388.36 USD
+2.76 (+0.72%)
389 USD
+0.64 (+0.16%)
SNPS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. SNPS scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, SNPS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SNPS had positive earnings in the past year.
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 Return On Assets of 4.14%. This is in the better half of the industry: SNPS outperforms 71.17% of its industry peers.
SNPS has a better Return On Equity (7.23%) than 71.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.95%, SNPS is in the better half of the industry, outperforming 66.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNPS is in line with the industry average of 12.04%.
The last Return On Invested Capital (1.95%) for SNPS is well below the 3 year average (12.78%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROIC | 1.95% |
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 31.04%. This is amongst the best in the industry. SNPS outperforms 91.46% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
The Operating Margin of SNPS (17.16%) is better than 82.92% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
SNPS has a better Gross Margin (79.12%) than 78.29% of its industry peers.
SNPS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNPS is still creating some value.
SNPS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SNPS has been increased compared to 5 years ago.
The debt/assets ratio for SNPS has been reduced compared to a year ago.
2.2 Solvency
SNPS has an Altman-Z score of 2.65. This is not the best score and indicates that SNPS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SNPS (2.65) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
The Debt to Equity ratio of SNPS (0.52) is worse than 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.65 |
ROIC/WACC0.18
WACC10.98%
2.3 Liquidity
SNPS has a Current Ratio of 1.62. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting 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 1.51. This is a normal value and indicates that SNPS is financially healthy and should not expect problems in meeting its short term obligations.
SNPS has a Quick ratio of 1.51. This is comparable to the rest of the industry: SNPS outperforms 46.98% 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.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
SNPS shows a small growth in Revenue. In the last year, the Revenue has grown by 8.00%.
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
SNPS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.59% yearly.
The Revenue is expected to grow by 16.71% on average over the next years. This is quite good.
EPS Next Y-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SNPS is valuated quite expensively with a Price/Earnings ratio of 28.79.
Based on the Price/Earnings ratio, SNPS is valued a bit cheaper than the industry average as 64.41% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SNPS to the average of the S&P500 Index (25.45), we can say SNPS is valued inline with the index average.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 27.03.
Based on the Price/Forward Earnings ratio, SNPS is valued a bit cheaper than the industry average as 61.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. SNPS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 27.03 |
4.2 Price Multiples
SNPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 60.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 58.59 |
4.3 Compensation for Growth
The excellent profitability rating of SNPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y3.59%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
388.36
+2.76 (+0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change19.4%
Ins Owners0.42%
Ins Owner Change8.2%
Market Cap72.14B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts77.93
Price Target566.37 (45.84%)
Short Float %2.2%
Short Ratio1.2
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)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-5.73%
Revenue beat(16)0
Avg Revenue beat(16)-4.55%
PT rev (1m)-1.16%
PT rev (3m)-12.42%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 27.03 | ||
| P/S | 11.21 | ||
| P/FCF | N/A | ||
| P/OCF | 50.04 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 58.59 |
EPS(TTM)13.49
EY3.47%
EPS(NY)14.37
Fwd EY3.7%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY2%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)N/A
PEG (5Y)1.2
Graham Number212.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROCE | 2.47% | ||
| ROIC | 1.95% | ||
| ROICexc | 2.07% | ||
| ROICexgc | 40.27% | ||
| 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)12.78%
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%
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 | 2.65 |
F-Score2
WACC10.98%
ROIC/WACC0.18
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-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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 / SNPS FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SNPS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SNPS.
What is the valuation status of SYNOPSYS INC (SNPS) stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 10.
How financially healthy is SYNOPSYS INC?
The financial health rating of SYNOPSYS INC (SNPS) is 3 / 10.
What is the earnings growth outlook for SYNOPSYS INC?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to decline by -2.17% in the next year.