SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - Nasdaq - US8716071076 - Common Stock - Currency: USD
Taking everything into account, SNPS scores 6 out of 10 in our fundamental rating. SNPS was compared to 282 industry peers in the Software industry. SNPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNPS is quite expensive at the moment. It does show a decent growth rate. These ratings would make SNPS suitable for quality investing!
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.
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's Return On Assets of 16.18% is amongst the best of the industry. SNPS outperforms 92.20% of its industry peers.
The Return On Equity of SNPS (22.68%) is better than 87.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.28%, SNPS belongs to the top of the industry, outperforming 84.75% 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 12.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROIC | 9.28% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
1.3 Margins
The Profit Margin of SNPS (34.75%) is better than 95.04% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
The Operating Margin of SNPS (20.67%) is better than 88.30% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
SNPS has a Gross Margin of 79.64%. This is in the better half of the industry: SNPS outperforms 79.43% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% |
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
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.
SNPS has more shares outstanding than it did 1 year ago.
SNPS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNPS has an improved debt to assets ratio.
2.2 Solvency
SNPS has an Altman-Z score of 14.53. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.53, SNPS belongs to the top of the industry, outperforming 90.78% of the companies in the same industry.
SNPS has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
SNPS has a better Debt to FCF ratio (0.01) than 82.62% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that SNPS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, SNPS is doing good in the industry, outperforming 67.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 14.53 |
ROIC/WACC0.84
WACC11.06%
2.3 Liquidity
A Current Ratio of 2.68 indicates that SNPS has no problem at all paying its short term obligations.
The Current ratio of SNPS (2.68) is better than 72.69% of its industry peers.
A Quick Ratio of 2.51 indicates that SNPS has no problem at all paying its short term obligations.
The Quick ratio of SNPS (2.51) is better than 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.84% 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
The Revenue has been growing slightly by 1.33% in the past year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
EPS 1Y (TTM)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
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 12.72% yearly.
SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.63% yearly.
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
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
A Price/Earnings ratio of 39.80 indicates a quite expensive valuation of SNPS.
Compared to the rest of the industry, the Price/Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 63.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SNPS to the average of the S&P500 Index (26.35), we can say SNPS is valued expensively.
The Price/Forward Earnings ratio is 29.37, which means the current valuation is very expensive for SNPS.
SNPS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNPS is cheaper than 64.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, SNPS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.8 | ||
| Fwd PE | 29.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 67.02% of the companies listed in the same industry.
SNPS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.14 | ||
| EV/EBITDA | 47.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SNPS has an outstanding profitability rating, which may justify a higher PE ratio.
SNPS's earnings are expected to grow with 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)1.66
EPS Next 2Y14.07%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
No dividends for SNPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
511.79
+12.94 (+2.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.02%
Inst Owner Change4.31%
Ins Owners0.41%
Ins Owner Change4.45%
Market Cap79.13B
Analysts82.96
Price Target607.27 (18.66%)
Short Float %2.94%
Short Ratio3.37
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)2.76%
Min EPS beat(2)0.99%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.52%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)11
Avg EPS beat(12)2.26%
EPS beat(16)13
Avg EPS beat(16)2.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)1
Avg Revenue beat(16)-1.38%
PT rev (1m)-3.88%
PT rev (3m)-6%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.8 | ||
| Fwd PE | 29.37 | ||
| P/S | 13.03 | ||
| P/FCF | 65.14 | ||
| P/OCF | 55.44 | ||
| P/B | 8.5 | ||
| P/tB | 13.91 | ||
| EV/EBITDA | 47.67 |
EPS(TTM)12.86
EY2.51%
EPS(NY)17.42
Fwd EY3.4%
FCF(TTM)7.86
FCFY1.54%
OCF(TTM)9.23
OCFY1.8%
SpS39.27
BVpS60.18
TBVpS36.8
PEG (NY)2.93
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.18% | ||
| ROE | 22.68% | ||
| ROCE | 11.75% | ||
| ROIC | 9.28% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 30.42% | ||
| OM | 20.67% | ||
| PM (TTM) | 34.75% | ||
| GM | 79.64% | ||
| FCFM | 20.01% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)12.83%
ROIC(5y)11.31%
ROICexc(3y)17.76%
ROICexc(5y)15.35%
ROICexgc(3y)76.09%
ROICexgc(5y)68.74%
ROCE(3y)16.24%
ROCE(5y)14.32%
ROICexcg growth 3Y-16.41%
ROICexcg growth 5Y-15.6%
ROICexc growth 3Y9.63%
ROICexc growth 5Y8.74%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.04%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.99% | ||
| Profit Quality | 57.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 14.53 |
F-Score5
WACC11.06%
ROIC/WACC0.84
Cap/Depr(3y)179.62%
Cap/Depr(5y)180.51%
Cap/Sales(3y)8.28%
Cap/Sales(5y)8.78%
Profit Quality(3y)89.35%
Profit Quality(5y)101.69%
High Growth Momentum
Growth
EPS 1Y (TTM)5.84%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%-14.89%
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%-11.76%
Revenue Next Year10.34%
Revenue Next 2Y11.4%
Revenue Next 3Y12.41%
Revenue Next 5Y12.63%
EBIT growth 1Y-10.49%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.94%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y5.21%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-15.94%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%