516.31 USD
+8.12 (+1.6%)
517 USD
+0.69 (+0.13%)
Overall SNPS gets a fundamental rating of 4 out of 10. We evaluated SNPS against 277 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are concerns on its financial health. SNPS 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 SNPS was profitable.
- SNPS had a positive operating cash flow in the past year.
- SNPS had positive earnings in each of the past 5 years.
- Each year in the past 5 years SNPS had a positive operating cash flow.
1.2 Ratios
- SNPS has a better Return On Assets (2.76%) than 64.26% of its industry peers.
- The Return On Equity of SNPS (4.70%) is better than 67.51% of its industry peers.
- SNPS's Return On Invested Capital of 1.62% is fine compared to the rest of the industry. SNPS outperforms 65.70% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SNPS is below the industry average of 10.78%.
- The 3 year average ROIC (8.72%) for SNPS is well above the current ROIC(1.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROIC | 1.62% |
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
1.3 Margins
- With an excellent Profit Margin value of 18.89%, SNPS belongs to the best of the industry, outperforming 81.23% of the companies in the same industry.
- SNPS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 12.97%, SNPS is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
- In the last couple of years the Operating Margin of SNPS has declined.
- The Gross Margin of SNPS (76.98%) is better than 72.56% of its industry peers.
- SNPS'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
- SNPS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SNPS has been increased compared to 1 year ago.
- Compared to 5 years ago, SNPS has more shares outstanding
- SNPS has a worse debt/assets ratio than last year.
2.2 Solvency
- SNPS has an Altman-Z score of 3.53. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
- SNPS has a better Altman-Z score (3.53) than 66.06% of its industry peers.
- SNPS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.48, SNPS is not doing good in the industry: 64.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.53 |
ROIC/WACC0.15
WACC11.02%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that SNPS should not have too much problems paying its short term obligations.
- The Current ratio of SNPS (1.62) is comparable to the rest of the industry.
- SNPS has a Quick Ratio of 1.52. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.52, SNPS perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- The earnings per share for SNPS have decreased by -1.67% in the last year.
- Measured over the past years, SNPS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.54% on average per year.
- SNPS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.12%.
- 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
- SNPS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.48% yearly.
- SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.79% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 39.75, the valuation of SNPS can be described as expensive.
- SNPS's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of SNPS to the average of the S&P500 Index (27.38), we can say SNPS is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 35.20, the valuation of SNPS can be described as expensive.
- SNPS's Price/Forward Earnings ratio is in line with the industry average.
- SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 35.2 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 69.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNPS does not grow enough to justify the current Price/Earnings ratio.
- SNPS has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SNPS's earnings are expected to grow with 16.32% in the coming years.
PEG (NY)3.08
PEG (5Y)2.14
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
- No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
516.31
+8.12 (+1.6%)
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 Change1.2%
Ins Owners0.41%
Ins Owner Change9.32%
Market Cap98.39B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target565.91 (9.61%)
Short Float %2.33%
Short Ratio2.01
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)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)0
Avg Revenue beat(16)-4.52%
PT rev (1m)1.15%
PT rev (3m)-1.24%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)11.69%
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 | 39.75 | ||
| Fwd PE | 35.2 | ||
| P/S | 13.95 | ||
| P/FCF | N/A | ||
| P/OCF | 64.79 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 69.09 |
EPS(TTM)12.99
EY2.52%
EPS(NY)14.67
Fwd EY2.84%
FCF(TTM)-80.45
FCFYN/A
OCF(TTM)7.97
OCFY1.54%
SpS37.02
BVpS148.65
TBVpS-59.04
PEG (NY)3.08
PEG (5Y)2.14
Graham Number208.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 4.7% | ||
| ROCE | 2.06% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.74% | ||
| ROICexgc | 36.84% | ||
| 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)8.72%
ROIC(5y)9.91%
ROICexc(3y)12.25%
ROICexc(5y)13.51%
ROICexgc(3y)51.97%
ROICexgc(5y)66.2%
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 | 3.53 |
F-Score3
WACC11.02%
ROIC/WACC0.15
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 / SNPS FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SNPS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SNPS.
What is the valuation status for SNPS stock?
ChartMill assigns a valuation rating of 2 / 10 to SYNOPSYS INC (SNPS). This can be considered as Overvalued.
How profitable is SYNOPSYS INC (SNPS) stock?
SYNOPSYS INC (SNPS) has a profitability rating of 7 / 10.
What is the expected EPS growth for SYNOPSYS INC (SNPS) stock?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to grow by 12.9% in the next year.