SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
438.6 EUR
-17.9 (-3.92%)
Overall SYP gets a fundamental rating of 4 out of 10. We evaluated SYP against 125 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. SYP is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years SYP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SYP (2.76%) is comparable to the rest of the industry.
The Return On Equity of SYP (4.70%) is comparable to the rest of the industry.
SYP's Return On Invested Capital of 1.45% is in line compared to the rest of the industry. SYP outperforms 50.40% of its industry peers.
SYP had an Average Return On Invested Capital over the past 3 years of 7.77%. This is significantly below the industry average of 12.89%.
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
Looking at the Profit Margin, with a value of 18.89%, SYP is in the better half of the industry, outperforming 75.20% of the companies in the same industry.
SYP's Profit Margin has been stable in the last couple of years.
SYP has a better Operating Margin (12.97%) than 64.80% of its industry peers.
In the last couple of years the Operating Margin of SYP has declined.
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.
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
SYP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SYP has more shares outstanding
Compared to 5 years ago, SYP has more shares outstanding
Compared to 1 year ago, SYP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that SYP is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.63, SYP perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
SYP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
SYP has a worse Debt to Equity ratio (0.48) than 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.63 |
ROIC/WACC0.13
WACC10.84%
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.
With a Current ratio value of 1.62, SYP perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
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.
SYP has a Quick ratio of 1.52. This is comparable 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.
The Revenue has grown by 15.12% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
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 2Y23.08%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.48, the valuation of SYP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SYP.
SYP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 34.97, SYP can be considered very expensive at the moment.
SYP's Price/Forward Earnings ratio is in line with the industry average.
SYP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.48 | ||
| Fwd PE | 34.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYP is valued a bit more expensive than 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 71.2 |
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)3.06
PEG (5Y)2.13
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 (1/13/2026, 10:28:00 AM)
438.6
-17.9 (-3.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap83.58B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target486.13 (10.84%)
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 | 39.48 | ||
| Fwd PE | 34.97 | ||
| P/S | 13.85 | ||
| P/FCF | N/A | ||
| P/OCF | 64.35 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 71.2 |
EPS(TTM)11.11
EY2.53%
EPS(NY)12.54
Fwd EY2.86%
FCF(TTM)-68.81
FCFYN/A
OCF(TTM)6.82
OCFY1.55%
SpS31.66
BVpS127.14
TBVpS-50.5
PEG (NY)3.06
PEG (5Y)2.13
Graham Number178.27
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 | 3.63 |
F-Score3
WACC10.84%
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 39.48 and the Price/Book (PB) ratio is 3.45.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.