Logo image of SNPS

SYNOPSYS INC (SNPS) Stock Fundamental Analysis

USA - NASDAQ:SNPS - US8716071076 - Common Stock

480.11 USD
+54.71 (+12.86%)
Last: 9/18/2025, 8:24:54 PM
479.36 USD
-0.75 (-0.16%)
After Hours: 9/18/2025, 8:24:54 PM
Fundamental Rating

5

SNPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. While SNPS belongs to the best of the industry regarding profitability, there are concerns on its financial health. SNPS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

1. Profitability

1.1 Basic Checks

SNPS had positive earnings in the past year.
SNPS had a positive operating cash flow in the past year.
In the past 5 years SNPS has always been profitable.
SNPS had a positive operating cash flow in each of the past 5 years.
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

SNPS has a better Return On Assets (4.14%) than 71.07% of its industry peers.
SNPS's Return On Equity of 7.23% is fine compared to the rest of the industry. SNPS outperforms 71.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.95%, SNPS is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
SNPS had an Average Return On Invested Capital over the past 3 years of 12.78%. This is in line with the industry average of 11.76%.
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

Looking at the Profit Margin, with a value of 31.04%, SNPS belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
In the last couple of years the Profit Margin of SNPS has grown nicely.
With an excellent Operating Margin value of 17.16%, SNPS belongs to the best of the industry, outperforming 84.29% 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 (79.12%) than 77.86% 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 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

More info and screens

3

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.
SNPS has more shares outstanding than it did 5 years ago.
SNPS has a better debt/assets ratio than last year.
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

An Altman-Z score of 2.85 indicates that SNPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SNPS has a Altman-Z score (2.85) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
SNPS has a worse Debt to Equity ratio (0.52) than 66.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 2.85
ROIC/WACC0.18
WACC11.03%
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

SNPS has a Current Ratio of 1.62. 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 Current ratio (1.62) which is in line with 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.
SNPS has a Quick ratio (1.51) which is comparable to the rest of the 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

More info and screens

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%.
Measured over the past years, SNPS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.99% on average per year.
Looking at the last year, SNPS shows a small growth in Revenue. The Revenue has grown by 8.00% in the last year.
SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
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 12.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.84% on average over the next years. This is quite good.
EPS Next Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue Next Year15.24%
Revenue Next 2Y25.34%
Revenue Next 3Y20.33%
Revenue Next 5Y19.84%

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 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

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

SNPS is valuated quite expensively with a Price/Earnings ratio of 35.59.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 64.29% of the companies listed in the same industry.
SNPS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 28.16, which means the current valuation is very expensive for SNPS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 69.64% of the companies listed in the same industry.
SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 35.59
Fwd PE 28.16
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

SNPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 60.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 63.4
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100

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 excellent profitability rating of SNPS may justify a higher PE ratio.
SNPS's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.48
PEG (5Y)1.48
EPS Next 2Y12.85%
EPS Next 3Y14.49%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for SNPS!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

SYNOPSYS INC

NASDAQ:SNPS (9/18/2025, 8:24:54 PM)

After market: 479.36 -0.75 (-0.16%)

480.11

+54.71 (+12.86%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)09-09 2025-09-09/amc
Earnings (Next)12-02 2025-12-02/amc
Inst Owners78.52%
Inst Owner Change1.59%
Ins Owners0.38%
Ins Owner Change8.81%
Market Cap89.18B
Analysts82.86
Price Target580.67 (20.95%)
Short Float %1.75%
Short Ratio1.27
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)-7.75%
PT rev (3m)-4.26%
EPS NQ rev (1m)-16.95%
EPS NQ rev (3m)-18.34%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)11.22%
Revenue NQ rev (3m)16.76%
Revenue NY rev (1m)3.64%
Revenue NY rev (3m)4.63%
Valuation
Industry RankSector Rank
PE 35.59
Fwd PE 28.16
P/S 13.86
P/FCF N/A
P/OCF 61.86
P/B 3.23
P/tB N/A
EV/EBITDA 63.4
EPS(TTM)13.49
EY2.81%
EPS(NY)17.05
Fwd EY3.55%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY1.62%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)2.48
PEG (5Y)1.48
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%
ROICexcg growth 3Y-16.41%
ROICexcg 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 2.85
F-Score2
WACC11.03%
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 Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year15.24%
Revenue Next 2Y25.34%
Revenue Next 3Y20.33%
Revenue Next 5Y19.84%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.89%
EBIT Next 3Y19.4%
EBIT Next 5YN/A
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%