SYNOPSYS INC (1SNPS.MI) Stock Fundamental Analysis
BIT:1SNPS - Euronext Milan - US8716071076 - Common Stock - Currency: EUR
Taking everything into account, 1SNPS scores 6 out of 10 in our fundamental rating. 1SNPS was compared to 104 industry peers in the Software industry. 1SNPS has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1SNPS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1SNPS was profitable.
1SNPS had a positive operating cash flow in the past year.
In the past 5 years 1SNPS has always been profitable.
Each year in the past 5 years 1SNPS had a positive operating cash flow.
1.2 Ratios
1SNPS has a Return On Assets of 9.11%. This is amongst the best in the industry. 1SNPS outperforms 82.69% of its industry peers.
With an excellent Return On Equity value of 21.82%, 1SNPS belongs to the best of the industry, outperforming 85.58% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.56%, 1SNPS is doing good in the industry, outperforming 60.58% of the companies in the same industry.
1SNPS had an Average Return On Invested Capital over the past 3 years of 12.13%. This is in line with the industry average of 11.38%.
The 3 year average ROIC (12.13%) for 1SNPS is well above the current ROIC(4.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROIC | 4.56% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.13%
ROIC(5y)10.7%
1.3 Margins
With an excellent Profit Margin value of 34.77%, 1SNPS belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
1SNPS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.88%, 1SNPS belongs to the best of the industry, outperforming 81.73% of the companies in the same industry.
In the last couple of years the Operating Margin of 1SNPS has grown nicely.
1SNPS has a better Gross Margin (79.84%) than 70.19% of its industry peers.
1SNPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 34.77% | ||
| GM | 79.84% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.03%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SNPS is creating some value.
Compared to 1 year ago, 1SNPS has more shares outstanding
1SNPS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1SNPS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.75 indicates that 1SNPS is not in any danger for bankruptcy at the moment.
1SNPS has a Altman-Z score of 5.75. This is in the better half of the industry: 1SNPS outperforms 70.19% of its industry peers.
1SNPS has a debt to FCF ratio of 9.41. This is a negative value and a sign of low solvency as 1SNPS would need 9.41 years to pay back of all of its debts.
1SNPS's Debt to FCF ratio of 9.41 is in line compared to the rest of the industry. 1SNPS outperforms 50.96% of its industry peers.
1SNPS has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
1SNPS's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. 1SNPS is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.4
WACC11.42%
2.3 Liquidity
A Current Ratio of 7.02 indicates that 1SNPS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.02, 1SNPS belongs to the top of the industry, outperforming 93.27% of the companies in the same industry.
1SNPS has a Quick Ratio of 6.85. This indicates that 1SNPS is financially healthy and has no problem in meeting its short term obligations.
1SNPS has a Quick ratio of 6.85. This is amongst the best in the industry. 1SNPS outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.30% 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 7.50% in the past year.
1SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
EPS 1Y (TTM)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
3.2 Future
Based on estimates for the next years, 1SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.72% on average per year.
Based on estimates for the next years, 1SNPS will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue Next Year10.15%
Revenue Next 2Y11.26%
Revenue Next 3Y11.93%
Revenue Next 5Y11.34%
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 44.19, 1SNPS can be considered very expensive at the moment.
65.38% of the companies in the same industry are more expensive than 1SNPS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. 1SNPS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.32, which means the current valuation is very expensive for 1SNPS.
1SNPS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.80. 1SNPS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.19 | ||
| Fwd PE | 34.32 |
4.2 Price Multiples
1SNPS's Enterprise Value to EBITDA ratio is in line with the industry average.
1SNPS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.57 | ||
| EV/EBITDA | 56.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SNPS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1SNPS may justify a higher PE ratio.
A more expensive valuation may be justified as 1SNPS's earnings are expected to grow with 15.21% in the coming years.
PEG (NY)3.25
PEG (5Y)1.84
EPS Next 2Y14.07%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
No dividends for 1SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SNPS (7/24/2025, 7:00:00 PM)
518.8
+109.45 (+26.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap80.22B
Analysts82.96
Price TargetN/A
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)5.39%
Min EPS beat(2)4.52%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)3.59%
Min EPS beat(4)0.99%
Max EPS beat(4)6.25%
EPS beat(8)7
Avg EPS beat(8)2.64%
EPS beat(12)11
Avg EPS beat(12)2.49%
EPS beat(16)13
Avg EPS beat(16)2.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)0
Avg Revenue beat(12)-8.33%
Revenue beat(16)0
Avg Revenue beat(16)-6.55%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.19 | ||
| Fwd PE | 34.32 | ||
| P/S | 14.86 | ||
| P/FCF | 86.57 | ||
| P/OCF | 75.41 | ||
| P/B | 9.33 | ||
| P/tB | 14.72 | ||
| EV/EBITDA | 56.22 |
EPS(TTM)11.74
EY2.26%
EPS(NY)15.12
Fwd EY2.91%
FCF(TTM)5.99
FCFY1.16%
OCF(TTM)6.88
OCFY1.33%
SpS34.91
BVpS55.63
TBVpS35.24
PEG (NY)3.25
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROCE | 6.09% | ||
| ROIC | 4.56% | ||
| ROICexc | 13.75% | ||
| ROICexgc | 28.23% | ||
| OM | 20.88% | ||
| PM (TTM) | 34.77% | ||
| GM | 79.84% | ||
| FCFM | 17.17% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.13%
ROIC(5y)10.7%
ROICexc(3y)16.79%
ROICexc(5y)14.53%
ROICexgc(3y)71.82%
ROICexgc(5y)65.01%
ROCE(3y)16.17%
ROCE(5y)14.27%
ROICexcg growth 3Y-16.41%
ROICexcg growth 5Y-15.59%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.03%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score3
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 58.99% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.23% | ||
| Profit Quality | 49.37% | ||
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 | ||
| Altman-Z | 5.75 |
F-Score3
WACC11.42%
ROIC/WACC0.4
Cap/Depr(3y)179.61%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.65%
Cap/Sales(5y)9%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year10.15%
Revenue Next 2Y11.26%
Revenue Next 3Y11.93%
Revenue Next 5Y11.34%
EBIT growth 1Y-9.11%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.94%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y-5.73%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-25.73%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%