SYNOPSYS INC (SNPS) Stock Fundamental Analysis

NASDAQ:SNPS • US8716071076

423.35 USD
0 (0%)
Last: Feb 13, 2026, 03:07 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 277 industry peers in the Software industry. SNPS scores excellent on profitability, 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

  • SNPS had positive earnings in the past year.
  • In the past year SNPS had a positive cash flow from operations.
  • Each year in the past 5 years SNPS has been profitable.
  • SNPS had a positive operating cash flow in each of the past 5 years.
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

  • With a decent Return On Assets value of 2.76%, SNPS is doing good in the industry, outperforming 63.90% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 4.70%, SNPS is in the better half of the industry, outperforming 67.15% of the companies in the same industry.
  • SNPS's Return On Invested Capital of 1.62% is fine compared to the rest of the industry. SNPS outperforms 64.98% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SNPS is below the industry average of 10.83%.
  • The last Return On Invested Capital (1.62%) for SNPS is well below the 3 year average (8.72%), which needs to be investigated, but indicates that SNPS had better years and this may not be a problem.
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

  • SNPS has a better Profit Margin (18.89%) than 82.31% 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 77.62% of the companies in the same industry.
  • SNPS's Operating Margin has declined in the last couple of years.
  • SNPS has a better Gross Margin (76.98%) than 72.20% 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 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNPS is destroying value.
  • The number of shares outstanding for SNPS has been increased compared to 1 year ago.
  • Compared to 5 years ago, SNPS has more shares outstanding
  • The debt/assets ratio for SNPS is higher compared to a year ago.
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 3.00. 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 3.00, SNPS is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
  • A Debt/Equity ratio of 0.48 indicates that SNPS is not too dependend on debt financing.
  • SNPS has a worse Debt to Equity ratio (0.48) than 65.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF N/A
Altman-Z 3
ROIC/WACC0.15
WACC10.98%
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

  • 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.
  • SNPS's Current ratio of 1.62 is in line compared to the rest of the industry. SNPS outperforms 49.82% of its industry peers.
  • SNPS has a Quick Ratio of 1.52. 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 of 1.52. This is comparable to the rest of the industry: SNPS outperforms 46.21% 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

More info and screens

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.
  • SNPS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.12%.
  • 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.
  • Based on estimates for the next years, SNPS will show a quite strong growth in Revenue. The Revenue will grow by 15.79% on average per year.
EPS Next Y12.88%
EPS Next 2Y15.28%
EPS Next 3Y16.25%
EPS Next 5Y14.48%
Revenue Next Year36.66%
Revenue Next 2Y23.03%
Revenue Next 3Y19.06%
Revenue Next 5Y15.79%

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.
  • 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

  • SNPS is valuated quite expensively with a Price/Earnings ratio of 32.59.
  • SNPS's Price/Earnings ratio is in line with the industry average.
  • SNPS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 28.87, the valuation of SNPS can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SNPS.
  • SNPS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.59
Fwd PE 28.87
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

  • SNPS's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 57.85
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.
  • SNPS has a very decent profitability rating, which 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)2.53
PEG (5Y)1.76
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 (2/13/2026, 3:07:06 PM)

423.35

0 (0%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10
Earnings (Next)02-25
Inst Owners93.54%
Inst Owner Change-2.06%
Ins Owners0.41%
Ins Owner Change1.52%
Market Cap80.68B
Revenue(TTM)7.05B
Net Income(TTM)1.33B
Analysts81.29
Price Target567.61 (34.08%)
Short Float %2.61%
Short Ratio2.47
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)0.02%
PT rev (3m)0.22%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)9.08%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 32.59
Fwd PE 28.87
P/S 11.44
P/FCF N/A
P/OCF 53.13
P/B 2.85
P/tB N/A
EV/EBITDA 57.85
EPS(TTM)12.99
EY3.07%
EPS(NY)14.66
Fwd EY3.46%
FCF(TTM)-80.45
FCFYN/A
OCF(TTM)7.97
OCFY1.88%
SpS37.02
BVpS148.65
TBVpS-59.04
PEG (NY)2.53
PEG (5Y)1.76
Graham Number208.44
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
F-Score3
WACC10.98%
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 2Y23.03%
Revenue Next 3Y19.06%
Revenue Next 5Y15.79%
EBIT growth 1Y-32.51%
EBIT growth 3Y-7.6%
EBIT growth 5Y7.68%
EBIT Next Year82.5%
EBIT Next 3Y31.78%
EBIT Next 5Y15.27%
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.