SYNOPSYS INC (SNPS) Stock Fundamental Analysis

NASDAQ:SNPS • US8716071076

420.82 USD
-19.12 (-4.35%)
At close: Feb 23, 2026
421 USD
+0.18 (+0.04%)
After Hours: 2/23/2026, 6:03:39 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

SNPS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 274 industry peers in the Software industry. SNPS has an excellent profitability rating, but there are concerns on its financial health. SNPS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5B -10B -15B

1.2 Ratios

  • SNPS's Return On Assets of 2.76% is fine compared to the rest of the industry. SNPS outperforms 63.50% of its industry peers.
  • SNPS has a better Return On Equity (4.70%) than 66.06% of its industry peers.
  • SNPS has a better Return On Invested Capital (1.62%) than 64.96% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SNPS is below the industry average of 10.76%.
  • The 3 year average ROIC (8.72%) for SNPS is well above the current ROIC(1.62%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.76%
ROE 4.7%
ROIC 1.62%
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
SNPS Yearly ROA, ROE, ROICSNPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • The Profit Margin of SNPS (18.89%) is better than 81.75% of its industry peers.
  • SNPS's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 12.97%, SNPS is doing good in the industry, outperforming 77.37% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SNPS has declined.
  • Looking at the Gross Margin, with a value of 76.98%, SNPS is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SNPS has remained more or less at the same level.
Industry RankSector Rank
OM 12.97%
PM (TTM) 18.89%
GM 76.98%
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
SNPS Yearly Profit, Operating, Gross MarginsSNPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • SNPS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • SNPS has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SNPS has been increased compared to 5 years ago.
  • Compared to 1 year ago, SNPS has a worse debt to assets ratio.
SNPS Yearly Shares OutstandingSNPS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
SNPS Yearly Total Debt VS Total AssetsSNPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • SNPS has an Altman-Z score of 3.10. This indicates that SNPS is financially healthy and has little risk of bankruptcy at the moment.
  • SNPS's Altman-Z score of 3.10 is fine compared to the rest of the industry. SNPS outperforms 65.69% of its industry peers.
  • A Debt/Equity ratio of 0.48 indicates that SNPS is not too dependend on debt financing.
  • The Debt to Equity ratio of SNPS (0.48) is worse than 66.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF N/A
Altman-Z 3.1
ROIC/WACC0.15
WACC10.91%
SNPS Yearly LT Debt VS Equity VS FCFSNPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B

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 in line with its industry peers.
  • A Quick Ratio of 1.52 indicates that SNPS should not have too much problems paying its short term obligations.
  • SNPS's Quick ratio of 1.52 is in line compared to the rest of the industry. SNPS outperforms 46.35% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.52
SNPS Yearly Current Assets VS Current LiabilitesSNPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The earnings per share for SNPS have decreased by -1.67% in the last year.
  • The Earnings Per Share has been growing by 18.54% on average over the past years. This is quite good.
  • Looking at the last year, SNPS shows a quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
  • SNPS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.87% yearly.
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%

3.2 Future

  • Based on estimates for the next years, SNPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
  • SNPS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.92% yearly.
EPS Next Y12.88%
EPS Next 2Y15.28%
EPS Next 3Y16.25%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y22.98%
Revenue Next 3Y18.94%
Revenue Next 5Y14.92%

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.
SNPS Yearly Revenue VS EstimatesSNPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
SNPS Yearly EPS VS EstimatesSNPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

More info and screens

Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 32.40, the valuation of SNPS can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as SNPS.
  • SNPS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.64.
  • The Price/Forward Earnings ratio is 28.70, which means the current valuation is very expensive for SNPS.
  • SNPS's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of SNPS to the average of the S&P500 Index (27.75), we can say SNPS is valued inline with the index average.
Industry RankSector Rank
PE 32.4
Fwd PE 28.7
SNPS Price Earnings VS Forward Price EarningsSNPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNPS.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 60.06
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 decent profitability rating of SNPS may justify a higher PE ratio.
  • SNPS's earnings are expected to grow with 16.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.52
PEG (5Y)1.75
EPS Next 2Y15.28%
EPS Next 3Y16.25%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

