SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
437.45 EUR
-5.4 (-1.22%)
Overall SYP gets a fundamental rating of 4 out of 10. We evaluated SYP against 119 industry peers in the Software industry. There are concerns on the financial health of SYP while its profitability can be described as average. While showing a medium growth rate, SYP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year SYP was profitable.
- In the past year SYP had a positive cash flow from operations.
- SYP had positive earnings in each of the past 5 years.
- SYP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SYP has a Return On Assets (2.76%) which is in line with its industry peers.
- SYP has a Return On Equity (4.70%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 1.45%, SYP perfoms like the industry average, outperforming 49.58% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SYP is significantly below the industry average of 13.47%.
- The last Return On Invested Capital (1.45%) for SYP is well below the 3 year average (7.77%), which needs to be investigated, but indicates that SYP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROIC | 1.45% |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)7.77%
ROIC(5y)8.83%
1.3 Margins
- SYP's Profit Margin of 18.89% is fine compared to the rest of the industry. SYP outperforms 73.11% of its industry peers.
- In the last couple of years the Profit Margin of SYP has remained more or less at the same level.
- SYP's Operating Margin of 12.97% is fine compared to the rest of the industry. SYP outperforms 63.87% of its industry peers.
- In the last couple of years the Operating Margin of SYP has declined.
- SYP's Gross Margin of 76.98% is in line compared to the rest of the industry. SYP outperforms 59.66% of its industry peers.
- SYP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 18.89% | ||
| GM | 76.98% |
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. Health
2.1 Basic Checks
- SYP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SYP has been increased compared to 1 year ago.
- Compared to 5 years ago, SYP has more shares outstanding
- Compared to 1 year ago, SYP has a worse debt to assets ratio.
2.2 Solvency
- SYP has an Altman-Z score of 3.52. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SYP (3.52) is comparable to the rest of the industry.
- SYP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.48, SYP is doing worse than 62.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC0.13
WACC10.93%
2.3 Liquidity
- SYP has a Current Ratio of 1.62. This is a normal value and indicates that SYP is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.62, SYP is in line with its industry, outperforming 58.82% of the companies in the same industry.
- A Quick Ratio of 1.52 indicates that SYP should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.52, SYP is in line with its industry, outperforming 56.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- The earnings per share for SYP have decreased by -1.67% in the last year.
- SYP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
- The Revenue has grown by 15.12% in the past year. This is quite good.
- SYP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.87% yearly.
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
3.2 Future
- Based on estimates for the next years, SYP will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
- SYP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.79% yearly.
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y14.48%
Revenue Next Year36.7%
Revenue Next 2Y23.06%
Revenue Next 3Y19.12%
Revenue Next 5Y15.79%
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.
- 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
- The Price/Earnings ratio is 39.13, which means the current valuation is very expensive for SYP.
- The rest of the industry has a similar Price/Earnings ratio as SYP.
- SYP is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 34.65 indicates a quite expensive valuation of SYP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SYP is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of SYP to the average of the S&P500 Index (24.29), we can say SYP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 34.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYP indicates a slightly more expensive valuation: SYP is more expensive than 63.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 68.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SYP's earnings are expected to grow with 16.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.03
PEG (5Y)2.11
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
- SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:SYP (1/19/2026, 11:35:05 AM)
437.45
-5.4 (-1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners93.54%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap83.36B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target484.31 (10.71%)
Short Float %N/A
Short RatioN/A
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)-4.27%
Min EPS beat(2)-10.9%
Max EPS beat(2)2.36%
EPS beat(4)3
Avg EPS beat(4)0.56%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)5
Avg EPS beat(8)0.25%
EPS beat(12)9
Avg EPS beat(12)0.93%
EPS beat(16)12
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.62%
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)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)0
Avg Revenue beat(16)-4.52%
PT rev (1m)1.17%
PT rev (3m)-0.52%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)11.69%
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 34.65 | ||
| P/S | 13.73 | ||
| P/FCF | N/A | ||
| P/OCF | 63.77 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.87 |
EPS(TTM)11.18
EY2.56%
EPS(NY)12.62
Fwd EY2.89%
FCF(TTM)-69.26
FCFYN/A
OCF(TTM)6.86
OCFY1.57%
SpS31.86
BVpS127.96
TBVpS-50.82
PEG (NY)3.03
PEG (5Y)2.11
Graham Number179.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROCE | 2.06% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.55% | ||
| ROICexgc | 32.83% | ||
| OM | 12.97% | ||
| PM (TTM) | 18.89% | ||
| GM | 76.98% | ||
| FCFM | N/A |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)7.77%
ROIC(5y)8.83%
ROICexc(3y)10.92%
ROICexc(5y)12.04%
ROICexgc(3y)46.31%
ROICexgc(5y)58.99%
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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.55 | ||
| Cap/Depr | 2551.48% | ||
| Cap/Sales | 238.88% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 96.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.52 |
F-Score3
WACC10.93%
ROIC/WACC0.13
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)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y14.48%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
Revenue Next Year36.7%
Revenue Next 2Y23.06%
Revenue Next 3Y19.12%
Revenue Next 5Y15.79%
EBIT growth 1Y-32.51%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year84.56%
EBIT Next 3Y32.44%
EBIT Next 5Y15.27%
FCF growth 1Y-1460.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.93%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%
SYNOPSYS INC / SYP.DE FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SYP.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SYP.DE.
What is the valuation status for SYP stock?
ChartMill assigns a valuation rating of 1 / 10 to SYNOPSYS INC (SYP.DE). This can be considered as Overvalued.
How profitable is SYNOPSYS INC (SYP.DE) stock?
SYNOPSYS INC (SYP.DE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for SYP stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SYP.DE) is 39.13 and the Price/Book (PB) ratio is 3.42.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.