SYNOPSYS INC (SNPS)
US8716071076 - Common Stock
SNPS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. SNPS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year SNPS had a positive cash flow from operations.
Of the past 5 years SNPS 4 years were profitable.
SNPS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNPS has a Return On Assets of 12.86%. This is amongst the best in the industry. SNPS outperforms 90.68% of its industry peers.
SNPS's Return On Equity of 19.44% is amongst the best of the industry. SNPS outperforms 87.81% of its industry peers.
With an excellent Return On Invested Capital value of 14.51%, SNPS belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
SNPS had an Average Return On Invested Capital over the past 3 years of 14.39%. This is above the industry average of 12.23%.
The 3 year average ROIC (14.39%) for SNPS is below the current ROIC(14.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 19.44% | ||
| ROIC | 14.51% |
ROA(3y)10.34%
ROA(5y)9.52%
ROE(3y)17.39%
ROE(5y)15.75%
ROIC(3y)14.39%
ROIC(5y)12.68%
1.3 Margins
The Profit Margin of SNPS (24.60%) is better than 91.76% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
SNPS's Operating Margin of 24.20% is amongst the best of the industry. SNPS outperforms 91.04% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
The Gross Margin of SNPS (80.25%) is better than 79.57% of its industry peers.
SNPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.2% | ||
| PM (TTM) | 24.6% | ||
| GM | 80.25% |
OM growth 3Y10.35%
OM growth 5Y14.03%
PM growth 3Y5.31%
PM growth 5Y8.72%
GM growth 3Y0.27%
GM growth 5Y0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SNPS is 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 13.71 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS's Altman-Z score of 13.71 is amongst the best of the industry. SNPS outperforms 88.53% of its industry peers.
SNPS has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.03, SNPS belongs to the top of the industry, outperforming 81.00% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that SNPS is not too dependend on debt financing.
SNPS has a better Debt to Equity ratio (0.00) than 65.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 13.71 |
ROIC/WACC1.23
WACC11.78%
2.3 Liquidity
A Current Ratio of 2.02 indicates that SNPS has no problem at all paying its short term obligations.
SNPS has a better Current ratio (2.02) than 60.22% of its industry peers.
SNPS has a Quick Ratio of 1.87. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.87, SNPS is in line with its industry, outperforming 56.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
SNPS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.45%, which is quite good.
SNPS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.99% yearly.
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.31%
3.2 Future
The Earnings Per Share is expected to grow by 11.81% on average over the next years. This is quite good.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.78% yearly.
EPS Next Y13.59%
EPS Next 2Y14.38%
EPS Next 3Y15.14%
EPS Next 5Y11.81%
Revenue Next Year10.78%
Revenue Next 2Y11.87%
Revenue Next 3Y12.76%
Revenue Next 5Y12.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.76 indicates a quite expensive valuation of SNPS.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than 68.46% of the companies in the same industry.
SNPS is valuated rather expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.36, SNPS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 65.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. SNPS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 32.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 70.25% of the companies listed in the same industry.
SNPS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 127.47 | ||
| EV/EBITDA | 42.83 |
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 15.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.7
PEG (5Y)1.53
EPS Next 2Y14.38%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SYNOPSYS INC
NASDAQ:SNPS (12/20/2024, 8:00:02 PM)
After market: 492.18 0 (0%)492.18
-1.17 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.53%
Inst Owner Change-0.43%
Ins Owners0.4%
Ins Owner Change4.46%
Market Cap75.85B
Analysts83.7
Price Target652.26 (32.52%)
Short Float %1.85%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)1.09%
Min EPS beat(2)-0.41%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.56%
Min EPS beat(4)-0.41%
Max EPS beat(4)2.6%
EPS beat(8)7
Avg EPS beat(8)1.83%
EPS beat(12)10
Avg EPS beat(12)1.73%
EPS beat(16)12
Avg EPS beat(16)1.83%
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-3.79%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.54%
Revenue beat(16)1
Avg Revenue beat(16)-1.28%
PT rev (1m)-0.39%
PT rev (3m)-2.51%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 32.36 | ||
| P/S | 12.45 | ||
| P/FCF | 127.47 | ||
| P/OCF | 64.81 | ||
| P/B | 9.84 | ||
| P/tB | 18.97 | ||
| EV/EBITDA | 42.83 |
EPS(TTM)13.39
EY2.72%
EPS(NY)15.21
Fwd EY3.09%
FCF(TTM)3.86
FCFY0.78%
OCF(TTM)7.59
OCFY1.54%
SpS39.52
BVpS50.03
TBVpS25.95
PEG (NY)2.7
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 19.44% | ||
| ROCE | 16.17% | ||
| ROIC | 14.51% | ||
| ROICexc | 18.58% | ||
| ROICexgc | 38.8% | ||
| OM | 24.2% | ||
| PM (TTM) | 24.6% | ||
| GM | 80.25% | ||
| FCFM | 9.77% |
ROA(3y)10.34%
ROA(5y)9.52%
ROE(3y)17.39%
ROE(5y)15.75%
ROIC(3y)14.39%
ROIC(5y)12.68%
ROICexc(3y)18.74%
ROICexc(5y)16.19%
ROICexgc(3y)97.45%
ROICexgc(5y)90.24%
ROCE(3y)16.04%
ROCE(5y)14.13%
ROICexcg growth 3Y18.87%
ROICexcg growth 5YN/A
ROICexc growth 3Y19.87%
ROICexc growth 5Y15.79%
OM growth 3Y10.35%
OM growth 5Y14.03%
PM growth 3Y5.31%
PM growth 5Y8.72%
GM growth 3Y0.27%
GM growth 5Y0.69%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 232.64% | ||
| Cap/Sales | 9.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.99% | ||
| Profit Quality | 39.71% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 13.71 |
F-Score7
WACC11.78%
ROIC/WACC1.23
Cap/Depr(3y)212.09%
Cap/Depr(5y)185.22%
Cap/Sales(3y)9.58%
Cap/Sales(5y)9.12%
Profit Quality(3y)121.2%
Profit Quality(5y)112.82%
High Growth Momentum
Growth
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
EPS Next Y13.59%
EPS Next 2Y14.38%
EPS Next 3Y15.14%
EPS Next 5Y11.81%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.31%
Revenue Next Year10.78%
Revenue Next 2Y11.87%
Revenue Next 3Y12.76%
Revenue Next 5Y12.78%
EBIT growth 1Y29.93%
EBIT growth 3Y28.67%
EBIT growth 5Y29.26%
EBIT Next Year31.49%
EBIT Next 3Y19.76%
EBIT Next 5Y19.08%
FCF growth 1Y-42.53%
FCF growth 3Y24.33%
FCF growth 5YN/A
OCF growth 1Y-31.8%
OCF growth 3Y19.77%
OCF growth 5Y32.04%