SYNOPSYS INC

NASDAQ:SNPS (2/23/2026, 6:03:39 PM)

After market: 421 +0.18 (+0.04%)

420.82

-19.12 (-4.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10
Earnings (Next)02-25
Inst Owners93.54%
Inst Owner Change0.09%
Ins Owners0.41%
Ins Owner Change1.73%
Market Cap80.51B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts80.65
Price Target567.61 (34.88%)
Short Float %2.43%
Short Ratio2.16
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)-4.27%
Min EPS beat(2)-10.9%
Max EPS beat(2)2.36%
EPS beat(4)3
Avg EPS beat(4)0.56%
Min EPS beat(4)-10.9%
Max EPS beat(4)6.25%
EPS beat(8)5
Avg EPS beat(8)0.25%
EPS beat(12)9
Avg EPS beat(12)0.93%
EPS beat(16)12
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.62%
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)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)0
Avg Revenue beat(16)-4.52%
PT rev (1m)0.3%
PT rev (3m)0.22%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)10.3%
EPS NY rev (1m)0.13%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 32.4
Fwd PE 28.7
P/S 11.41
P/FCF N/A
P/OCF 53.02
P/B 2.84
P/tB N/A
EV/EBITDA 60.06
EPS(TTM)12.99
EY3.09%
EPS(NY)14.66
Fwd EY3.48%
FCF(TTM)-80.14
FCFYN/A
OCF(TTM)7.94
OCFY1.89%
SpS36.87
BVpS148.06
TBVpS-58.81
PEG (NY)2.52
PEG (5Y)1.75
Graham Number208.03
Profitability
Industry RankSector Rank
ROA 2.76%
ROE 4.7%
ROCE 2.06%
ROIC 1.62%
ROICexc 1.74%
ROICexgc 36.84%
OM 12.97%
PM (TTM) 18.89%
GM 76.98%
FCFM N/A
ROA(3y)10.66%
ROA(5y)10.22%
ROE(3y)16.63%
ROE(5y)16.41%
ROIC(3y)8.72%
ROIC(5y)9.91%
ROICexc(3y)12.25%
ROICexc(5y)13.51%
ROICexgc(3y)51.97%
ROICexgc(5y)66.2%
ROCE(3y)11.04%
ROCE(5y)12.54%
ROICexgc growth 3Y-30.11%
ROICexgc growth 5Y-5.25%
ROICexc growth 3Y-54.14%
ROICexc growth 5Y-30.5%
OM growth 3Y-19.79%
OM growth 5Y-5.43%
PM growth 3Y-3.98%
PM growth 5Y0.93%
GM growth 3Y-1.5%
GM growth 5Y-0.37%
F-Score3
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF N/A
Debt/EBITDA 8.55
Cap/Depr 2551.48%
Cap/Sales 238.88%
Interest Coverage 2.59
Cash Conversion 96.4%
Profit Quality N/A
Current Ratio 1.62
Quick Ratio 1.52
Altman-Z 3.1
F-Score3
WACC10.91%
ROIC/WACC0.15
Cap/Depr(3y)948.17%
Cap/Depr(5y)656.53%
Cap/Sales(3y)84.22%
Cap/Sales(5y)54.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.67%
EPS 3Y13.39%
EPS 5Y18.54%
EPS Q2Q%-14.71%
EPS Next Y12.88%
EPS Next 2Y15.28%
EPS Next 3Y16.25%
EPS Next 5Y14.48%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y15.19%
Revenue growth 5Y13.87%
Sales Q2Q%37.83%
Revenue Next Year36.66%
Revenue Next 2Y22.98%
Revenue Next 3Y18.94%
Revenue Next 5Y14.92%
EBIT growth 1Y-32.51%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year82.5%
EBIT Next 3Y31.78%
EBIT Next 5Y15.28%
FCF growth 1Y-1460.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.93%
OCF growth 3Y-4.41%
OCF growth 5Y8.9%

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 12.88% in the next year.