452.95 USD
-24.31 (-5.09%)
452.35 USD
-0.6 (-0.13%)
We assign a fundamental rating of 4 out of 10 to SNPS. SNPS was compared to 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SNPS had positive earnings in the past year.
In the past year SNPS had a positive cash flow from operations.
SNPS had positive earnings in 4 of the past 5 years.
Of the past 5 years SNPS 4 years had a positive operating cash flow.
1.2 Ratios
SNPS's Return On Assets of 4.14% is fine compared to the rest of the industry. SNPS outperforms 70.71% of its industry peers.
The Return On Equity of SNPS (7.23%) is better than 70.71% of its industry peers.
The Return On Invested Capital of SNPS (1.95%) is better than 66.43% of its industry peers.
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 10.98%.
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 Rank | Sector 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%
1.3 Margins
SNPS has a Profit Margin of 31.04%. This is amongst the best in the industry. SNPS outperforms 91.07% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
SNPS has a better Operating Margin (17.16%) than 83.21% 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 78.57% of the companies in the same industry.
SNPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
2.2 Solvency
An Altman-Z score of 3.20 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS has a Altman-Z score (3.20) which is in line with its industry peers.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
SNPS's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. SNPS is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.2 |
ROIC/WACC0.18
WACC10.93%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SNPS should not have too much problems paying its short term obligations.
SNPS has a Current ratio of 1.62. This is comparable to the rest of the industry: SNPS outperforms 51.07% of its industry peers.
A Quick Ratio of 1.51 indicates that SNPS should not have too much problems paying its short term obligations.
SNPS has a Quick ratio of 1.51. This is comparable to the rest of the industry: SNPS outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
SNPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
Measured over the past years, SNPS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.54% on average per year.
EPS 1Y (TTM)-2.99%
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.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.94% yearly.
EPS Next Y10.76%
EPS Next 2Y16.88%
EPS Next 3Y18.58%
EPS Next 5Y15.84%
Revenue Next Year37.25%
Revenue Next 2Y23.32%
Revenue Next 3Y18.79%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.87, the valuation of SNPS can be described as expensive.
SNPS's Price/Earnings is on the same level as the industry average.
SNPS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 31.48, which means the current valuation is very expensive for SNPS.
The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.87 | ||
| Fwd PE | 31.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNPS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 71.74 |
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 decent profitability rating of SNPS may justify a higher PE ratio.
A more expensive valuation may be justified as SNPS's earnings are expected to grow with 18.58% in the coming years.
PEG (NY)3.24
PEG (5Y)1.88
EPS Next 2Y16.88%
EPS Next 3Y18.58%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
452.95
-24.31 (-5.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change19.45%
Ins Owners0.42%
Ins Owner Change8.25%
Market Cap86.32B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts79.35
Price Target559.48 (23.52%)
Short Float %2.28%
Short Ratio1.77
Dividend
| Industry Rank | Sector 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)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)-1.22%
PT rev (3m)-14.4%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-38.45%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-14.41%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)7.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.87 | ||
| Fwd PE | 31.48 | ||
| P/S | 13.41 | ||
| P/FCF | N/A | ||
| P/OCF | 59.87 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 71.74 |
EPS(TTM)12.99
EY2.87%
EPS(NY)14.39
Fwd EY3.18%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.67%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)3.24
PEG (5Y)1.88
Graham Number205.8
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC10.93%
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)-2.99%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y10.76%
EPS Next 2Y16.88%
EPS Next 3Y18.58%
EPS Next 5Y15.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%37.83%
Revenue Next Year37.25%
Revenue Next 2Y23.32%
Revenue Next 3Y18.79%
Revenue Next 5Y15.94%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year24.47%
EBIT Next 3Y26.84%
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 3 / 10.
What is the earnings growth outlook for SYNOPSYS INC?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to grow by 10.76% in the next year.