SYNOPSYS INC (SNPS) Fundamental Analysis & Valuation

NASDAQ:SNPS • US8716071076

Current stock price

425.88 USD
+13.25 (+3.21%)
At close:
425.471 USD
-0.41 (-0.1%)
After Hours:

This SNPS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

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.
  • Each year in the past 5 years SNPS has been profitable.
  • SNPS had a positive operating cash flow in each of the past 5 years.
SNPS Yearly Net Income VS EBIT VS OCF VS FCFSNPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5B -10B -15B

1.2 Ratios

  • SNPS has a Return On Assets of 2.33%. This is in the better half of the industry: SNPS outperforms 65.34% of its industry peers.
  • SNPS's Return On Equity of 3.61% is fine compared to the rest of the industry. SNPS outperforms 65.70% of its industry peers.
  • The Return On Invested Capital of SNPS (1.80%) is better than 65.70% of its industry peers.
  • SNPS had an Average Return On Invested Capital over the past 3 years of 8.72%. This is below the industry average of 10.87%.
  • 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 RankSector 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%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.76%, SNPS is in the better half of the industry, outperforming 79.78% of the companies in the same industry.
  • SNPS's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of SNPS (12.29%) is better than 79.42% of its industry peers.
  • SNPS's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 75.14%, SNPS is doing good in the industry, outperforming 67.51% of the companies in the same industry.
  • SNPS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. SNPS Health Analysis

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.
  • SNPS has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, SNPS has more shares outstanding
  • SNPS has a worse debt/assets ratio than last year.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • SNPS has an Altman-Z score of 3.42. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
  • SNPS has a better Altman-Z score (3.42) than 69.31% of its industry peers.
  • A Debt/Equity ratio of 0.33 indicates that SNPS is not too dependend on debt financing.
  • The Debt to Equity ratio of SNPS (0.33) is worse than 61.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Altman-Z 3.42
ROIC/WACC0.17
WACC10.71%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B

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.
  • With a Current ratio value of 1.36, SNPS perfoms like the industry average, outperforming 42.60% of the companies in the same industry.
  • A Quick Ratio of 1.26 indicates that SNPS should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.26, SNPS is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.26
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SNPS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.77% over the past year.
  • SNPS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
  • Looking at the last year, SNPS shows a very strong growth in Revenue. The Revenue has grown by 31.88%.
  • 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.
  • Based on estimates for the next years, SNPS will show a quite strong growth in Revenue. The Revenue will grow by 14.92% on average per year.
EPS Next Y13.4%
EPS Next 2Y15.87%
EPS Next 3Y17.01%
EPS Next 5Y14.44%
Revenue Next Year36.69%
Revenue Next 2Y23.02%
Revenue Next 3Y18.92%
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.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

2

4. SNPS Valuation Analysis

4.1 Price/Earnings Ratio

  • SNPS is valuated quite expensively with a Price/Earnings ratio of 31.02.
  • SNPS's Price/Earnings is on the same level as the industry average.
  • SNPS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 24.42, SNPS is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, SNPS is valued at the same level.
Industry RankSector Rank
PE 31.02
Fwd PE 24.42
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SNPS is valued a bit cheaper than the industry average as 60.65% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 42.4
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 150

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.
  • SNPS's earnings are expected to grow with 17.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.31
PEG (5Y)1.67
EPS Next 2Y15.87%
EPS Next 3Y17.01%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SNPS Dividend Analysis

5.1 Amount

  • No dividends for SNPS!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SNPS Fundamentals: All Metrics, Ratios and Statistics

SYNOPSYS INC

NASDAQ:SNPS (3/16/2026, 8:00:03 PM)

After market: 425.471 -0.41 (-0.1%)

425.88

+13.25 (+3.21%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners90.86%
Inst Owner Change0.46%
Ins Owners0.41%
Ins Owner Change1.56%
Market Cap81.58B
Revenue(TTM)8.01B
Net Income(TTM)1.10B
Analysts80
Price Target565.22 (32.72%)
Short Float %2.42%
Short Ratio1.98
Dividend
Industry RankSector 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)-0.42%
PT rev (3m)1.03%
EPS NQ rev (1m)2.06%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0.46%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 31.02
Fwd PE 24.42
P/S 10.19
P/FCF N/A
P/OCF 33.4
P/B 2.67
P/tB N/A
EV/EBITDA 42.4
EPS(TTM)13.73
EY3.22%
EPS(NY)17.44
Fwd EY4.1%
FCF(TTM)-75.18
FCFYN/A
OCF(TTM)12.75
OCFY2.99%
SpS41.8
BVpS159.47
TBVpS-45.01
PEG (NY)2.31
PEG (5Y)1.67
Graham Number221.96
Profitability
Industry RankSector 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 RankSector 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 3.42
F-Score3
WACC10.71%
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 Y13.4%
EPS Next 2Y15.87%
EPS Next 3Y17.01%
EPS Next 5Y14.44%
Revenue 1Y (TTM)31.88%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%65.52%
Revenue Next Year36.69%
Revenue Next 2Y23.02%
Revenue Next 3Y18.92%
Revenue Next 5Y14.92%
EBIT growth 1Y-21.56%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year39.09%
EBIT Next 3Y29.79%
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.


How profitable is SYNOPSYS INC (SNPS) stock?

SYNOPSYS INC (SNPS) has a profitability rating of 6 / 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 13.4% in the next year.