SYNOPSYS INC (SNPS) Fundamental Analysis & Valuation
NASDAQ:SNPS • US8716071076
Current stock price
438.45 USD
+19.65 (+4.69%)
At close:
438.45 USD
0 (0%)
After Hours:
This SNPS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SNPS Profitability Analysis
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.
- SNPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SNPS has a better Return On Assets (2.33%) than 64.94% of its industry peers.
- The Return On Equity of SNPS (3.61%) is better than 65.31% of its industry peers.
- With a decent Return On Invested Capital value of 1.80%, SNPS is doing good in the industry, outperforming 64.58% of the companies in the same industry.
- SNPS had an Average Return On Invested Capital over the past 3 years of 8.72%. This is below the industry average of 10.91%.
- The 3 year average ROIC (8.72%) for SNPS is well above the current ROIC(1.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.61% | ||
| ROIC | 1.8% |
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
- Looking at the Profit Margin, with a value of 13.76%, SNPS belongs to the top of the industry, outperforming 80.44% of the companies in the same industry.
- SNPS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 12.29%, SNPS is in the better half of the industry, outperforming 78.97% of the companies in the same industry.
- SNPS's Operating Margin has declined in the last couple of years.
- SNPS's Gross Margin of 75.14% is fine compared to the rest of the industry. SNPS outperforms 66.79% of its industry peers.
- SNPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.29% | ||
| PM (TTM) | 13.76% | ||
| GM | 75.14% |
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. SNPS Health Analysis
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 3.47 indicates that SNPS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.47, SNPS is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
- SNPS has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.33, SNPS is not doing good in the industry: 60.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.47 |
ROIC/WACC0.17
WACC10.4%
2.3 Liquidity
- SNPS has a Current Ratio of 1.36. 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 (1.36) is comparable to the rest of the industry.
- A Quick Ratio of 1.26 indicates that SNPS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.26, SNPS is doing worse than 62.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.26 |
3. SNPS Growth Analysis
3.1 Past
- SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.77%.
- 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.
- The Revenue has grown by 31.88% in the past year. This is a very strong growth!
- 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)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%
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 14.44% on average per year.
- The Revenue is expected to grow by 14.92% on average over the next years. This is quite good.
EPS Next Y13.53%
EPS Next 2Y15.89%
EPS Next 3Y17%
EPS Next 5Y14.44%
Revenue Next Year36.66%
Revenue Next 2Y23.02%
Revenue Next 3Y18.89%
Revenue Next 5Y14.92%
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. SNPS Valuation Analysis
4.1 Price/Earnings Ratio
- SNPS is valuated quite expensively with a Price/Earnings ratio of 31.93.
- SNPS's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, SNPS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 25.13, the valuation of SNPS can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
- When comparing the Price/Forward Earnings ratio of SNPS to the average of the S&P500 Index (38.16), we can say SNPS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 25.13 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 42.97 |
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 17.00% in the coming years.
PEG (NY)2.36
PEG (5Y)1.72
EPS Next 2Y15.89%
EPS Next 3Y17%
5. SNPS Dividend Analysis
5.1 Amount
- SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SNPS Fundamentals: All Metrics, Ratios and Statistics
438.45
+19.65 (+4.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-26 2026-05-26
Inst Owners91.1%
Inst Owner Change-0.01%
Ins Owners0.41%
Ins Owner Change1.88%
Market Cap83.99B
Revenue(TTM)8.01B
Net Income(TTM)1.10B
Analysts80
Price Target549.84 (25.41%)
Short Float %2.59%
Short Ratio2.11
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)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.36%
Max EPS beat(2)3.92%
EPS beat(4)3
Avg EPS beat(4)0.41%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)1.05%
EPS beat(16)13
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)0
Avg Revenue beat(16)-4.49%
PT rev (1m)-2.72%
PT rev (3m)-3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 25.13 | ||
| P/S | 10.49 | ||
| P/FCF | N/A | ||
| P/OCF | 34.38 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.97 |
EPS(TTM)13.73
EY3.13%
EPS(NY)17.45
Fwd EY3.98%
FCF(TTM)-75.18
FCFYN/A
OCF(TTM)12.75
OCFY2.91%
SpS41.8
BVpS159.47
TBVpS-45.01
PEG (NY)2.36
PEG (5Y)1.72
Graham Number221.958 (-49.38%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.61% | ||
| ROCE | 2.27% | ||
| ROIC | 1.8% | ||
| ROICexc | 1.89% | ||
| ROICexgc | 40.48% | ||
| OM | 12.29% | ||
| PM (TTM) | 13.76% | ||
| GM | 75.14% | ||
| 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 Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 1584.42% | ||
| Cap/Sales | 210.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.47 |
F-Score3
WACC10.4%
ROIC/WACC0.17
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)6.77%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%24.42%
EPS Next Y13.53%
EPS Next 2Y15.89%
EPS Next 3Y17%
EPS Next 5Y14.44%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%
Revenue Next Year36.66%
Revenue Next 2Y23.02%
Revenue Next 3Y18.89%
Revenue Next 5Y14.92%
EBIT growth 1Y-21.56%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year50.21%
EBIT Next 3Y25.04%
EBIT Next 5Y15.51%
FCF growth 1Y-1620.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.78%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%
SYNOPSYS INC / SNPS Fundamental Analysis 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.
Can you provide the profitability details for SYNOPSYS INC?
SYNOPSYS INC (SNPS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SNPS stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SNPS) is 31.93 and the Price/Book (PB) ratio is 2.75.
What is the financial health of SYNOPSYS INC (SNPS) stock?
The financial health rating of SYNOPSYS INC (SNPS) is 3 / 10.