SYNOPSYS INC (1SNPS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SNPS - US8716071076 - Common Stock
439.7 EUR
+49.75 (+12.76%)
We assign a fundamental rating of 4 out of 10 to 1SNPS. 1SNPS was compared to 119 industry peers in the Software industry. 1SNPS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1SNPS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1SNPS had positive earnings in the past year.
- In the past year 1SNPS had a positive cash flow from operations.
- 1SNPS had positive earnings in each of the past 5 years.
- In the past 5 years 1SNPS always reported a positive cash flow from operatings.
1.2 Ratios
- 1SNPS has a Return On Assets (2.76%) which is in line with its industry peers.
- 1SNPS has a Return On Equity (4.70%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 1.54%, 1SNPS is in line with its industry, outperforming 52.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SNPS is significantly below the industry average of 13.47%.
- The last Return On Invested Capital (1.54%) for 1SNPS is well below the 3 year average (8.28%), which needs to be investigated, but indicates that 1SNPS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROIC | 1.54% |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.28%
ROIC(5y)9.4%
1.3 Margins
- 1SNPS has a better Profit Margin (18.89%) than 76.00% of its industry peers.
- In the last couple of years the Profit Margin of 1SNPS has remained more or less at the same level.
- With a decent Operating Margin value of 12.97%, 1SNPS is doing good in the industry, outperforming 64.80% of the companies in the same industry.
- 1SNPS's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 76.98%, 1SNPS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- 1SNPS'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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1SNPS is destroying value.
- Compared to 1 year ago, 1SNPS has more shares outstanding
- The number of shares outstanding for 1SNPS has been increased compared to 5 years ago.
- The debt/assets ratio for 1SNPS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.50 indicates that 1SNPS is not in any danger for bankruptcy at the moment.
- 1SNPS has a Altman-Z score (3.50) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.48 indicates that 1SNPS is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.48, 1SNPS is not doing good in the industry: 62.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.5 |
ROIC/WACC0.14
WACC11.06%
2.3 Liquidity
- 1SNPS has a Current Ratio of 1.62. This is a normal value and indicates that 1SNPS is financially healthy and should not expect problems in meeting its short term obligations.
- 1SNPS has a Current ratio of 1.62. This is comparable to the rest of the industry: 1SNPS outperforms 59.20% of its industry peers.
- A Quick Ratio of 1.52 indicates that 1SNPS should not have too much problems paying its short term obligations.
- 1SNPS's Quick ratio of 1.52 is in line compared to the rest of the industry. 1SNPS outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- 1SNPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
- 1SNPS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
- Looking at the last year, 1SNPS shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
- The Revenue has been growing by 13.87% on average over the past years. This is quite good.
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 2Y23.06%
Revenue Next 3Y19.12%
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 39.33, the valuation of 1SNPS can be described as expensive.
- 1SNPS's Price/Earnings ratio is in line with the industry average.
- 1SNPS is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 34.83, 1SNPS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SNPS is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. 1SNPS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.33 | ||
| Fwd PE | 34.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1SNPS 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 | 68.42 |
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 1SNPS's earnings are expected to grow with 16.32% in the coming years.
PEG (NY)3.05
PEG (5Y)2.12
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
- No dividends for 1SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1SNPS (1/8/2026, 7:00:00 PM)
439.7
+49.75 (+12.76%)
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 Cap83.79B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target477.94 (8.7%)
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)-3.29%
Revenue beat(12)0
Avg Revenue beat(12)-5.63%
Revenue beat(16)0
Avg Revenue beat(16)-6.68%
PT rev (1m)-0.31%
PT rev (3m)N/A
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)12.58%
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.33 | ||
| Fwd PE | 34.83 | ||
| P/S | 13.8 | ||
| P/FCF | N/A | ||
| P/OCF | 64.1 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 68.42 |
EPS(TTM)11.18
EY2.54%
EPS(NY)12.62
Fwd EY2.87%
FCF(TTM)-69.26
FCFYN/A
OCF(TTM)6.86
OCFY1.56%
SpS31.86
BVpS127.96
TBVpS-50.82
PEG (NY)3.05
PEG (5Y)2.12
Graham Number179.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROCE | 2.06% | ||
| ROIC | 1.54% | ||
| ROICexc | 1.65% | ||
| ROICexgc | 34.97% | ||
| 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)8.28%
ROIC(5y)9.4%
ROICexc(3y)11.63%
ROICexc(5y)12.83%
ROICexgc(3y)49.34%
ROICexgc(5y)62.85%
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 | 3.5 |
F-Score3
WACC11.06%
ROIC/WACC0.14
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 2Y23.06%
Revenue Next 3Y19.12%
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 / 1SNPS.MI FAQ
What is the fundamental rating for 1SNPS stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1SNPS.MI.
What is the valuation status for 1SNPS stock?
ChartMill assigns a valuation rating of 1 / 10 to SYNOPSYS INC (1SNPS.MI). This can be considered as Overvalued.
Can you provide the profitability details for SYNOPSYS INC?
SYNOPSYS INC (1SNPS.MI) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for 1SNPS stock?
The Earnings per Share (EPS) of SYNOPSYS INC (1SNPS.MI) is expected to grow by 12.9% in the next year.