SYNOPSYS INC (1SNPS.MI) Stock Fundamental Analysis
Europe - BIT:1SNPS - US8716071076 - Common Stock
385.1 EUR
-16.8 (-4.18%)
We assign a fundamental rating of 4 out of 10 to 1SNPS. 1SNPS was compared to 111 industry peers in the Software industry. 1SNPS has an excellent profitability rating, but there are 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.
Each year in the past 5 years 1SNPS has been profitable.
In the past 5 years 1SNPS always reported a positive cash flow from operatings.
1.2 Ratios
1SNPS's Return On Assets of 4.14% is in line compared to the rest of the industry. 1SNPS outperforms 54.95% of its industry peers.
1SNPS has a Return On Equity (7.23%) which is comparable to the rest of the industry.
1SNPS has a Return On Invested Capital of 1.85%. This is comparable to the rest of the industry: 1SNPS outperforms 51.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SNPS is in line with the industry average of 12.85%.
The last Return On Invested Capital (1.85%) for 1SNPS is well below the 3 year average (12.13%), which needs to be investigated, but indicates that 1SNPS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROIC | 1.85% |
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
1SNPS's Profit Margin of 31.04% is amongst the best of the industry. 1SNPS outperforms 90.99% of its industry peers.
In the last couple of years the Profit Margin of 1SNPS has grown nicely.
The Operating Margin of 1SNPS (17.16%) is better than 72.07% of its industry peers.
1SNPS's Operating Margin has improved in the last couple of years.
The Gross Margin of 1SNPS (79.12%) is better than 67.57% of its industry peers.
In the last couple of years the Gross Margin of 1SNPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% |
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
1SNPS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1SNPS has been increased compared to 1 year ago.
The number of shares outstanding for 1SNPS has been increased compared to 5 years ago.
Compared to 1 year ago, 1SNPS has an improved debt to assets ratio.
2.2 Solvency
1SNPS has an Altman-Z score of 2.97. This is not the best score and indicates that 1SNPS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, 1SNPS is in line with its industry, outperforming 45.05% of the companies in the same industry.
1SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating 1SNPS is somewhat dependend on debt financing.
1SNPS's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. 1SNPS is outperformed by 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.97 |
ROIC/WACC0.17
WACC11.03%
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 better Current ratio (1.62) than 61.26% of its industry peers.
A Quick Ratio of 1.51 indicates that 1SNPS should not have too much problems paying its short term obligations.
1SNPS has a better Quick ratio (1.51) than 61.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.51% over the past year.
Measured over the past years, 1SNPS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.99% on average per year.
Looking at the last year, 1SNPS shows a small growth in Revenue. The Revenue has grown by 8.00% in the last year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
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 12.59% on average per year.
The Revenue is expected to grow by 16.71% on average over the next years. This is quite good.
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.14, the valuation of 1SNPS can be described as expensive.
Based on the Price/Earnings ratio, 1SNPS is valued a bit cheaper than the industry average as 69.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1SNPS to the average of the S&P500 Index (27.08), we can say 1SNPS is valued slightly more expensively.
1SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 31.22.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SNPS.
1SNPS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 31.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 66.23 |
4.3 Compensation for Growth
The decent profitability rating of 1SNPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y3.42%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
No dividends for 1SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SNPS (10/14/2025, 7:00:00 PM)
385.1
-16.8 (-4.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner ChangeN/A
Market Cap71.53B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts79.29
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)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-10.9%
Max EPS beat(2)6.25%
EPS beat(4)3
Avg EPS beat(4)0.22%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)6
Avg EPS beat(8)0.89%
EPS beat(12)10
Avg EPS beat(12)1.29%
EPS beat(16)13
Avg EPS beat(16)1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.64%
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)-4.24%
Revenue beat(12)0
Avg Revenue beat(12)-8.61%
Revenue beat(16)0
Avg Revenue beat(16)-6.71%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-25.72%
EPS NQ rev (3m)-39.34%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-13.9%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)15.45%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 31.22 | ||
| P/S | 12.91 | ||
| P/FCF | N/A | ||
| P/OCF | 57.62 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 66.23 |
EPS(TTM)11.62
EY3.02%
EPS(NY)12.33
Fwd EY3.2%
FCF(TTM)-71.3
FCFYN/A
OCF(TTM)6.68
OCFY1.74%
SpS29.84
BVpS128.03
TBVpS-57.54
PEG (NY)N/A
PEG (5Y)1.38
Graham Number182.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROCE | 2.47% | ||
| ROIC | 1.85% | ||
| ROICexc | 1.96% | ||
| ROICexgc | 38.23% | ||
| OM | 17.16% | ||
| PM (TTM) | 31.04% | ||
| GM | 79.12% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-16.41%
ROICexgc 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-Score2
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.01 | ||
| Cap/Depr | 5156.15% | ||
| Cap/Sales | 261.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.97 |
F-Score2
WACC11.03%
ROIC/WACC0.17
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)2.51%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-1.17%
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year17.77%
EBIT Next 3Y25.97%
EBIT Next 5Y24.99%
FCF growth 1Y-1098.34%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-18.58%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%
SYNOPSYS INC / 1SNPS.MI FAQ
What is the fundamental rating for 1SNPS stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1SNPS.MI.
What is the valuation status of SYNOPSYS INC (1SNPS.MI) stock?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
What are the PE and PB ratios of SYNOPSYS INC (1SNPS.MI) stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (1SNPS.MI) is 33.14 and the Price/Book (PB) ratio is 3.01.