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SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis

FRA:SYP - Deutsche Boerse Ag - US8716071076 - Common Stock - Currency: EUR

412.85  -4.5 (-1.08%)

Fundamental Rating

6

Overall SYP gets a fundamental rating of 6 out of 10. We evaluated SYP against 102 industry peers in the Software industry. While SYP has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SYP is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

SYP had positive earnings in the past year.
In the past year SYP had a positive cash flow from operations.
Each year in the past 5 years SYP has been profitable.
SYP had a positive operating cash flow in each of the past 5 years.
SYP.DE Yearly Net Income VS EBIT VS OCF VS FCFSYP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

SYP has a better Return On Assets (9.11%) than 85.29% of its industry peers.
SYP has a better Return On Equity (21.82%) than 87.25% of its industry peers.
SYP's Return On Invested Capital of 4.28% is fine compared to the rest of the industry. SYP outperforms 60.78% of its industry peers.
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 10.32%.
The 3 year average ROIC (11.39%) for SYP is well above the current ROIC(4.28%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 9.11%
ROE 21.82%
ROIC 4.28%
ROA(3y)13.22%
ROA(5y)11.32%
ROE(3y)21.01%
ROE(5y)18.18%
ROIC(3y)11.39%
ROIC(5y)10.05%
SYP.DE Yearly ROA, ROE, ROICSYP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

SYP has a better Profit Margin (34.77%) than 96.08% of its industry peers.
SYP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.88%, SYP belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
SYP's Operating Margin has improved in the last couple of years.
SYP has a Gross Margin of 79.84%. This is in the better half of the industry: SYP outperforms 71.57% of its industry peers.
SYP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.88%
PM (TTM) 34.77%
GM 79.84%
OM growth 3Y6.59%
OM growth 5Y6.25%
PM growth 3Y27.03%
PM growth 5Y18.45%
GM growth 3Y0.07%
GM growth 5Y0.53%
SYP.DE Yearly Profit, Operating, Gross MarginsSYP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYP is creating some value.
SYP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SYP has been increased compared to 5 years ago.
Compared to 1 year ago, SYP has an improved debt to assets ratio.
SYP.DE Yearly Shares OutstandingSYP.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SYP.DE Yearly Total Debt VS Total AssetsSYP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

SYP has an Altman-Z score of 4.93. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
SYP's Altman-Z score of 4.93 is fine compared to the rest of the industry. SYP outperforms 66.67% of its industry peers.
SYP has a debt to FCF ratio of 9.41. This is a negative value and a sign of low solvency as SYP would need 9.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.41, SYP is in line with its industry, outperforming 50.00% of the companies in the same industry.
SYP has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
SYP's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. SYP is outperformed by 79.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF 9.41
Altman-Z 4.93
ROIC/WACC0.47
WACC9.02%
SYP.DE Yearly LT Debt VS Equity VS FCFSYP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 7.02 indicates that SYP has no problem at all paying its short term obligations.
The Current ratio of SYP (7.02) is better than 94.12% of its industry peers.
SYP has a Quick Ratio of 6.85. This indicates that SYP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 6.85, SYP belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 7.02
Quick Ratio 6.85
SYP.DE Yearly Current Assets VS Current LiabilitesSYP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.30% over the past year.
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 7.50% in the past year.
Measured over the past years, SYP shows a quite strong growth in Revenue. The Revenue has been growing by 12.76% on average per year.
EPS 1Y (TTM)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%

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 12.72% yearly.
The Revenue is expected to grow by 11.34% 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 Year10.15%
Revenue Next 2Y11.26%
Revenue Next 3Y11.93%
Revenue Next 5Y11.34%

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.
SYP.DE Yearly Revenue VS EstimatesSYP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B
SYP.DE Yearly EPS VS EstimatesSYP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.11, SYP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SYP indicates a somewhat cheap valuation: SYP is cheaper than 74.51% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. SYP is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.27, the valuation of SYP can be described as expensive.
SYP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYP is cheaper than 64.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. SYP is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 35.11
Fwd PE 27.27
SYP.DE Price Earnings VS Forward Price EarningsSYP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 68.78
EV/EBITDA 44.09
SYP.DE Per share dataSYP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYP has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SYP's earnings are expected to grow with 15.21% in the coming years.
PEG (NY)2.58
PEG (5Y)1.46
EPS Next 2Y14.07%
EPS Next 3Y15.21%

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0

5. Dividend

5.1 Amount

No dividends for SYP!.
Industry RankSector Rank
Dividend Yield N/A

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SYNOPSYS INC

FRA:SYP (6/18/2025, 7:00:00 PM)

412.85

-4.5 (-1.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-28 2025-05-28/amc
Earnings (Next)08-19 2025-08-19/amc
Inst Owners93.45%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap63.83B
Analysts82.96
Price Target522.14 (26.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)5.39%
Min EPS beat(2)4.52%
Max EPS beat(2)6.25%
EPS beat(4)4
Avg EPS beat(4)3.59%
Min EPS beat(4)0.99%
Max EPS beat(4)6.25%
EPS beat(8)7
Avg EPS beat(8)2.64%
EPS beat(12)11
Avg EPS beat(12)2.49%
EPS beat(16)13
Avg EPS beat(16)2.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-5.45%
Revenue beat(16)0
Avg Revenue beat(16)-4.39%
PT rev (1m)-2.83%
PT rev (3m)-14.94%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 35.11
Fwd PE 27.27
P/S 11.81
P/FCF 68.78
P/OCF 59.91
P/B 7.41
P/tB 11.7
EV/EBITDA 44.09
EPS(TTM)11.76
EY2.85%
EPS(NY)15.14
Fwd EY3.67%
FCF(TTM)6
FCFY1.45%
OCF(TTM)6.89
OCFY1.67%
SpS34.96
BVpS55.73
TBVpS35.3
PEG (NY)2.58
PEG (5Y)1.46
Profitability
Industry RankSector Rank
ROA 9.11%
ROE 21.82%
ROCE 6.09%
ROIC 4.28%
ROICexc 12.91%
ROICexgc 26.5%
OM 20.88%
PM (TTM) 34.77%
GM 79.84%
FCFM 17.17%
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%
ROICexcg growth 3Y-16.41%
ROICexcg 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-Score3
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF 9.41
Debt/EBITDA 6.4
Cap/Depr 58.99%
Cap/Sales 2.54%
Interest Coverage 250
Cash Conversion 78.23%
Profit Quality 49.37%
Current Ratio 7.02
Quick Ratio 6.85
Altman-Z 4.93
F-Score3
WACC9.02%
ROIC/WACC0.47
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)7.3%
EPS 3Y25.03%
EPS 5Y23.99%
EPS Q2Q%22.33%
EPS Next Y13.6%
EPS Next 2Y14.07%
EPS Next 3Y15.21%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year10.15%
Revenue Next 2Y11.26%
Revenue Next 3Y11.93%
Revenue Next 5Y11.34%
EBIT growth 1Y-9.11%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.94%
EBIT Next 3Y17.49%
EBIT Next 5YN/A
FCF growth 1Y-5.73%
FCF growth 3Y0.78%
FCF growth 5Y14.95%
OCF growth 1Y-25.73%
OCF growth 3Y-1.95%
OCF growth 5Y11.94%