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SYNOPSYS INC (SNPS) Stock Fundamental Analysis

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

477.14 USD
+1.39 (+0.29%)
Last: 12/26/2025, 8:16:30 PM
476.2 USD
-0.94 (-0.2%)
After Hours: 12/26/2025, 8:16:30 PM
Fundamental Rating

4

SNPS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are some minor concerns on its financial health. SNPS does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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7

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.
Of the past 5 years SNPS 4 years were profitable.
Of the past 5 years SNPS 4 years 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 70.50% 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 70.50% of the companies in the same industry.
SNPS's Return On Invested Capital of 1.95% is fine compared to the rest of the industry. SNPS outperforms 66.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SNPS is in line with the industry average of 10.78%.
The 3 year average ROIC (12.78%) for SNPS is well above the current ROIC(1.95%). The reason for the recent decline needs to be investigated.
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

With an excellent Profit Margin value of 31.04%, SNPS belongs to the best of the industry, outperforming 91.01% of the companies in the same industry.
SNPS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.16%, SNPS belongs to the best of the industry, outperforming 83.09% of the companies in the same industry.
SNPS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.12%, SNPS is doing good in the industry, outperforming 78.06% of the companies in the same industry.
SNPS's Gross Margin has been stable in the last couple of years.
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.
There is no outstanding debt for SNPS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 3.20. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SNPS (3.20) is better than 60.43% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SNPS is not doing good in the industry: 65.83% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 3.2
ROIC/WACC0.18
WACC10.99%
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.
The Current ratio of SNPS (1.62) is comparable to the rest of the industry.
A Quick Ratio of 1.51 indicates that SNPS should not have too much problems paying its short term obligations.
SNPS's Quick ratio of 1.51 is in line compared to the rest of the industry. SNPS outperforms 46.40% of its industry peers.
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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3

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.
The Revenue is expected to grow by 15.94% on average over the next years. This is quite good.
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

When comparing the EPS 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 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

A Price/Earnings ratio of 36.73 indicates a quite expensive valuation of SNPS.
SNPS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.57. SNPS is valued slightly more expensive when compared to this.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 32.53.
The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
The average S&P500 Price/Forward Earnings ratio is at 24.04. SNPS is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 36.73
Fwd PE 32.53
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 in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 71.73
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 SNPS does not grow enough to justify the current Price/Earnings ratio.
SNPS has a very decent profitability rating, which 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)2.85
PEG (5Y)1.98
EPS Next 2Y15.44%
EPS Next 3Y16.32%

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0

5. Dividend

5.1 Amount

No dividends for SNPS!.
Industry RankSector Rank
Dividend Yield 0%

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SYNOPSYS INC

NASDAQ:SNPS (12/26/2025, 8:16:30 PM)

After market: 476.2 -0.94 (-0.2%)

477.14

+1.39 (+0.29%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners96.34%
Inst Owner Change19.56%
Ins Owners0.42%
Ins Owner Change9.07%
Market Cap90.93B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts79.35
Price Target567.48 (18.93%)
Short Float %2.48%
Short Ratio2.06
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)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)-2.27%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-25.69%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.82%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
Industry RankSector Rank
PE 36.73
Fwd PE 32.53
P/S 14.13
P/FCF N/A
P/OCF 63.07
P/B 3.29
P/tB N/A
EV/EBITDA 71.73
EPS(TTM)12.99
EY2.72%
EPS(NY)14.67
Fwd EY3.07%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.59%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)2.85
PEG (5Y)1.98
Graham Number205.8
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 3.2
F-Score2
WACC10.99%
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 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 7 / 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 grow by 12.9% in the next year.