SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - Nasdaq - US8716071076 - Common Stock
We assign a fundamental rating of 6 out of 10 to SNPS. SNPS was compared to 285 industry peers in the Software industry. SNPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNPS is quite expensive at the moment. It does show a decent growth rate. These ratings would make SNPS suitable for quality investing!
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.
1.2 Ratios
The Return On Assets of SNPS (17.31%) is better than 93.91% of its industry peers.
Looking at the Return On Equity, with a value of 25.17%, SNPS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.28%, SNPS belongs to the best of the industry, outperforming 86.74% of the companies in the same industry.
SNPS had an Average Return On Invested Capital over the past 3 years of 12.83%. This is in line with the industry average of 12.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 25.17% | ||
| ROIC | 10.28% |
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
SNPS has a better Profit Margin (36.94%) than 96.06% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
The Operating Margin of SNPS (22.13%) is better than 89.61% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.68%, SNPS is doing good in the industry, outperforming 77.42% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.13% | ||
| PM (TTM) | 36.94% | ||
| GM | 79.68% |
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.
SNPS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNPS has an improved debt to assets ratio.
2.2 Solvency
SNPS has an Altman-Z score of 14.09. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.09, SNPS belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
SNPS has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
SNPS has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. SNPS outperforms 80.65% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that SNPS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, SNPS is in the better half of the industry, outperforming 66.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 14.09 |
ROIC/WACC0.92
WACC11.19%
2.3 Liquidity
SNPS has a Current Ratio of 2.44. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
SNPS has a better Current ratio (2.44) than 67.38% of its industry peers.
A Quick Ratio of 2.30 indicates that SNPS has no problem at all paying its short term obligations.
The Quick ratio of SNPS (2.30) is better than 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
SNPS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.45%, which is quite good.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
SNPS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.87%.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.31%
3.2 Future
The Earnings Per Share is expected to grow by 11.81% 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 12.78% on average per year.
EPS Next Y13.59%
EPS Next 2Y14.38%
EPS Next 3Y15.14%
EPS Next 5Y11.81%
Revenue Next Year10.62%
Revenue Next 2Y11.8%
Revenue Next 3Y12.76%
Revenue Next 5Y12.78%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.56 indicates a quite expensive valuation of SNPS.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than the industry average as 65.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. SNPS is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 34.83, which means the current valuation is very expensive for SNPS.
Based on the Price/Forward Earnings ratio, SNPS is valued a bit cheaper than 65.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, SNPS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.56 | ||
| Fwd PE | 34.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNPS is valued a bit cheaper than 69.18% of the companies in the same industry.
SNPS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.67 | ||
| EV/EBITDA | 46.78 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
SNPS's earnings are expected to grow with 15.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.91
PEG (5Y)1.65
EPS Next 2Y14.38%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SYNOPSYS INC
NASDAQ:SNPS (1/21/2025, 8:00:02 PM)
After market: 530.14 +0.39 (+0.07%)529.75
+3.05 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.53%
Inst Owner Change-0.26%
Ins Owners0.4%
Ins Owner Change3.56%
Market Cap81.89B
Analysts83.7
Price Target654.19 (23.49%)
Short Float %1.92%
Short Ratio2.72
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)1.79%
Min EPS beat(2)0.99%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.23%
Min EPS beat(4)-0.41%
Max EPS beat(4)2.6%
EPS beat(8)7
Avg EPS beat(8)1.76%
EPS beat(12)10
Avg EPS beat(12)1.81%
EPS beat(16)13
Avg EPS beat(16)2%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.5%
Revenue beat(16)1
Avg Revenue beat(16)-1.26%
PT rev (1m)0.3%
PT rev (3m)-0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.56 | ||
| Fwd PE | 34.83 | ||
| P/S | 13.36 | ||
| P/FCF | 72.67 | ||
| P/OCF | 58.2 | ||
| P/B | 9.11 | ||
| P/tB | 15.32 | ||
| EV/EBITDA | 46.78 |
EPS(TTM)13.39
EY2.53%
EPS(NY)15.21
Fwd EY2.87%
FCF(TTM)7.29
FCFY1.38%
OCF(TTM)9.1
OCFY1.72%
SpS39.64
BVpS58.16
TBVpS34.59
PEG (NY)2.91
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 25.17% | ||
| ROCE | 13.01% | ||
| ROIC | 10.28% | ||
| ROICexc | 16.81% | ||
| ROICexgc | 39.25% | ||
| OM | 22.13% | ||
| PM (TTM) | 36.94% | ||
| GM | 79.68% | ||
| FCFM | 18.39% |
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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 94.93% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 1665.49 | ||
| Cash Conversion | 85.23% | ||
| Profit Quality | 49.79% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 14.09 |
F-Score6
WACC11.19%
ROIC/WACC0.92
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)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
EPS Next Y13.59%
EPS Next 2Y14.38%
EPS Next 3Y15.14%
EPS Next 5Y11.81%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.31%
Revenue Next Year10.62%
Revenue Next 2Y11.8%
Revenue Next 3Y12.76%
Revenue Next 5Y12.78%
EBIT growth 1Y0.7%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year18.35%
EBIT Next 3Y14.23%
EBIT Next 5YN/A
FCF growth 1Y-7.15%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-17.39%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%