Logo image of SNPS

SYNOPSYS INC (SNPS) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SNPS - US8716071076 - Common Stock

454.67 USD
+1.72 (+0.38%)
Last: 12/15/2025, 6:31:50 PM
454.65 USD
-0.02 (0%)
After Hours: 12/15/2025, 6:31:50 PM
Fundamental Rating

4

Taking everything into account, SNPS scores 4 out of 10 in our fundamental rating. SNPS was compared to 280 industry peers in the Software industry. While SNPS belongs to the best of the industry regarding profitability, there are concerns on its financial health. SNPS is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

SNPS had positive earnings in the past year.
In the past year SNPS had a positive cash flow from operations.
Of the past 5 years SNPS 4 years were profitable.
Of the past 5 years SNPS 4 years had a positive operating cash flow.
SNPS Yearly Net Income VS EBIT VS OCF VS FCFSNPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.14%, SNPS is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
With a decent Return On Equity value of 7.23%, SNPS is doing good in the industry, outperforming 71.07% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.95%, SNPS is doing good in the industry, outperforming 66.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNPS is in line with the industry average of 10.81%.
The 3 year average ROIC (12.78%) for SNPS is well above the current ROIC(1.95%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

SNPS has a better Profit Margin (31.04%) than 91.07% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
Looking at the Operating Margin, with a value of 17.16%, SNPS belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
SNPS's Operating Margin has improved in the last couple of years.
The Gross Margin of SNPS (79.12%) is better than 78.57% of its industry peers.
In the last couple of years the Gross Margin of SNPS has remained more or less at the same level.
Industry RankSector 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%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

More info and screens

3

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.
There is no outstanding debt for SNPS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.06 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS has a Altman-Z score (3.06) which is in line with its industry peers.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, SNPS is doing worse than 65.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 3.06
ROIC/WACC0.18
WACC10.97%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 1.62 indicates that SNPS should not have too much problems paying its short term obligations.
SNPS has a Current ratio (1.62) which 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 46.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.51
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

More info and screens

3

3. Growth

3.1 Past

SNPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.99%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 15.84% yearly.
Based on estimates for the next years, SNPS will show a quite strong growth in Revenue. The Revenue will grow by 15.94% on average per year.
EPS Next Y10.76%
EPS Next 2Y16.88%
EPS Next 3Y18.58%
EPS Next 5Y15.84%
Revenue Next Year37.25%
Revenue Next 2Y23.32%
Revenue Next 3Y18.79%
Revenue Next 5Y15.94%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 35.00, which means the current valuation is very expensive for SNPS.
SNPS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.55. SNPS is valued slightly more expensive when compared to this.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 31.60.
SNPS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, SNPS is valued a bit more expensive.
Industry RankSector Rank
PE 35
Fwd PE 31.6
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

SNPS's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 68.5
SNPS Per share dataSNPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100

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 a very decent profitability rating, which may justify a higher PE ratio.
SNPS's earnings are expected to grow with 18.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.25
PEG (5Y)1.89
EPS Next 2Y16.88%
EPS Next 3Y18.58%

More info and screens

0

5. Dividend

5.1 Amount

SNPS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

SYNOPSYS INC

NASDAQ:SNPS (12/15/2025, 6:31:50 PM)

After market: 454.65 -0.02 (0%)

454.67

+1.72 (+0.38%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners96.34%
Inst Owner Change19.55%
Ins Owners0.42%
Ins Owner Change9.02%
Market Cap86.65B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts79.35
Price Target559.48 (23.05%)
Short Float %2.28%
Short Ratio1.77
Dividend
Industry RankSector 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)-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)-1.22%
PT rev (3m)-3.65%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-25.69%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-14.41%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 35
Fwd PE 31.6
P/S 13.46
P/FCF N/A
P/OCF 60.1
P/B 3.14
P/tB N/A
EV/EBITDA 68.5
EPS(TTM)12.99
EY2.86%
EPS(NY)14.39
Fwd EY3.16%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.66%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)3.25
PEG (5Y)1.89
Graham Number205.8
Profitability
Industry RankSector 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 RankSector 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 3.06
F-Score2
WACC10.97%
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)-2.99%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y10.76%
EPS Next 2Y16.88%
EPS Next 3Y18.58%
EPS Next 5Y15.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%37.83%
Revenue Next Year37.25%
Revenue Next 2Y23.32%
Revenue Next 3Y18.79%
Revenue Next 5Y15.94%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year24.47%
EBIT Next 3Y26.84%
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 4 / 10 to SNPS.


What is the valuation status of SYNOPSYS INC (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.


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 grow by 10.76% in the next year.