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SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis

FRA:SYP - Deutsche Boerse Ag - US8716071076 - Common Stock - Currency: EUR

500.9  -3.3 (-0.65%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to SYP. SYP was compared to 98 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SYP a very profitable company, without any liquidiy or solvency issues. SYP is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, SYP could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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8

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.
SYP had a positive operating cash flow in each of the past 5 years.
SYP.DE Yearly Net Income VS EBIT VS OCF VS FCFSYP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

SYP has a better Return On Assets (17.31%) than 94.25% of its industry peers.
Looking at the Return On Equity, with a value of 25.17%, SYP belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.16%, SYP is doing good in the industry, outperforming 65.52% of the companies in the same industry.
SYP had an Average Return On Invested Capital over the past 3 years of 11.44%. This is in line with the industry average of 11.66%.
Industry RankSector Rank
ROA 17.31%
ROE 25.17%
ROIC 9.16%
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.44%
ROIC(5y)10.08%
SYP.DE Yearly ROA, ROE, ROICSYP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

SYP has a Profit Margin of 36.94%. This is amongst the best in the industry. SYP outperforms 97.70% of its industry peers.
In the last couple of years the Profit Margin of SYP has grown nicely.
The Operating Margin of SYP (22.13%) is better than 80.46% of its industry peers.
In the last couple of years the Operating Margin of SYP has grown nicely.
The Gross Margin of SYP (79.68%) is better than 67.82% 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 RankSector Rank
OM 22.13%
PM (TTM) 36.94%
GM 79.68%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
SYP.DE Yearly Profit, Operating, Gross MarginsSYP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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9

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.
SYP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SYP has been increased compared to 5 years ago.
SYP has a better debt/assets ratio than last year.
SYP.DE Yearly Shares OutstandingSYP.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SYP.DE Yearly Total Debt VS Total AssetsSYP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 13.88 indicates that SYP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.88, SYP belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
SYP has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.01, SYP belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that SYP is not too dependend on debt financing.
The Debt to Equity ratio of SYP (0.00) is better than 88.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Altman-Z 13.88
ROIC/WACC0.84
WACC10.94%
SYP.DE Yearly LT Debt VS Equity VS FCFSYP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 2.44 indicates that SYP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.44, SYP belongs to the best of the industry, outperforming 81.61% of the companies in the same industry.
A Quick Ratio of 2.30 indicates that SYP has no problem at all paying its short term obligations.
The Quick ratio of SYP (2.30) is better than 81.61% of its industry peers.
Industry RankSector Rank
Current Ratio 2.44
Quick Ratio 2.3
SYP.DE Yearly Current Assets VS Current LiabilitesSYP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.45% over the past year.
Measured over the past years, SYP shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.99% on average per year.
The Revenue has been growing slightly by 4.87% in the past year.
SYP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.3%

3.2 Future

The Earnings Per Share is expected to grow by 11.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.78% on average over the next years. This is quite good.
EPS Next Y13.6%
EPS Next 2Y14.47%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue Next Year10.62%
Revenue Next 2Y11.8%
Revenue Next 3Y12.72%
Revenue Next 5Y12.78%

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.
SYP.DE Yearly Revenue VS EstimatesSYP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
SYP.DE Yearly EPS VS EstimatesSYP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.65, the valuation of SYP can be described as expensive.
62.07% of the companies in the same industry are more expensive than SYP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.47, SYP is valued a bit more expensive.
The Price/Forward Earnings ratio is 34.03, which means the current valuation is very expensive for SYP.
SYP's Price/Forward Earnings is on the same level as the industry average.
SYP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
Industry RankSector Rank
PE 38.65
Fwd PE 34.03
SYP.DE Price Earnings VS Forward Price EarningsSYP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

66.67% of the companies in the same industry are cheaper than SYP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 71.01
EV/EBITDA 45.94
SYP.DE Per share dataSYP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
The excellent profitability rating of SYP may justify a higher PE ratio.
A more expensive valuation may be justified as SYP's earnings are expected to grow with 15.68% in the coming years.
PEG (NY)2.84
PEG (5Y)1.61
EPS Next 2Y14.47%
EPS Next 3Y15.68%

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0

5. Dividend

5.1 Amount

No dividends for SYP!.
Industry RankSector Rank
Dividend Yield N/A

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SYNOPSYS INC

FRA:SYP (2/4/2025, 7:00:00 PM)

500.9

-3.3 (-0.65%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2024-12-04/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners94.53%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap77.43B
Analysts83.7
Price Target618.19 (23.42%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)2
Avg EPS beat(2)1.79%
Min EPS beat(2)0.99%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.23%
Min EPS beat(4)-0.41%
Max EPS beat(4)2.6%
EPS beat(8)7
Avg EPS beat(8)1.76%
EPS beat(12)10
Avg EPS beat(12)1.81%
EPS beat(16)13
Avg EPS beat(16)2%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.5%
Revenue beat(16)1
Avg Revenue beat(16)-1.26%
PT rev (1m)-2.64%
PT rev (3m)2.56%
EPS NQ rev (1m)-19.64%
EPS NQ rev (3m)-21.32%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-10.91%
Revenue NQ rev (3m)-12.37%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.72%
Valuation
Industry RankSector Rank
PE 38.65
Fwd PE 34.03
P/S 13.06
P/FCF 71.01
P/OCF 56.87
P/B 8.9
P/tB 14.97
EV/EBITDA 45.94
EPS(TTM)12.96
EY2.59%
EPS(NY)14.72
Fwd EY2.94%
FCF(TTM)7.05
FCFY1.41%
OCF(TTM)8.81
OCFY1.76%
SpS38.35
BVpS56.28
TBVpS33.47
PEG (NY)2.84
PEG (5Y)1.61
Profitability
Industry RankSector Rank
ROA 17.31%
ROE 25.17%
ROCE 13.01%
ROIC 9.16%
ROICexc 14.98%
ROICexgc 34.97%
OM 22.13%
PM (TTM) 36.94%
GM 79.68%
FCFM 18.39%
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.44%
ROIC(5y)10.08%
ROICexc(3y)15.82%
ROICexc(5y)13.68%
ROICexgc(3y)67.8%
ROICexgc(5y)61.25%
ROCE(3y)16.24%
ROCE(5y)14.32%
ROICexcg growth 3Y-16.41%
ROICexcg growth 5Y-15.6%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Debt/EBITDA 0.01
Cap/Depr 94.93%
Cap/Sales 4.57%
Interest Coverage 1665.49
Cash Conversion 85.23%
Profit Quality 49.79%
Current Ratio 2.44
Quick Ratio 2.3
Altman-Z 13.88
F-Score6
WACC10.94%
ROIC/WACC0.84
Cap/Depr(3y)179.62%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.28%
Cap/Sales(5y)8.78%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)19.45%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%7.26%
EPS Next Y13.6%
EPS Next 2Y14.47%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%2.3%
Revenue Next Year10.62%
Revenue Next 2Y11.8%
Revenue Next 3Y12.72%
Revenue Next 5Y12.78%
EBIT growth 1Y0.7%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year18.35%
EBIT Next 3Y14.23%
EBIT Next 5YN/A
FCF growth 1Y-7.15%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-17.39%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%