SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock

432.65 EUR

-0.05 (-0.01%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

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. While SYP is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, SYP is valued expensive at the moment.

Quickly go to:

1. Profitability

1.1 Basic Checks

SYP had positive earnings in the past year.
In the past year SYP had a positive cash flow from operations.
SYP had positive earnings in each of the past 5 years.
In the past 5 years SYP always reported a positive cash flow from operatings.

1.2 Ratios

SYP has a Return On Assets (2.76%) which is in line with its industry peers.
SYP has a Return On Equity (4.70%) which is comparable to the rest of the industry.
The Return On Invested Capital of SYP (1.45%) is comparable to the rest of the industry.
SYP had an Average Return On Invested Capital over the past 3 years of 7.77%. This 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

With a decent Profit Margin value of 18.89%, SYP is doing good in the industry, outperforming 73.11% of the companies in the same industry.
SYP's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 12.97%, SYP is doing good in the industry, outperforming 63.87% of the companies in the same industry.
SYP's Operating Margin has declined in the last couple of years.
SYP has a Gross Margin (76.98%) which is comparable to the rest of the industry.
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYP is destroying value.
SYP has more shares outstanding than it did 1 year ago.
SYP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SYP has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.48 indicates that SYP is not in any danger for bankruptcy at the moment.
SYP has a Altman-Z score of 3.48. This is comparable to the rest of the industry: SYP outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that SYP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, SYP is doing worse than 62.18% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	N/A
Altman-Z	3.48

ROIC/WACC0.13

WACC10.9%

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 58.82% 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 56.30% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	1.52

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for SYP have decreased by -1.67% in the last year.
Measured over the past years, SYP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.54% on average per year.
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

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 2Y23.06%

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 38.98 indicates a quite expensive valuation of SYP.
Compared to the rest of the industry, the Price/Earnings ratio of SYP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.21. SYP is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 34.53, the valuation of SYP can be described as expensive.
SYP's Price/Forward Earnings is on the same level as the industry average.
SYP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	38.98
Fwd PE	34.53

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 63.87% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	67.91

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.
A more expensive valuation may be justified as SYP's earnings are expected to grow with 16.32% in the coming years.