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SYNOPSYS INC (SNPS) Stock Fundamental Analysis

USA - NASDAQ:SNPS - US8716071076 - Common Stock

483.85 USD
-4.93 (-1.01%)
Last: 10/2/2025, 10:02:04 AM
Fundamental Rating

5

Taking everything into account, SNPS scores 5 out of 10 in our fundamental rating. SNPS was compared to 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.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year SNPS was profitable.
SNPS had a positive operating cash flow in the past year.
Each year in the past 5 years SNPS has been profitable.
In the past 5 years SNPS always reported a positive cash flow from operatings.
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

SNPS's Return On Assets of 4.14% is fine compared to the rest of the industry. SNPS outperforms 70.82% of its industry peers.
Looking at the Return On Equity, with a value of 7.23%, SNPS is in the better half of the industry, outperforming 71.53% 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 66.19% 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 11.95%.
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's Profit Margin of 31.04% is amongst the best of the industry. SNPS outperforms 91.81% 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 83.99% of its industry peers.
In the last couple of years the Operating Margin of SNPS has grown nicely.
Looking at the Gross Margin, with a value of 79.12%, SNPS is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
SNPS's Gross Margin has been stable in the last couple of years.
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

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3

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
SNPS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SNPS has been reduced compared to a year ago.
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 3.19 indicates that SNPS is not in any danger for bankruptcy at the moment.
SNPS's Altman-Z score of 3.19 is in line compared to the rest of the industry. SNPS outperforms 59.07% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SNPS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SNPS is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 3.19
ROIC/WACC0.17
WACC11.35%
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

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.
With a Current ratio value of 1.62, SNPS perfoms like the industry average, outperforming 51.96% of the companies in the same 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.
The Quick ratio of SNPS (1.51) is comparable to the rest of the industry.
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

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6

3. Growth

3.1 Past

SNPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
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 8.00% 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)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

The Earnings Per Share is expected to grow by 12.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.84% on average over the next years. This is quite good.
EPS Next Y1.74%
EPS Next 2Y3.74%
EPS Next 3Y10.05%
EPS Next 5Y12.72%
Revenue Next Year15.24%
Revenue Next 2Y25.34%
Revenue Next 3Y20.33%
Revenue Next 5Y19.84%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

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2

4. Valuation

4.1 Price/Earnings Ratio

SNPS is valuated quite expensively with a Price/Earnings ratio of 35.87.
61.92% of the companies in the same industry are more expensive than SNPS, based on the Price/Earnings ratio.
SNPS is valuated rather expensively when we compare the Price/Earnings ratio to 27.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.58, which means the current valuation is very expensive for SNPS.
The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 35.87
Fwd PE 33.58
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

Based on the Enterprise Value to EBITDA ratio, SNPS is valued a bit cheaper than the industry average as 60.14% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 71.63
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.
The excellent profitability rating of SNPS may justify a higher PE ratio.
PEG (NY)20.59
PEG (5Y)1.5
EPS Next 2Y3.74%
EPS Next 3Y10.05%

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0

5. Dividend

5.1 Amount

SNPS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SYNOPSYS INC

NASDAQ:SNPS (10/2/2025, 10:02:04 AM)

483.85

-4.93 (-1.01%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)09-09 2025-09-09/amc
Earnings (Next)12-02 2025-12-02/amc
Inst Owners80.76%
Inst Owner Change1.58%
Ins Owners0.42%
Ins Owner Change8.49%
Market Cap89.88B
Analysts82.86
Price Target580.67 (20.01%)
Short Float %2.46%
Short Ratio1.64
Dividend
Industry RankSector 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)-10.21%
PT rev (3m)-2.8%
EPS NQ rev (1m)-16.95%
EPS NQ rev (3m)-18.34%
EPS NY rev (1m)-11.03%
EPS NY rev (3m)-11.02%
Revenue NQ rev (1m)8.01%
Revenue NQ rev (3m)16.76%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)4.7%
Valuation
Industry RankSector Rank
PE 35.87
Fwd PE 33.58
P/S 13.97
P/FCF N/A
P/OCF 62.34
P/B 3.25
P/tB N/A
EV/EBITDA 71.63
EPS(TTM)13.49
EY2.79%
EPS(NY)14.41
Fwd EY2.98%
FCF(TTM)-82.79
FCFYN/A
OCF(TTM)7.76
OCFY1.6%
SpS34.64
BVpS148.67
TBVpS-66.82
PEG (NY)20.59
PEG (5Y)1.5
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%
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-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 3.19
F-Score2
WACC11.35%
ROIC/WACC0.17
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 Y1.74%
EPS Next 2Y3.74%
EPS Next 3Y10.05%
EPS Next 5Y12.72%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year15.24%
Revenue Next 2Y25.34%
Revenue Next 3Y20.33%
Revenue Next 5Y19.84%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year17.77%
EBIT Next 3Y25.97%
EBIT Next 5YN/A
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%