SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
442.85 EUR
+2.2 (+0.5%)
Taking everything into account, SYP scores 4 out of 10 in our fundamental rating. SYP was compared to 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
- SYP had positive earnings in the past year.
- SYP had a positive operating cash flow in the past year.
- 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 of 2.76%. This is comparable to the rest of the industry: SYP outperforms 47.20% of its industry peers.
- With a Return On Equity value of 4.70%, SYP perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
- The Return On Invested Capital of SYP (1.45%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years 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 75.20% of its industry peers.
- In the last couple of years the Profit Margin of SYP has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 12.97%, SYP is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
- SYP's Operating Margin has declined in the last couple of years.
- SYP has a Gross Margin of 76.98%. This is comparable to the rest of the industry: SYP outperforms 59.20% of its industry peers.
- In the last couple of years the Gross Margin of SYP has remained more or less at the same level.
| 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
- The debt/assets ratio for SYP is higher compared to a year ago.
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.
- SYP's Altman-Z score of 3.52 is in line compared to the rest of the industry. SYP outperforms 57.60% of its industry peers.
- SYP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- SYP's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. SYP is outperformed by 63.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.52 |
ROIC/WACC0.13
WACC10.87%
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 58.40% 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.
- SYP has a Quick ratio (1.52) which is in line with its industry peers.
| 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.
- The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
- Looking at the last year, SYP shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
- 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.
- The Revenue is expected to grow by 15.79% on average over the next years. This is quite good.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 39.61, SYP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of SYP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, SYP is valued a bit more expensive.
- SYP is valuated quite expensively with a Price/Forward Earnings ratio of 35.08.
- SYP's Price/Forward Earnings is on the same level as the industry average.
- SYP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.61 | ||
| Fwd PE | 35.08 |
4.2 Price Multiples
- SYP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SYP is more expensive than 61.60% of the companies 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.
- A more expensive valuation may be justified as SYP's earnings are expected to grow with 16.32% in the coming years.
PEG (NY)3.07
PEG (5Y)2.14
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 (1/16/2026, 7:00:00 PM)
442.85
+2.2 (+0.5%)
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 Cap84.39B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target484.31 (9.36%)
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 | 39.61 | ||
| Fwd PE | 35.08 | ||
| P/S | 13.9 | ||
| P/FCF | N/A | ||
| P/OCF | 64.56 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.87 |
EPS(TTM)11.18
EY2.52%
EPS(NY)12.62
Fwd EY2.85%
FCF(TTM)-69.26
FCFYN/A
OCF(TTM)6.86
OCFY1.55%
SpS31.86
BVpS127.96
TBVpS-50.82
PEG (NY)3.07
PEG (5Y)2.14
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
WACC10.87%
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 39.61 and the Price/Book (PB) ratio is 3.46.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.