SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
416.05 EUR
-7.2 (-1.7%)
Overall SYP gets a fundamental rating of 4 out of 10. We evaluated SYP against 114 industry peers in the Software industry. SYP has a medium profitability rating, but doesn't score so well on its financial health evaluation. SYP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years SYP has always been profitable.
- In the past 5 years SYP always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.76%, SYP perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
- With a Return On Equity value of 4.70%, SYP perfoms like the industry average, outperforming 48.25% of the companies in the same industry.
- The Return On Invested Capital of SYP (1.45%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SYP is significantly below the industry average of 13.49%.
- The 3 year average ROIC (7.77%) for SYP is well above the current ROIC(1.45%). The reason for the recent decline needs to be investigated.
| 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 has a better Profit Margin (18.89%) than 73.68% of its industry peers.
- SYP's Profit Margin has been stable in the last couple of years.
- SYP's Operating Margin of 12.97% is fine compared to the rest of the industry. SYP outperforms 63.16% of its industry peers.
- In the last couple of years the Operating Margin of SYP has declined.
- SYP has a better Gross Margin (76.98%) than 60.53% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SYP is destroying value.
- Compared to 1 year ago, SYP has more shares outstanding
- Compared to 5 years ago, SYP has more shares outstanding
- SYP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that SYP is not in any danger for bankruptcy at the moment.
- SYP has a Altman-Z score (3.44) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.48 indicates that SYP is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.48, SYP is not doing good in the industry: 61.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.44 |
ROIC/WACC0.13
WACC10.88%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that SYP should not have too much problems paying its short term obligations.
- SYP's Current ratio of 1.62 is in line compared to the rest of the industry. SYP outperforms 57.89% of its industry peers.
- SYP has a Quick Ratio of 1.52. This is a normal value and indicates that SYP is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.52, SYP perfoms like the industry average, outperforming 55.26% 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.
- The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
- The Revenue has grown by 15.12% in the past year. This is quite good.
- Measured over the past years, SYP shows a quite strong growth in Revenue. The Revenue has been growing by 13.87% on average per year.
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
- The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
- 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 Y12.73%
EPS Next 2Y15.35%
EPS Next 3Y16.34%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y23.03%
Revenue Next 3Y19.06%
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.
- 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
- A Price/Earnings ratio of 37.93 indicates a quite expensive valuation of SYP.
- SYP's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of SYP to the average of the S&P500 Index (28.87), we can say SYP is valued slightly more expensively.
- SYP is valuated quite expensively with a Price/Forward Earnings ratio of 33.63.
- SYP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. SYP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.93 | ||
| Fwd PE | 33.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYP is valued a bit more expensive than 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 67.23 |
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 decent profitability rating of SYP may justify a higher PE ratio.
- SYP's earnings are expected to grow with 16.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.98
PEG (5Y)2.05
EPS Next 2Y15.35%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
- No dividends for SYP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 6 / 10.
Can you provide the PE and PB ratios for SYP stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SYP.DE) is 37.93 and the Price/Book (PB) ratio is 3.31.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.