SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - FRA:SYP - US8716071076 - Common Stock
406.45 EUR
+3.4 (+0.84%)
We assign a fundamental rating of 5 out of 10 to SYP. SYP was compared to 111 industry peers in the Software industry. SYP has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past 5 years SYP has always been profitable.
Each year in the past 5 years SYP had a positive operating cash flow.
1.2 Ratios
SYP has a Return On Assets of 4.14%. This is comparable to the rest of the industry: SYP outperforms 54.05% of its industry peers.
SYP has a Return On Equity (7.23%) which is comparable to the rest of the industry.
SYP has a Return On Invested Capital of 1.74%. This is comparable to the rest of the industry: SYP outperforms 48.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYP is in line with the industry average of 12.85%.
The 3 year average ROIC (11.39%) for SYP is well above the current ROIC(1.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROIC | 1.74% |
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
The Profit Margin of SYP (31.04%) is better than 90.99% of its industry peers.
In the last couple of years the Profit Margin of SYP has grown nicely.
SYP's Operating Margin of 17.16% is fine compared to the rest of the industry. SYP outperforms 69.37% of its industry peers.
In the last couple of years the Operating Margin of SYP has grown nicely.
SYP has a better Gross Margin (79.12%) than 65.77% 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 | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% |
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.
The number of shares outstanding for SYP has been increased compared to 1 year ago.
The number of shares outstanding for SYP has been increased compared to 5 years ago.
The debt/assets ratio for SYP has been reduced compared to a year ago.
2.2 Solvency
SYP has an Altman-Z score of 3.08. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
SYP has a Altman-Z score (3.08) which is comparable to the rest of the industry.
SYP has a Debt/Equity ratio of 0.52. This is a neutral value indicating SYP is somewhat dependend on debt financing.
SYP's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. SYP is outperformed by 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.08 |
ROIC/WACC0.16
WACC11%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SYP should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.62, SYP is doing good in the industry, outperforming 61.26% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that SYP should not have too much problems paying its short term obligations.
SYP has a Quick ratio of 1.51. This is in the better half of the industry: SYP outperforms 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
SYP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
SYP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.99% yearly.
The Revenue has been growing slightly by 8.00% in the past year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
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 12.59% yearly.
SYP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.71% yearly.
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.98, the valuation of SYP can be described as expensive.
Based on the Price/Earnings ratio, SYP is valued a bit cheaper than 65.77% of the companies in the same industry.
SYP is valuated rather expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.95, the valuation of SYP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SYP.
The average S&P500 Price/Forward Earnings ratio is at 22.99. SYP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYP is valued a bit more expensive than 63.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 68.93 |
4.3 Compensation for Growth
The decent profitability rating of SYP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y3.42%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (10/27/2025, 2:10:35 PM)
406.45
+3.4 (+0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner ChangeN/A
Market Cap75.50B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts79.29
Price Target486.84 (19.78%)
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)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-10.9%
Max EPS beat(2)6.25%
EPS beat(4)3
Avg EPS beat(4)0.22%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)0.89%
EPS beat(12)10
Avg EPS beat(12)1.29%
EPS beat(16)13
Avg EPS beat(16)1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.64%
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)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-5.73%
Revenue beat(16)0
Avg Revenue beat(16)-4.55%
PT rev (1m)0.58%
PT rev (3m)-7.28%
EPS NQ rev (1m)-25.72%
EPS NQ rev (3m)-39.42%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-15.1%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)12.62%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 32.95 | ||
| P/S | 13.62 | ||
| P/FCF | N/A | ||
| P/OCF | 60.81 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.93 |
EPS(TTM)11.62
EY2.86%
EPS(NY)12.33
Fwd EY3.03%
FCF(TTM)-71.3
FCFYN/A
OCF(TTM)6.68
OCFY1.64%
SpS29.84
BVpS128.03
TBVpS-57.54
PEG (NY)N/A
PEG (5Y)1.46
Graham Number182.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROCE | 2.47% | ||
| ROIC | 1.74% | ||
| ROICexc | 1.84% | ||
| ROICexgc | 35.88% | ||
| OM | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-16.41%
ROICexgc 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-Score2
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.01 | ||
| Cap/Depr | 5156.15% | ||
| Cap/Sales | 261.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.08 |
F-Score2
WACC11%
ROIC/WACC0.16
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)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year17.77%
EBIT Next 3Y25.97%
EBIT Next 5Y24.99%
FCF growth 1Y-1098.34%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-18.58%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%
SYNOPSYS INC / SYP.DE FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SYP.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SYP.DE.
What is the valuation status of SYNOPSYS INC (SYP.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to SYNOPSYS INC (SYP.DE). This can be considered as Overvalued.
Can you provide the profitability details for SYNOPSYS INC?
SYNOPSYS INC (SYP.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SYNOPSYS INC (SYP.DE) stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SYP.DE) is 34.98 and the Price/Book (PB) ratio is 3.17.