463.73 USD
+5.6 (+1.22%)
465.35 USD
+1.62 (+0.35%)
We assign a fundamental rating of 4 out of 10 to SNPS. SNPS was compared to 281 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are some minor concerns on its financial health. SNPS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
In the past year SNPS had a positive cash flow from operations.
SNPS had positive earnings in 4 of the past 5 years.
SNPS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SNPS (4.14%) is better than 70.82% of its industry peers.
SNPS's Return On Equity of 7.23% is fine compared to the rest of the industry. SNPS outperforms 70.82% of its industry peers.
The Return On Invested Capital of SNPS (1.95%) is better than 66.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNPS is above the industry average of 10.73%.
The last Return On Invested Capital (1.95%) for SNPS is well below the 3 year average (12.78%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
| 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 91.10% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
SNPS has a Operating Margin of 17.16%. This is amongst the best in the industry. SNPS outperforms 83.27% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
The Gross Margin of SNPS (79.12%) is better than 78.65% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNPS is still creating some value.
SNPS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.12 indicates that SNPS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SNPS (3.12) is better than 60.14% of its industry peers.
SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SNPS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, SNPS is doing worse than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.12 |
ROIC/WACC0.18
WACC10.89%
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 (1.62) which is comparable to the rest of the industry.
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 (1.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for SNPS have decreased by -2.99% in the last year.
The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
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
Based on estimates for the next years, SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
The Revenue is expected to grow by 15.94% on average over the next years. This is quite good.
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
The EPS 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 35.70 indicates a quite expensive valuation of SNPS.
The rest of the industry has a similar Price/Earnings ratio as SNPS.
Compared to an average S&P500 Price/Earnings ratio of 26.38, SNPS is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.23, SNPS can be considered very expensive at the moment.
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 (23.83), we can say SNPS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 32.23 |
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 | 69.94 |
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 excellent profitability rating of SNPS may justify a higher PE ratio.
SNPS's earnings are expected to grow with 18.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.32
PEG (5Y)1.93
EPS Next 2Y16.88%
EPS Next 3Y18.58%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
463.73
+5.6 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change19.55%
Ins Owners0.42%
Ins Owner Change9.02%
Market Cap88.37B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts79.35
Price Target559.48 (20.65%)
Short Float %2.48%
Short Ratio2.06
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)-3.65%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-25.69%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-14.41%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 32.23 | ||
| P/S | 13.73 | ||
| P/FCF | N/A | ||
| P/OCF | 61.3 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 69.94 |
EPS(TTM)12.99
EY2.8%
EPS(NY)14.39
Fwd EY3.1%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.63%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)3.32
PEG (5Y)1.93
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 | 3.12 |
F-Score2
WACC10.89%
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 8 / 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.