SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
FRA:SYP - Deutsche Boerse Ag - US8716071076 - Common Stock - Currency: EUR
SYP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Software industry. SYP has an excellent profitability rating, but there are some minor concerns on its financial health. SYP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SYP had positive earnings in the past year.
SYP had a positive operating cash flow in the past year.
Each year in the past 5 years SYP has been profitable.
In the past 5 years SYP always reported a positive cash flow from operatings.
1.2 Ratios
SYP has a Return On Assets of 9.11%. This is amongst the best in the industry. SYP outperforms 86.00% of its industry peers.
Looking at the Return On Equity, with a value of 21.82%, SYP belongs to the top of the industry, outperforming 87.00% of the companies in the same industry.
SYP's Return On Invested Capital of 4.28% is in line compared to the rest of the industry. SYP outperforms 59.00% of its industry peers.
SYP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is in line with the industry average of 11.09%.
The 3 year average ROIC (11.39%) for SYP is well above the current ROIC(4.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROIC | 4.28% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.39%
ROIC(5y)10.05%
1.3 Margins
SYP has a Profit Margin of 34.77%. This is amongst the best in the industry. SYP outperforms 96.00% of its industry peers.
In the last couple of years the Profit Margin of SYP has grown nicely.
SYP's Operating Margin of 20.88% is amongst the best of the industry. SYP outperforms 81.00% of its industry peers.
In the last couple of years the Operating Margin of SYP has grown nicely.
SYP has a better Gross Margin (79.84%) than 69.00% of its industry peers.
SYP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 34.77% | ||
| GM | 79.84% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYP is creating some value.
Compared to 1 year ago, SYP has more shares outstanding
Compared to 5 years ago, SYP has more shares outstanding
The debt/assets ratio for SYP has been reduced compared to a year ago.
2.2 Solvency
SYP has an Altman-Z score of 5.40. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.40, SYP is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Debt to FCF ratio of SYP is 9.41, which is on the high side as it means it would take SYP, 9.41 years of fcf income to pay off all of its debts.
SYP's Debt to FCF ratio of 9.41 is in line compared to the rest of the industry. SYP outperforms 50.00% of its industry peers.
SYP has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, SYP is doing worse than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 5.4 |
ROIC/WACC0.39
WACC10.97%
2.3 Liquidity
A Current Ratio of 7.02 indicates that SYP has no problem at all paying its short term obligations.
SYP has a Current ratio of 7.02. This is amongst the best in the industry. SYP outperforms 93.00% of its industry peers.
SYP has a Quick Ratio of 6.85. This indicates that SYP is financially healthy and has no problem in meeting its short term obligations.
SYP has a better Quick ratio (6.85) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
SYP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.30%.
SYP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.99% yearly.
Looking at the last year, SYP shows a small growth in Revenue. The Revenue has grown by 7.50% in the last year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
3.2 Future
SYP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.72% yearly.
The Revenue is expected to grow by 11.34% on average over the next years. This is quite good.
EPS Next Y14.34%
EPS Next 2Y12.84%
EPS Next 3Y14.06%
EPS Next 5Y12.72%
Revenue Next Year10.07%
Revenue Next 2Y11.15%
Revenue Next 3Y11.65%
Revenue Next 5Y11.34%
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
Based on the Price/Earnings ratio of 40.41, the valuation of SYP can be described as expensive.
68.00% of the companies in the same industry are more expensive than SYP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. SYP is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 32.06, which means the current valuation is very expensive for SYP.
The rest of the industry has a similar Price/Forward Earnings ratio as SYP.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SYP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.41 | ||
| Fwd PE | 32.06 |
4.2 Price Multiples
61.00% of the companies in the same industry are cheaper than SYP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.13 | ||
| EV/EBITDA | 51.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SYP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SYP may justify a higher PE ratio.
SYP's earnings are expected to grow with 14.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.82
PEG (5Y)1.68
EPS Next 2Y12.84%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
No dividends for SYP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (7/4/2025, 7:00:00 PM)
463.9
+0.4 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap71.73B
Analysts82.96
Price Target520.75 (12.25%)
Short Float %N/A
Short RatioN/A
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)5.39%
Min EPS beat(2)4.52%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)3.59%
Min EPS beat(4)0.99%
Max EPS beat(4)6.25%
EPS beat(8)7
Avg EPS beat(8)2.64%
EPS beat(12)11
Avg EPS beat(12)2.49%
EPS beat(16)13
Avg EPS beat(16)2.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-5.45%
Revenue beat(16)0
Avg Revenue beat(16)-4.39%
PT rev (1m)-3.09%
PT rev (3m)-11.44%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)0.65%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.41 | ||
| Fwd PE | 32.06 | ||
| P/S | 13.58 | ||
| P/FCF | 79.13 | ||
| P/OCF | 68.92 | ||
| P/B | 8.52 | ||
| P/tB | 13.45 | ||
| EV/EBITDA | 51.09 |
EPS(TTM)11.48
EY2.47%
EPS(NY)14.47
Fwd EY3.12%
FCF(TTM)5.86
FCFY1.26%
OCF(TTM)6.73
OCFY1.45%
SpS34.15
BVpS54.43
TBVpS34.48
PEG (NY)2.82
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROCE | 6.09% | ||
| ROIC | 4.28% | ||
| ROICexc | 12.91% | ||
| ROICexgc | 26.5% | ||
| OM | 20.88% | ||
| PM (TTM) | 34.77% | ||
| GM | 79.84% | ||
| FCFM | 17.17% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.39%
ROIC(5y)10.05%
ROICexc(3y)15.76%
ROICexc(5y)13.64%
ROICexgc(3y)67.42%
ROICexgc(5y)61.02%
ROCE(3y)16.17%
ROCE(5y)14.27%
ROICexcg growth 3Y-16.41%
ROICexcg 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-Score3
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 58.99% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.23% | ||
| Profit Quality | 49.37% | ||
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 | ||
| Altman-Z | 5.4 |
F-Score3
WACC10.97%
ROIC/WACC0.39
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)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
EPS Next Y14.34%
EPS Next 2Y12.84%
EPS Next 3Y14.06%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year10.07%
Revenue Next 2Y11.15%
Revenue Next 3Y11.65%
Revenue Next 5Y11.34%
EBIT growth 1Y-9.11%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.94%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y-5.73%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-25.73%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%