525.18 USD
+10.69 (+2.08%)
517.8 USD
-7.38 (-1.41%)
Taking everything into account, SNPS scores 4 out of 10 in our fundamental rating. SNPS was compared to 276 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, SNPS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
In the past 5 years SNPS has always been profitable.
In the past 5 years SNPS always reported a positive cash flow from operatings.
1.2 Ratios
SNPS has a Return On Assets of 2.76%. This is in the better half of the industry: SNPS outperforms 64.13% of its industry peers.
SNPS's Return On Equity of 4.70% is fine compared to the rest of the industry. SNPS outperforms 67.39% of its industry peers.
SNPS has a better Return On Invested Capital (1.62%) than 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
With an excellent Profit Margin value of 18.89%, SNPS belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
In the last couple of years the Profit Margin of SNPS has remained more or less at the same level.
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.
SNPS's Gross Margin has been stable in the last couple of years.
| 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
SNPS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SNPS has more shares outstanding
Compared to 5 years ago, SNPS has more shares outstanding
SNPS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.58 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS's Altman-Z score of 3.58 is fine compared to the rest of the industry. SNPS outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that SNPS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, SNPS is doing worse than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.58 |
ROIC/WACC0.15
WACC10.93%
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's Current ratio of 1.62 is in line compared to the rest of the industry. SNPS outperforms 50.00% of its industry peers.
SNPS has a Quick Ratio of 1.52. 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 (1.52) which is in line with its industry peers.
| 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.
Looking at the last year, SNPS shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
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
Based on estimates for the next years, SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
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.
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
SNPS is valuated quite expensively with a Price/Earnings ratio of 40.43.
SNPS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. SNPS is valued slightly more expensive when compared to this.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 35.81.
SNPS's Price/Forward Earnings ratio is in line with the industry average.
SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.43 | ||
| Fwd PE | 35.81 |
4.2 Price Multiples
SNPS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 70.16 |
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.
A more expensive valuation may be justified as SNPS's earnings are expected to grow with 16.32% in the coming years.
PEG (NY)3.13
PEG (5Y)2.18
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% |
525.18
+10.69 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change0.76%
Ins Owners0.41%
Ins Owner Change9.35%
Market Cap100.08B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target567.48 (8.05%)
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 | 40.43 | ||
| Fwd PE | 35.81 | ||
| P/S | 14.19 | ||
| P/FCF | N/A | ||
| P/OCF | 65.9 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 70.16 |
EPS(TTM)12.99
EY2.47%
EPS(NY)14.67
Fwd EY2.79%
FCF(TTM)-80.45
FCFYN/A
OCF(TTM)7.97
OCFY1.52%
SpS37.02
BVpS148.65
TBVpS-59.04
PEG (NY)3.13
PEG (5Y)2.18
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 | 3.58 |
F-Score3
WACC10.93%
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.