SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - US8716071076 - Common Stock
606.52 USD
+8.35 (+1.4%)
606.52 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SNPS. SNPS was compared to 283 industry peers in the Software industry. While SNPS has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SNPS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SNPS was profitable.
In the past year SNPS had a positive cash flow from operations.
In the past 5 years SNPS has always been profitable.
Each year in the past 5 years SNPS had a positive operating cash flow.
1.2 Ratios
SNPS has a better Return On Assets (9.11%) than 84.10% of its industry peers.
SNPS has a Return On Equity of 21.82%. This is amongst the best in the industry. SNPS outperforms 88.34% of its industry peers.
SNPS has a Return On Invested Capital of 4.81%. This is in the better half of the industry: SNPS outperforms 73.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNPS is in line with the industry average of 11.99%.
The 3 year average ROIC (12.78%) for SNPS is well above the current ROIC(4.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROIC | 4.81% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.78%
ROIC(5y)11.28%
1.3 Margins
SNPS has a Profit Margin of 34.77%. This is amongst the best in the industry. SNPS outperforms 93.29% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
With an excellent Operating Margin value of 20.88%, SNPS belongs to the best of the industry, outperforming 87.28% of the companies in the same industry.
In the last couple of years the Operating Margin of SNPS has grown nicely.
Looking at the Gross Margin, with a value of 79.84%, SNPS is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
SNPS'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
SNPS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SNPS has more shares outstanding
Compared to 5 years ago, SNPS has more shares outstanding
The debt/assets ratio for SNPS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.54 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS has a Altman-Z score of 6.54. This is in the better half of the industry: SNPS outperforms 77.74% of its industry peers.
SNPS has a debt to FCF ratio of 9.41. This is a negative value and a sign of low solvency as SNPS would need 9.41 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.41, SNPS perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
SNPS has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
SNPS's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. SNPS is outperformed by 73.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 6.54 |
ROIC/WACC0.42
WACC11.35%
2.3 Liquidity
SNPS has a Current Ratio of 7.02. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNPS (7.02) is better than 92.58% of its industry peers.
A Quick Ratio of 6.85 indicates that SNPS has no problem at all paying its short term obligations.
SNPS has a Quick ratio of 6.85. This is amongst the best in the industry. SNPS outperforms 91.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.30%.
Measured over the past years, SNPS 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, SNPS shows a small growth in Revenue. The Revenue has grown by 7.50% in the last year.
Measured over the past years, SNPS 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.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.34% yearly.
EPS Next Y15.2%
EPS Next 2Y13.13%
EPS Next 3Y14.53%
EPS Next 5Y12.72%
Revenue Next Year11.2%
Revenue Next 2Y13.24%
Revenue Next 3Y13.9%
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.
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
The Price/Earnings ratio is 44.83, which means the current valuation is very expensive for SNPS.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.24, SNPS is valued quite expensively.
The Price/Forward Earnings ratio is 35.39, which means the current valuation is very expensive for SNPS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.82. SNPS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.83 | ||
| Fwd PE | 35.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
SNPS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.08 | ||
| EV/EBITDA | 67.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SNPS has an outstanding 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 14.53% in the coming years.
PEG (NY)2.95
PEG (5Y)1.87
EPS Next 2Y13.13%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
606.52
+8.35 (+1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.52%
Inst Owner Change1.62%
Ins Owners0.38%
Ins Owner Change8.55%
Market Cap112.23B
Analysts82.86
Price Target629.42 (3.78%)
Short Float %2.16%
Short Ratio2.36
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)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-5.45%
Revenue beat(16)0
Avg Revenue beat(16)-4.39%
PT rev (1m)5.36%
PT rev (3m)3.65%
EPS NQ rev (1m)-2.12%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.83 | ||
| Fwd PE | 35.39 | ||
| P/S | 18.04 | ||
| P/FCF | 105.08 | ||
| P/OCF | 91.53 | ||
| P/B | 11.32 | ||
| P/tB | 17.87 | ||
| EV/EBITDA | 67.84 |
EPS(TTM)13.53
EY2.23%
EPS(NY)17.14
Fwd EY2.83%
FCF(TTM)5.77
FCFY0.95%
OCF(TTM)6.63
OCFY1.09%
SpS33.62
BVpS53.59
TBVpS33.94
PEG (NY)2.95
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.11% | ||
| ROE | 21.82% | ||
| ROCE | 6.09% | ||
| ROIC | 4.81% | ||
| ROICexc | 14.48% | ||
| ROICexgc | 29.74% | ||
| 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)12.78%
ROIC(5y)11.28%
ROICexc(3y)17.68%
ROICexc(5y)15.31%
ROICexgc(3y)75.65%
ROICexgc(5y)68.48%
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 | 6.54 |
F-Score3
WACC11.35%
ROIC/WACC0.42
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 Y15.2%
EPS Next 2Y13.13%
EPS Next 3Y14.53%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year11.2%
Revenue Next 2Y13.24%
Revenue Next 3Y13.9%
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%