516.31 USD
+8.12 (+1.6%)
517 USD
+0.69 (+0.13%)
Overall SNPS gets a fundamental rating of 4 out of 10. We evaluated SNPS against 276 industry peers in the Software industry. While SNPS has a great profitability rating, there are quite some concerns on its financial health. SNPS is valied quite expensively at the moment, while it does show a decent growth rate.
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 each of the past 5 years.
- Each year in the past 5 years SNPS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SNPS (2.76%) is better than 64.13% of its industry peers.
- SNPS has a better Return On Equity (4.70%) than 67.39% of its industry peers.
- SNPS has a Return On Invested Capital of 1.62%. This is in the better half of the industry: SNPS outperforms 65.58% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SNPS is below the industry average of 10.78%.
- The last Return On Invested Capital (1.62%) for SNPS is well below the 3 year average (8.72%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROIC | 1.62% |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
1.3 Margins
- SNPS has a Profit Margin of 18.89%. This is amongst the best in the industry. SNPS outperforms 81.16% of its industry peers.
- SNPS's Profit Margin has been stable in the last couple of years.
- The Operating Margin of SNPS (12.97%) is better than 78.26% of its industry peers.
- In the last couple of years the Operating Margin of SNPS has declined.
- SNPS's Gross Margin of 76.98% is fine compared to the rest of the industry. SNPS outperforms 72.83% 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 | 12.97% | ||
| PM (TTM) | 18.89% | ||
| GM | 76.98% |
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNPS is destroying 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 worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.49 indicates that SNPS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SNPS (3.49) is better than 65.94% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that SNPS is not too dependend on debt financing.
- SNPS's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. SNPS is outperformed by 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.49 |
ROIC/WACC0.15
WACC10.97%
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 of 1.62. This is comparable to the rest of the industry: SNPS outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.52 indicates that SNPS should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.52, SNPS perfoms like the industry average, outperforming 46.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- SNPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
- The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
- The Revenue has grown by 15.12% in the past year. This is quite good.
- Measured over the past years, SNPS shows a quite strong growth in Revenue. The Revenue has been growing by 13.87% on average per year.
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
3.2 Future
- The Earnings Per Share is expected to grow by 14.48% 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 15.79% on average per year.
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y14.48%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
Revenue Next 5Y15.79%
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.
- 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
- With a Price/Earnings ratio of 39.75, SNPS can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as SNPS.
- SNPS is valuated rather expensively when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 35.20, the valuation of SNPS can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SNPS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 35.2 |
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 | 68.11 |
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 16.32% in the coming years.
PEG (NY)3.08
PEG (5Y)2.14
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
- SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
516.31
+8.12 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners93.54%
Inst Owner Change0.76%
Ins Owners0.41%
Ins Owner Change9.35%
Market Cap98.39B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target565.91 (9.61%)
Short Float %2.33%
Short Ratio2.01
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)-4.27%
Min EPS beat(2)-10.9%
Max EPS beat(2)2.36%
EPS beat(4)3
Avg EPS beat(4)0.56%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)5
Avg EPS beat(8)0.25%
EPS beat(12)9
Avg EPS beat(12)0.93%
EPS beat(16)12
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.62%
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)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)0
Avg Revenue beat(16)-4.52%
PT rev (1m)1.43%
PT rev (3m)-0.97%
EPS NQ rev (1m)7.45%
EPS NQ rev (3m)12.53%
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 35.2 | ||
| P/S | 13.95 | ||
| P/FCF | N/A | ||
| P/OCF | 64.79 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.11 |
EPS(TTM)12.99
EY2.52%
EPS(NY)14.67
Fwd EY2.84%
FCF(TTM)-80.45
FCFYN/A
OCF(TTM)7.97
OCFY1.54%
SpS37.02
BVpS148.65
TBVpS-59.04
PEG (NY)3.08
PEG (5Y)2.14
Graham Number208.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROCE | 2.06% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.74% | ||
| ROICexgc | 36.84% | ||
| OM | 12.97% | ||
| PM (TTM) | 18.89% | ||
| GM | 76.98% | ||
| FCFM | N/A |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
ROICexc(3y)12.25%
ROICexc(5y)13.51%
ROICexgc(3y)51.97%
ROICexgc(5y)66.2%
ROCE(3y)11.04%
ROCE(5y)12.54%
ROICexgc growth 3Y-30.11%
ROICexgc growth 5Y-5.25%
ROICexc growth 3Y-54.14%
ROICexc growth 5Y-30.5%
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
F-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.55 | ||
| Cap/Depr | 2551.48% | ||
| Cap/Sales | 238.88% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 96.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.49 |
F-Score3
WACC10.97%
ROIC/WACC0.15
Cap/Depr(3y)948.17%
Cap/Depr(5y)656.53%
Cap/Sales(3y)84.22%
Cap/Sales(5y)54.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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 5Y14.48%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
Revenue Next 5Y15.79%
EBIT growth 1Y-32.51%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year84.56%
EBIT Next 3Y32.44%
EBIT Next 5Y15.27%
FCF growth 1Y-1460.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.93%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%
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 for 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.
What is the expected EPS growth for SYNOPSYS INC (SNPS) stock?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to grow by 12.9% in the next year.