | ||
| P/tB | 11.23 | ||
| EV/EBITDA | 39.06 |
EPS(TTM)12.86
EY3.11%
EPS(NY)17.42
Fwd EY4.22%
FCF(TTM)7.86
FCFY1.9%
OCF(TTM)9.23
OCFY2.23%
SpS39.27
BVpS60.18
TBVpS36.8
PEG (NY)2.36
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROCE | 11.75% | ||
| ROIC | 9.28% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 30.42% | ||
| OM | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% | ||
| FCFM | 20.01% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
ROICexc(3y)17.76%
ROICexc(5y)15.35%
ROICexgc(3y)76.09%
ROICexgc(5y)68.74%
ROCE(3y)16.24%
ROCE(5y)14.32%
ROICexcg growth 3Y-16.41%
ROICexcg growth 5Y-15.6%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.99% | ||
| Profit Quality | 57.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 12.41 |
F-Score5
WACC10.9%
ROIC/WACC0.85
Cap/Depr(3y)179.62%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.28%
Cap/Sales(5y)8.78%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
Revenue Next Year10.35%
Revenue Next 2Y11.45%
Revenue Next 3Y12.48%
Revenue Next 5Y12.63%
EBIT growth 1Y-10.49%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.61%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y5.21%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-15.94%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%