SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
FRA:SYP - Deutsche Boerse Ag - US8716071076 - Common Stock - Currency: EUR
Taking everything into account, SYP scores 6 out of 10 in our fundamental rating. SYP was compared to 99 industry peers in the Software industry. SYP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SYP has a correct valuation and a medium growth rate. These ratings would make SYP suitable for quality investing!
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.
Each year in the past 5 years SYP has been profitable.
SYP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SYP's Return On Assets of 16.18% is amongst the best of the industry. SYP outperforms 94.95% of its industry peers.
With an excellent Return On Equity value of 22.68%, SYP belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
SYP has a Return On Invested Capital of 8.27%. This is in the better half of the industry: SYP outperforms 66.67% of its industry peers.
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 11.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROIC | 8.27% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.44%
ROIC(5y)10.08%
1.3 Margins
The Profit Margin of SYP (34.75%) is better than 93.94% of its industry peers.
In the last couple of years the Profit Margin of SYP has grown nicely.
Looking at the Operating Margin, with a value of 20.67%, SYP belongs to the top of the industry, outperforming 80.81% of the companies in the same industry.
SYP's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.64%, SYP is doing good in the industry, outperforming 72.73% 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 | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SYP is destroying 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.
Compared to 1 year ago, SYP has an improved debt to assets ratio.
2.2 Solvency
SYP has an Altman-Z score of 13.05. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
SYP has a better Altman-Z score (13.05) than 95.96% of its industry peers.
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 95.96% of the companies in the same industry.
SYP has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, SYP belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 13.05 |
ROIC/WACC0.59
WACC13.94%
2.3 Liquidity
SYP has a Current Ratio of 2.68. This indicates that SYP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SYP (2.68) is better than 87.88% of its industry peers.
A Quick Ratio of 2.51 indicates that SYP has no problem at all paying its short term obligations.
SYP's Quick ratio of 2.51 is amongst the best of the industry. SYP outperforms 85.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.84% over the past year.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.33% 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)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
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 11.81% yearly.
Based on estimates for the next years, SYP will show a quite strong growth in Revenue. The Revenue will grow by 12.78% on average per year.
EPS Next Y13.6%
EPS Next 2Y14.45%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue Next Year10.59%
Revenue Next 2Y11.69%
Revenue Next 3Y12.62%
Revenue Next 5Y12.78%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.18, SYP can be considered very expensive at the moment.
SYP's Price/Earnings ratio is a bit cheaper when compared to the industry. SYP is cheaper than 67.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SYP is valued at the same level.
SYP is valuated quite expensively with a Price/Forward Earnings ratio of 25.05.
SYP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYP is cheaper than 67.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. SYP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SYP.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.92 | ||
| EV/EBITDA | 41.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYP has an outstanding profitability rating, which may justify a higher PE ratio.
SYP's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)1.42
EPS Next 2Y14.45%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (3/7/2025, 7:00:00 PM)
404.65
-9.45 (-2.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.02%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap62.57B
Analysts83.57
Price Target613.83 (51.69%)
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)2
Avg EPS beat(2)2.76%
Min EPS beat(2)0.99%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.52%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)11
Avg EPS beat(12)2.26%
EPS beat(16)13
Avg EPS beat(16)2.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)1
Avg Revenue beat(16)-1.38%
PT rev (1m)-0.71%
PT rev (3m)-1.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.18 | ||
| Fwd PE | 25.05 | ||
| P/S | 11.19 | ||
| P/FCF | 55.92 | ||
| P/OCF | 47.59 | ||
| P/B | 7.3 | ||
| P/tB | 11.94 | ||
| EV/EBITDA | 41.68 |
EPS(TTM)11.84
EY2.93%
EPS(NY)16.16
Fwd EY3.99%
FCF(TTM)7.24
FCFY1.79%
OCF(TTM)8.5
OCFY2.1%
SpS36.17
BVpS55.43
TBVpS33.9
PEG (NY)2.51
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROCE | 11.75% | ||
| ROIC | 8.27% | ||
| ROICexc | 12.85% | ||
| ROICexgc | 27.11% | ||
| OM | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% | ||
| FCFM | 20.01% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.99% | ||
| Profit Quality | 57.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 13.05 |
F-Score5
WACC13.94%
ROIC/WACC0.59
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)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
EPS Next Y13.6%
EPS Next 2Y14.45%
EPS Next 3Y15.68%
EPS Next 5Y11.81%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
Revenue Next Year10.59%
Revenue Next 2Y11.69%
Revenue Next 3Y12.62%
Revenue Next 5Y12.78%
EBIT growth 1Y-10.49%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year18.27%
EBIT Next 3Y14.14%
EBIT Next 5YN/A
FCF growth 1Y5.21%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-15.94%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%