SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - Nasdaq - US8716071076 - Common Stock - Currency: USD
Overall SNPS gets a fundamental rating of 6 out of 10. We evaluated SNPS against 284 industry peers in the Software industry. SNPS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SNPS is not valued too expensively and it also shows a decent growth rate. These ratings could make SNPS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
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 (17.31%) is better than 93.48% of its industry peers.
The Return On Equity of SNPS (25.17%) is better than 89.49% of its industry peers.
SNPS has a Return On Invested Capital of 10.28%. This is amongst the best in the industry. SNPS outperforms 86.59% of its industry peers.
SNPS had an Average Return On Invested Capital over the past 3 years of 12.83%. This is in line with the industry average of 11.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 25.17% | ||
| ROIC | 10.28% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
1.3 Margins
SNPS has a Profit Margin of 36.94%. This is amongst the best in the industry. SNPS outperforms 96.01% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
The Operating Margin of SNPS (22.13%) is better than 89.49% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
The Gross Margin of SNPS (79.68%) is better than 77.90% 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 | 22.13% | ||
| PM (TTM) | 36.94% | ||
| GM | 79.68% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
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 below the Cost of Capital (WACC), so SNPS is destroying value.
SNPS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SNPS has been increased compared to 5 years ago.
The debt/assets ratio for SNPS has been reduced compared to a year ago.
2.2 Solvency
SNPS has an Altman-Z score of 13.34. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SNPS (13.34) is better than 88.04% of its industry peers.
The Debt to FCF ratio of SNPS is 0.01, which is an excellent value as it means it would take SNPS, only 0.01 years of fcf income to pay off all of its debts.
SNPS has a better Debt to FCF ratio (0.01) than 80.43% of its industry peers.
SNPS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
SNPS has a better Debt to Equity ratio (0.00) than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 13.34 |
ROIC/WACC0.73
WACC14.07%
2.3 Liquidity
SNPS has a Current Ratio of 2.44. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
SNPS's Current ratio of 2.44 is fine compared to the rest of the industry. SNPS outperforms 67.03% of its industry peers.
A Quick Ratio of 2.30 indicates that SNPS has no problem at all paying its short term obligations.
The Quick ratio of SNPS (2.30) is better than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.45% over the past year.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.87% in the past year.
SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.3%
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 11.81% 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 12.78% on average per year.
EPS Next Y13.6%
EPS Next 2Y14.45%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue Next Year10.61%
Revenue Next 2Y11.78%
Revenue Next 3Y12.69%
Revenue Next 5Y12.78%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
SNPS is valuated quite expensively with a Price/Earnings ratio of 35.46.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than 65.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of SNPS to the average of the S&P500 Index (29.63), we can say SNPS is valued inline with the index average.
With a Price/Forward Earnings ratio of 31.22, SNPS can be considered very expensive at the moment.
SNPS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SNPS to the average of the S&P500 Index (22.68), we can say SNPS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.46 | ||
| Fwd PE | 31.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNPS is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNPS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.13 | ||
| EV/EBITDA | 43.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
SNPS's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)1.48
EPS Next 2Y14.45%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
474.84
-19.13 (-3.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.53%
Inst Owner Change0.01%
Ins Owners0.4%
Ins Owner Change3.56%
Market Cap73.40B
Analysts83.57
Price Target645.53 (35.95%)
Short Float %2.28%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1.79%
Min EPS beat(2)0.99%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.23%
Min EPS beat(4)-0.41%
Max EPS beat(4)2.6%
EPS beat(8)7
Avg EPS beat(8)1.76%
EPS beat(12)10
Avg EPS beat(12)1.81%
EPS beat(16)13
Avg EPS beat(16)2%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.5%
Revenue beat(16)1
Avg Revenue beat(16)-1.26%
PT rev (1m)-1.32%
PT rev (3m)-1.42%
EPS NQ rev (1m)-19.64%
EPS NQ rev (3m)-21.32%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-10.91%
Revenue NQ rev (3m)-12.37%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.46 | ||
| Fwd PE | 31.22 | ||
| P/S | 11.98 | ||
| P/FCF | 65.13 | ||
| P/OCF | 52.17 | ||
| P/B | 8.16 | ||
| P/tB | 13.73 | ||
| EV/EBITDA | 43.72 |
EPS(TTM)13.39
EY2.82%
EPS(NY)15.21
Fwd EY3.2%
FCF(TTM)7.29
FCFY1.54%
OCF(TTM)9.1
OCFY1.92%
SpS39.64
BVpS58.16
TBVpS34.59
PEG (NY)2.61
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.31% | ||
| ROE | 25.17% | ||
| ROCE | 13.01% | ||
| ROIC | 10.28% | ||
| ROICexc | 16.81% | ||
| ROICexgc | 39.25% | ||
| OM | 22.13% | ||
| PM (TTM) | 36.94% | ||
| GM | 79.68% | ||
| FCFM | 18.39% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
ROICexc(3y)17.76%
ROICexc(5y)15.35%
ROICexgc(3y)76.09%
ROICexgc(5y)68.74%
ROCE(3y)16.24%
ROCE(5y)14.32%
ROICexcg growth 3Y-16.41%
ROICexcg growth 5Y-15.6%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 94.93% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 1665.49 | ||
| Cash Conversion | 85.23% | ||
| Profit Quality | 49.79% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 13.34 |
F-Score6
WACC14.07%
ROIC/WACC0.73
Cap/Depr(3y)179.62%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.28%
Cap/Sales(5y)8.78%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
EPS Next Y13.6%
EPS Next 2Y14.45%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.3%
Revenue Next Year10.61%
Revenue Next 2Y11.78%
Revenue Next 3Y12.69%
Revenue Next 5Y12.78%
EBIT growth 1Y0.7%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year18.27%
EBIT Next 3Y14.14%
EBIT Next 5YN/A
FCF growth 1Y-7.15%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-17.39%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%