SYNOPSYS INC (SNPS) Stock Fundamental Analysis
NASDAQ:SNPS - Nasdaq - US8716071076 - Common Stock - Currency: USD
Overall SNPS gets a fundamental rating of 6 out of 10. We evaluated SNPS against 283 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SNPS a very profitable company, without any liquidiy or solvency issues. SNPS is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make SNPS a good candidate for quality investing.
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.
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
With an excellent Return On Assets value of 16.18%, SNPS belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
SNPS's Return On Equity of 22.68% is amongst the best of the industry. SNPS outperforms 87.99% of its industry peers.
With an excellent Return On Invested Capital value of 9.28%, SNPS belongs to the best of the industry, outperforming 84.45% 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 12.03%.
| 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
SNPS has a better Profit Margin (34.75%) than 95.05% of its industry peers.
SNPS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.67%, SNPS belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
SNPS's Operating Margin has improved in the last couple of years.
SNPS has a Gross Margin of 79.64%. This is amongst the best in the industry. SNPS outperforms 80.57% 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 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
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.
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 14.00 indicates that SNPS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.00, SNPS belongs to the best of the industry, outperforming 92.23% 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 Debt to FCF ratio of 0.01. This is amongst the best in the industry. SNPS outperforms 82.69% 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 67.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 14 |
ROIC/WACC0.86
WACC10.76%
2.3 Liquidity
SNPS has a Current Ratio of 2.68. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
SNPS has a Current ratio of 2.68. This is in the better half of the industry: SNPS outperforms 71.38% of its industry peers.
SNPS has a Quick Ratio of 2.51. This indicates that SNPS is financially healthy and has no problem in meeting its short term obligations.
SNPS has a better Quick ratio (2.51) than 69.61% 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.
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 1.33% in the last year.
SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
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.
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
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
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 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 37.12, which means the current valuation is very expensive for SNPS.
63.25% 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 28.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.40, the valuation of SNPS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNPS indicates a somewhat cheap valuation: SNPS is cheaper than 68.90% of the companies listed in the same industry.
SNPS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 27.4 |
4.2 Price Multiples
68.20% of the companies in the same industry are more expensive than SNPS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.77 | ||
| EV/EBITDA | 45.51 |
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 15.21% in the coming years.
PEG (NY)2.73
PEG (5Y)1.55
EPS Next 2Y14.07%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
477.41
+5.13 (+1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.02%
Inst Owner Change0.55%
Ins Owners0.41%
Ins Owner Change4.45%
Market Cap73.82B
Analysts82.96
Price Target610.67 (27.91%)
Short Float %2.78%
Short Ratio2.97
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)-4.68%
PT rev (3m)-5.4%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 27.4 | ||
| P/S | 12.16 | ||
| P/FCF | 60.77 | ||
| P/OCF | 51.72 | ||
| P/B | 7.93 | ||
| P/tB | 12.97 | ||
| EV/EBITDA | 45.51 |
EPS(TTM)12.86
EY2.69%
EPS(NY)17.42
Fwd EY3.65%
FCF(TTM)7.86
FCFY1.65%
OCF(TTM)9.23
OCFY1.93%
SpS39.27
BVpS60.18
TBVpS36.8
PEG (NY)2.73
PEG (5Y)1.55
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 |
F-Score5
WACC10.76%
ROIC/WACC0.86
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 Year20.61%
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%