508.77 USD
+14.58 (+2.95%)
508.519 USD
-0.25 (-0.05%)
We assign a fundamental rating of 4 out of 10 to SNPS. SNPS was compared to 276 industry peers in the Software industry. While SNPS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SNPS does not seem to be growing, but still is valued expensively.
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.
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 69.93% of the companies in the same industry.
SNPS has a better Return On Equity (7.23%) than 69.57% of its industry peers.
SNPS has a Return On Invested Capital of 1.95%. This is in the better half of the industry: SNPS outperforms 66.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNPS is in line with the industry average of 10.78%.
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 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 better Profit Margin (31.04%) than 89.86% of its industry peers.
In the last couple of years the Profit Margin of SNPS has grown nicely.
SNPS has a better Operating Margin (17.16%) than 82.97% of its industry peers.
SNPS's Operating Margin has improved in the last couple of years.
SNPS has a Gross Margin of 79.12%. This is in the better half of the industry: SNPS outperforms 78.26% 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 | 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SNPS has an Altman-Z score of 3.29. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
SNPS has a better Altman-Z score (3.29) than 63.41% of its industry peers.
SNPS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SNPS is somewhat dependend on debt financing.
The Debt to Equity ratio of SNPS (0.52) is worse than 65.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.29 |
ROIC/WACC0.18
WACC10.92%
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 50.00% 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.
SNPS has a Quick ratio (1.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for SNPS have decreased by -1.67% in the last year.
SNPS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.54% yearly.
EPS 1Y (TTM)-1.67%
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
The Earnings Per Share is expected to grow by 15.84% on average over the next years. This is quite good.
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 Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y15.84%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.17, which means the current valuation is very expensive for SNPS.
SNPS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.17, SNPS is valued a bit more expensive.
SNPS is valuated quite expensively with a Price/Forward Earnings ratio of 34.69.
SNPS's Price/Forward Earnings ratio is in line with the industry average.
SNPS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.17 | ||
| Fwd PE | 34.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 74 |
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.
A more expensive valuation may be justified as SNPS's earnings are expected to grow with 16.32% in the coming years.
PEG (NY)3.04
PEG (5Y)2.11
EPS Next 2Y15.44%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
SNPS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
508.77
+14.58 (+2.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change9.07%
Market Cap96.96B
Revenue(TTM)N/A
Net Income(TTM)2.00B
Analysts79.35
Price Target567.48 (11.54%)
Short Float %2.33%
Short Ratio2.01
Dividend
| Industry Rank | Sector 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)5
Avg EPS beat(8)0.24%
EPS beat(12)9
Avg EPS beat(12)0.86%
EPS beat(16)12
Avg EPS beat(16)1.03%
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)0.2%
PT rev (3m)-0.97%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.17 | ||
| Fwd PE | 34.69 | ||
| P/S | 15.07 | ||
| P/FCF | N/A | ||
| P/OCF | 67.25 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 74 |
EPS(TTM)12.99
EY2.55%
EPS(NY)14.67
Fwd EY2.88%
FCF(TTM)-80.7
FCFYN/A
OCF(TTM)7.57
OCFY1.49%
SpS33.77
BVpS144.9
TBVpS-65.13
PEG (NY)3.04
PEG (5Y)2.11
Graham Number205.8
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 | 3.29 |
F-Score2
WACC10.92%
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)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y12.9%
EPS Next 2Y15.44%
EPS Next 3Y16.32%
EPS Next 5Y15.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%37.83%
Revenue Next Year36.7%
Revenue Next 2Y23.08%
Revenue Next 3Y19.01%
Revenue Next 5Y15.94%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year23.73%
EBIT Next 3Y31.33%
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 for 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.
What is the expected EPS growth for SYNOPSYS INC (SNPS) stock?
The Earnings per Share (EPS) of SYNOPSYS INC (SNPS) is expected to grow by 12.9% in the next year.