SYNOPSYS INC (1SNPS.MI) Stock Fundamental Analysis
BIT:1SNPS - US8716071076 - Common Stock
514 EUR
-4.8 (-0.93%)
Overall 1SNPS gets a fundamental rating of 6 out of 10. We evaluated 1SNPS against 108 industry peers in the Software industry. While 1SNPS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
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 in the better half of the industry: 1SNPS outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 21.82%, 1SNPS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Invested Capital of 1SNPS (4.56%) is comparable to the rest of the 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 12.57%.
The last Return On Invested Capital (4.56%) 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 | 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 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SNPS has grown nicely.
With a decent Operating Margin value of 20.88%, 1SNPS is doing good in the industry, outperforming 77.78% of the companies in the same industry.
1SNPS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.84%, 1SNPS is doing good in the industry, outperforming 68.52% of the companies in the same industry.
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 | 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.
1SNPS has more shares outstanding than it did 1 year ago.
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 6.55 indicates that 1SNPS is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1SNPS (6.55) is better than 73.15% 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 has a Debt to FCF ratio of 9.41. This is comparable to the rest of the industry: 1SNPS outperforms 48.15% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that 1SNPS has dependencies on debt financing.
1SNPS has a worse Debt to Equity ratio (1.01) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 6.55 |
ROIC/WACC0.41
WACC11.24%
2.3 Liquidity
A Current Ratio of 7.02 indicates that 1SNPS has no problem at all paying its short term obligations.
1SNPS has a Current ratio of 7.02. This is amongst the best in the industry. 1SNPS outperforms 93.52% of its industry peers.
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 91.67% 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
1SNPS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
Measured over the past years, 1SNPS shows a quite strong growth in Revenue. The Revenue has been growing by 12.76% on average per year.
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
The Earnings Per Share is expected to grow by 12.72% on average over the next years. This is quite good.
1SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.34% yearly.
EPS Next Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue Next Year12.53%
Revenue Next 2Y15.57%
Revenue Next 3Y15.07%
Revenue Next 5Y11.34%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 44.27, which means the current valuation is very expensive for 1SNPS.
Compared to the rest of the industry, the Price/Earnings ratio of 1SNPS is on the same level as its industry peers.
1SNPS is valuated expensively when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.14, which means the current valuation is very expensive for 1SNPS.
1SNPS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.76. 1SNPS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.27 | ||
| Fwd PE | 35.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1SNPS is valued a bit more expensive than 60.19% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.82 | ||
| EV/EBITDA | 67.97 |
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.
1SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
1SNPS's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.08
PEG (5Y)1.85
EPS Next 2Y12.85%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
1SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SNPS (8/21/2025, 7:00:00 PM)
514
-4.8 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.52%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap95.11B
Analysts82.86
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)-0.17%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.27 | ||
| Fwd PE | 35.14 | ||
| P/S | 17.82 | ||
| P/FCF | 103.82 | ||
| P/OCF | 90.43 | ||
| P/B | 11.18 | ||
| P/tB | 17.65 | ||
| EV/EBITDA | 67.97 |
EPS(TTM)11.61
EY2.26%
EPS(NY)14.63
Fwd EY2.85%
FCF(TTM)4.95
FCFY0.96%
OCF(TTM)5.68
OCFY1.11%
SpS28.84
BVpS45.97
TBVpS29.12
PEG (NY)3.08
PEG (5Y)1.85
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 | 6.55 |
F-Score3
WACC11.24%
ROIC/WACC0.41
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 Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year12.53%
Revenue Next 2Y15.57%
Revenue Next 3Y15.07%
Revenue Next 5Y11.34%
EBIT growth 1Y-9.11%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.89%
EBIT Next 3Y19.4%
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%