SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
442.35 EUR
+1.7 (+0.39%)
SYP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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. While showing a medium growth rate, SYP is valued expensive at the moment.
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.
- 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.
- With a Return On Equity value of 4.70%, SYP perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 1.45%, SYP is in line with its industry, outperforming 50.40% of the companies in the same 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 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
- With a decent Profit Margin value of 18.89%, SYP is doing good in 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's Operating Margin of 12.97% is fine compared to the rest of the industry. SYP outperforms 64.80% of its industry peers.
- In the last couple of years the Operating Margin of SYP has declined.
- SYP's Gross Margin of 76.98% is in line compared 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SYP is destroying value.
- Compared to 1 year ago, SYP has more shares outstanding
- The number of shares outstanding for SYP has been increased compared to 5 years ago.
- SYP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.51 indicates that SYP is not in any danger for bankruptcy at the moment.
- SYP has a Altman-Z score (3.51) which is in line with its industry peers.
- A Debt/Equity ratio of 0.48 indicates that SYP is not too dependend on debt financing.
- The Debt to Equity ratio of SYP (0.48) is worse than 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.51 |
ROIC/WACC0.13
WACC10.82%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that SYP should not have too much problems paying 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.
- The Quick ratio of SYP (1.52) is comparable to the rest of the industry.
| 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.
- 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
- 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
- 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
- Based on the Price/Earnings ratio of 39.57, the valuation of SYP can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as SYP.
- When comparing the Price/Earnings ratio of SYP to the average of the S&P500 Index (27.54), we can say SYP is valued slightly more expensively.
- The Price/Forward Earnings ratio is 35.06, which means the current valuation is very expensive for SYP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SYP is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. SYP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.57 | ||
| Fwd PE | 35.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYP is valued a bit more expensive than the industry average as 60.80% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 68.6 |
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)3.07
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 (1/16/2026, 5:17:55 PM)
442.35
+1.7 (+0.39%)
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 Cap84.30B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target486.13 (9.9%)
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 | 39.57 | ||
| Fwd PE | 35.06 | ||
| P/S | 13.89 | ||
| P/FCF | N/A | ||
| P/OCF | 64.53 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.6 |
EPS(TTM)11.18
EY2.53%
EPS(NY)12.62
Fwd EY2.85%
FCF(TTM)-69.21
FCFYN/A
OCF(TTM)6.86
OCFY1.55%
SpS31.84
BVpS127.88
TBVpS-50.79
PEG (NY)3.07
PEG (5Y)2.13
Graham Number179.35
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 | 3.51 |
F-Score3
WACC10.82%
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 39.57 and the Price/Book (PB) ratio is 3.46.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.