SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:SYP • US8716071076
397.25 EUR
+2.7 (+0.68%)
Last: Feb 2, 2026, 05:21 PM
SYP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 115 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 valied quite expensively at the moment, while 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.
- Each year in the past 5 years SYP has been profitable.
- 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.
- SYP has a Return On Invested Capital (1.45%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for SYP is significantly below the industry average of 13.06%.
- 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
- The Profit Margin of SYP (18.89%) is better than 73.91% of its industry peers.
- SYP's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 12.97%, SYP is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
- SYP's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 76.98%, SYP is doing good in the industry, outperforming 61.74% 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 | 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.
- SYP has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SYP has more shares outstanding
- The debt/assets ratio for SYP is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.27 indicates that SYP is not in any danger for bankruptcy at the moment.
- SYP has a Altman-Z score of 3.27. This is comparable to the rest of the industry: SYP outperforms 54.78% of 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 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.27 |
ROIC/WACC0.13
WACC10.92%
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 has a Current ratio (1.62) which is comparable to the rest of the 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.
- 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
- SYP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
- The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
- Looking at the last year, SYP shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
- 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.
- 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 Y12.73%
EPS Next 2Y15.35%
EPS Next 3Y16.34%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y23.03%
Revenue Next 3Y19.06%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 36.44, SYP can be considered very expensive at the moment.
- SYP's Price/Earnings is on the same level as the industry average.
- SYP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.41.
- The Price/Forward Earnings ratio is 32.33, which means the current valuation is very expensive for SYP.
- SYP's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. SYP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.44 | ||
| Fwd PE | 32.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYP is valued a bit more expensive than 61.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 63.52 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent 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 16.34% in the coming years.
PEG (NY)2.86
PEG (5Y)1.97
EPS Next 2Y15.35%
EPS Next 3Y16.34%
5. Dividend
5.1 Amount
- SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 6 / 10.
Can you provide the PE and PB ratios for SYP stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SYP.DE) is 36.44 and the Price/Book (PB) ratio is 3.19.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SYP.DE) is 3 / 10.