SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
443.925 EUR
+10.23 (+2.36%)
Overall SYP gets a fundamental rating of 4 out of 10. We evaluated SYP against 125 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.
- SYP had a positive operating cash flow in the past year.
- 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
- SYP's Return On Assets of 2.76% is in line compared to the rest of the industry. SYP outperforms 47.20% of its industry peers.
- SYP has a Return On Equity (4.70%) which is in line with its industry peers.
- SYP has a Return On Invested Capital (1.45%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SYP is significantly below the industry average of 12.89%.
- 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 has a Profit Margin of 18.89%. This is in the better half of the industry: SYP outperforms 75.20% of its industry peers.
- SYP's Profit Margin has been stable in the last couple of years.
- The Operating Margin of SYP (12.97%) is better than 64.80% of its industry peers.
- SYP's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 76.98%, SYP is in line with its industry, outperforming 59.20% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYP 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
- SYP has a worse debt/assets ratio than last year.
2.2 Solvency
- SYP has an Altman-Z score of 3.47. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
- SYP has a Altman-Z score of 3.47. This is comparable to the rest of the industry: SYP outperforms 56.00% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that SYP is not too dependend on debt financing.
- 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 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.47 |
ROIC/WACC0.13
WACC10.83%
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.
- SYP's Current ratio of 1.62 is in line compared to the rest of the industry. SYP outperforms 56.80% of its industry peers.
- A Quick Ratio of 1.52 indicates that SYP should not have too much problems paying its short term obligations.
- SYP's Quick ratio of 1.52 is in line compared to the rest of the industry. SYP outperforms 56.00% of 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.
- SYP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.12%.
- The Revenue has been growing by 13.87% on average over the past years. This is quite good.
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 2Y23.08%
Revenue Next 3Y19.01%
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
- SYP is valuated quite expensively with a Price/Earnings ratio of 39.81.
- 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 (27.33), we can say SYP is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 35.27, SYP can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as SYP.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, SYP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.81 | ||
| Fwd PE | 35.27 |
4.2 Price Multiples
- 60.80% of the companies in the same industry are cheaper than SYP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 67.76 |
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.
- SYP's earnings are expected to grow with 16.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.09
PEG (5Y)2.15
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
- No dividends for SYP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:SYP (1/15/2026, 4:13:25 PM)
443.925
+10.23 (+2.36%)
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 Cap84.60B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target486.13 (9.51%)
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)1.55%
PT rev (3m)-0.14%
EPS NQ rev (1m)7.45%
EPS NQ rev (3m)12.53%
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.81 | ||
| Fwd PE | 35.27 | ||
| P/S | 13.97 | ||
| P/FCF | N/A | ||
| P/OCF | 64.91 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 67.76 |
EPS(TTM)11.15
EY2.51%
EPS(NY)12.59
Fwd EY2.84%
FCF(TTM)-69.05
FCFYN/A
OCF(TTM)6.84
OCFY1.54%
SpS31.77
BVpS127.58
TBVpS-50.67
PEG (NY)3.09
PEG (5Y)2.15
Graham Number178.91
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 | 3.47 |
F-Score3
WACC10.83%
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 2Y23.08%
Revenue Next 3Y19.01%
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 39.81 and the Price/Book (PB) ratio is 3.48.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.