SYNOPSYS INC (1SNPS.MI) Stock Fundamental Analysis
BIT:1SNPS - Euronext Milan - US8716071076 - Common Stock - Currency: EUR
1SNPS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 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
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.
In the past 5 years 1SNPS always reported a positive cash flow from operatings.
1.2 Ratios
1SNPS has a Return On Assets of 9.11%. This is amongst the best in the industry. 1SNPS outperforms 85.29% of its industry peers.
With an excellent Return On Equity value of 21.82%, 1SNPS belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
1SNPS has a Return On Invested Capital of 4.56%. This is comparable to the rest of the industry: 1SNPS outperforms 59.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SNPS is in line with the industry average of 10.45%.
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
The Profit Margin of 1SNPS (34.77%) is better than 95.10% of its industry peers.
1SNPS's Profit Margin has improved in the last couple of years.
1SNPS's Operating Margin of 20.88% is amongst the best of the industry. 1SNPS outperforms 82.35% of its industry peers.
In the last couple of years the Operating Margin of 1SNPS has grown nicely.
With a decent Gross Margin value of 79.84%, 1SNPS is doing good in the industry, outperforming 71.57% 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.
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
1SNPS has an Altman-Z score of 4.90. This indicates that 1SNPS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.90, 1SNPS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 49.02% 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.
Looking at the Debt to Equity ratio, with a value of 1.01, 1SNPS is doing worse than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 4.9 |
ROIC/WACC0.41
WACC11.25%
2.3 Liquidity
1SNPS has a Current Ratio of 7.02. This indicates that 1SNPS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 7.02, 1SNPS belongs to the best of the industry, outperforming 95.10% of the companies in the same industry.
A Quick Ratio of 6.85 indicates that 1SNPS has no problem at all paying its short term obligations.
The Quick ratio of 1SNPS (6.85) is better than 95.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
1SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.30%.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
Looking at the last year, 1SNPS shows a small growth in Revenue. The Revenue has grown by 7.50% in the last 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.
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue Next Year10.34%
Revenue Next 2Y11.4%
Revenue Next 3Y12.41%
Revenue Next 5Y12.63%
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.
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
1SNPS is valuated quite expensively with a Price/Earnings ratio of 34.81.
Based on the Price/Earnings ratio, 1SNPS is valued a bit cheaper than 71.57% of the companies in the same industry.
1SNPS is valuated rather expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.02, which means the current valuation is very expensive for 1SNPS.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SNPS.
When comparing the Price/Forward Earnings ratio of 1SNPS to the average of the S&P500 Index (22.30), we can say 1SNPS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.81 | ||
| Fwd PE | 27.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SNPS is on the same level as its industry peers.
1SNPS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.16 | ||
| EV/EBITDA | 43.67 |
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 excellent profitability rating of 1SNPS may justify a higher PE ratio.
1SNPS's earnings are expected to grow with 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)1.45
EPS Next 2Y14.07%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
1SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SNPS (6/3/2025, 7:00:00 PM)
413.5
+14.3 (+3.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.02%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap63.94B
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)5.41%
Min EPS beat(2)4.52%
Max EPS beat(2)6.3%
EPS beat(4)4
Avg EPS beat(4)3.6%
Min EPS beat(4)0.99%
Max EPS beat(4)6.3%
EPS beat(8)7
Avg EPS beat(8)2.65%
EPS beat(12)11
Avg EPS beat(12)2.5%
EPS beat(16)13
Avg EPS beat(16)2.03%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
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)-6.54%
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 | 34.81 | ||
| Fwd PE | 27.02 | ||
| P/S | 11.7 | ||
| P/FCF | 68.16 | ||
| P/OCF | 59.37 | ||
| P/B | 7.34 | ||
| P/tB | 11.59 | ||
| EV/EBITDA | 43.67 |
EPS(TTM)11.88
EY2.87%
EPS(NY)15.3
Fwd EY3.7%
FCF(TTM)6.07
FCFY1.47%
OCF(TTM)6.96
OCFY1.68%
SpS35.34
BVpS56.32
TBVpS35.68
PEG (NY)2.56
PEG (5Y)1.45
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 | 4.9 |
F-Score3
WACC11.25%
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 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 Year10.34%
Revenue Next 2Y11.4%
Revenue Next 3Y12.41%
Revenue Next 5Y12.63%
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%