SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - FRA:SYP - US8716071076 - Common Stock
391.3 EUR
+10.45 (+2.74%)
Taking everything into account, SYP scores 4 out of 10 in our fundamental rating. SYP was compared to 111 industry peers in the Software industry. While SYP has a great profitability rating, there are quite some concerns on its financial health. SYP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SYP was profitable.
SYP had a positive operating cash flow in the past year.
In the past 5 years SYP has always been profitable.
Each year in the past 5 years SYP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.14%, SYP is in line with its industry, outperforming 54.05% of the companies in the same industry.
The Return On Equity of SYP (7.23%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.74%, SYP is in line with its industry, outperforming 48.65% of the companies in the same industry.
SYP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is in line with the industry average of 12.85%.
The 3 year average ROIC (11.39%) for SYP is well above the current ROIC(1.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROIC | 1.74% |
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.39%
ROIC(5y)10.05%
1.3 Margins
SYP's Profit Margin of 31.04% is amongst the best of the industry. SYP outperforms 90.99% of its industry peers.
In the last couple of years the Profit Margin of SYP has grown nicely.
SYP's Operating Margin of 17.16% is fine compared to the rest of the industry. SYP outperforms 69.37% of its industry peers.
SYP's Operating Margin has improved in the last couple of years.
SYP has a better Gross Margin (79.12%) than 65.77% of its industry peers.
In the last couple of years the Gross Margin of SYP 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
SYP 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, SYP has more shares outstanding
Compared to 5 years ago, SYP has more shares outstanding
Compared to 1 year ago, SYP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that SYP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SYP (2.93) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that SYP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SYP is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.16
WACC11.03%
2.3 Liquidity
SYP has a Current Ratio of 1.62. This is a normal value and indicates that SYP is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.62, SYP is doing good in the industry, outperforming 61.26% of the companies in the same industry.
SYP has a Quick Ratio of 1.51. This is a normal value and indicates that SYP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SYP (1.51) is better than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
SYP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
Measured over the past years, SYP shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.99% on average per year.
The Revenue has been growing slightly by 8.00% in the past year.
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
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
SYP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.59% yearly.
Based on estimates for the next years, SYP will show a quite strong growth in Revenue. The Revenue will grow by 16.71% on average per year.
EPS Next Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.50 indicates a quite expensive valuation of SYP.
Based on the Price/Earnings ratio, SYP is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. SYP is valued slightly more expensive when compared to this.
SYP is valuated quite expensively with a Price/Forward Earnings ratio of 31.55.
SYP's Price/Forward Earnings ratio is in line with the industry average.
SYP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 31.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYP indicates a slightly more expensive valuation: SYP is more expensive than 63.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 65.28 |
4.3 Compensation for Growth
The decent profitability rating of SYP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y3.42%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (10/31/2025, 7:00:00 PM)
391.3
+10.45 (+2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner ChangeN/A
Market Cap72.68B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts79.29
Price Target478.13 (22.19%)
Short Float %N/A
Short RatioN/A
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)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)0.58%
PT rev (3m)-7.28%
EPS NQ rev (1m)-25.72%
EPS NQ rev (3m)-39.42%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-15.1%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)12.62%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 31.55 | ||
| P/S | 13.05 | ||
| P/FCF | N/A | ||
| P/OCF | 58.23 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 65.28 |
EPS(TTM)11.68
EY2.98%
EPS(NY)12.4
Fwd EY3.17%
FCF(TTM)-71.68
FCFYN/A
OCF(TTM)6.72
OCFY1.72%
SpS30
BVpS128.71
TBVpS-57.85
PEG (NY)N/A
PEG (5Y)1.4
Graham Number183.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.23% | ||
| ROCE | 2.47% | ||
| ROIC | 1.74% | ||
| ROICexc | 1.84% | ||
| ROICexgc | 35.88% | ||
| 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)11.39%
ROIC(5y)10.05%
ROICexc(3y)15.76%
ROICexc(5y)13.64%
ROICexgc(3y)67.42%
ROICexgc(5y)61.02%
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 | 2.93 |
F-Score2
WACC11.03%
ROIC/WACC0.16
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 Y-2.19%
EPS Next 2Y3.42%
EPS Next 3Y9.52%
EPS Next 5Y12.59%
Revenue 1Y (TTM)8%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%14.03%
Revenue Next Year14.79%
Revenue Next 2Y25.58%
Revenue Next 3Y20.4%
Revenue Next 5Y16.71%
EBIT growth 1Y-24.76%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year17.77%
EBIT Next 3Y25.97%
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 / SYP.DE FAQ
What is the ChartMill fundamental rating of SYNOPSYS INC (SYP.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SYP.DE.
What is the valuation status of SYNOPSYS INC (SYP.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to SYNOPSYS INC (SYP.DE). This can be considered as Overvalued.
Can you provide the profitability details for SYNOPSYS INC?
SYNOPSYS INC (SYP.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SYNOPSYS INC (SYP.DE) stock?
The Price/Earnings (PE) ratio for SYNOPSYS INC (SYP.DE) is 33.5 and the Price/Book (PB) ratio is 3.04.