SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SYP - US8716071076 - Common Stock
359.05 EUR
+8.45 (+2.41%)
Taking everything into account, SYP scores 4 out of 10 in our fundamental rating. SYP was compared to 116 industry peers in the Software industry. SYP has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, SYP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SYP was profitable.
SYP had a positive operating cash flow in the past year.
Each year in the past 5 years SYP has been profitable.
In the past 5 years SYP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.14%, SYP perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
SYP has a Return On Equity of 7.23%. This is comparable to the rest of the industry: SYP outperforms 50.00% of its industry peers.
SYP has a Return On Invested Capital of 1.74%. This is comparable to the rest of the industry: SYP outperforms 47.41% 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 13.28%.
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
With an excellent Profit Margin value of 31.04%, SYP belongs to the best of the industry, outperforming 88.79% of the companies in the same industry.
In the last couple of years the Profit Margin of SYP has grown nicely.
The Operating Margin of SYP (17.16%) is better than 68.10% 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 65.52% of its industry peers.
SYP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYP is creating some value.
The number of shares outstanding for SYP has been increased compared to 1 year ago.
Compared to 5 years ago, SYP has more shares outstanding
The debt/assets ratio for SYP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that SYP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SYP's Altman-Z score of 2.79 is in line compared to the rest of the industry. SYP outperforms 51.72% of its industry peers.
SYP has a Debt/Equity ratio of 0.52. This is a neutral value indicating SYP is somewhat dependend on debt financing.
The Debt to Equity ratio of SYP (0.52) is worse than 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.16
WACC11%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SYP should not have too much problems paying its short term obligations.
SYP's Current ratio of 1.62 is fine compared to the rest of the industry. SYP outperforms 62.07% of its industry peers.
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.
SYP has a Quick ratio of 1.51. This is comparable to the rest of the industry: SYP outperforms 59.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.51% over the past year.
The Earnings Per Share has been growing by 23.99% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, SYP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.59% on average per year.
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-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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
The Price/Earnings ratio is 30.79, which means the current valuation is very expensive for SYP.
SYP's Price/Earnings ratio is a bit cheaper when compared to the industry. SYP is cheaper than 67.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of SYP to the average of the S&P500 Index (26.31), we can say SYP is valued inline with the index average.
With a Price/Forward Earnings ratio of 28.90, SYP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as SYP.
The average S&P500 Price/Forward Earnings ratio is at 36.56. SYP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 28.9 |
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 64.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 62.09 |
4.3 Compensation for Growth
The decent profitability rating of SYP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y3.59%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
No dividends for SYP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (11/28/2025, 7:00:00 PM)
359.05
+8.45 (+2.41%)
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 Cap66.69B
Revenue(TTM)6.44B
Net Income(TTM)2.00B
Analysts77.93
Price Target495.29 (37.94%)
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)1.74%
PT rev (3m)-11.27%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 28.9 | ||
| P/S | 11.99 | ||
| P/FCF | N/A | ||
| P/OCF | 53.51 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 62.09 |
EPS(TTM)11.66
EY3.25%
EPS(NY)12.42
Fwd EY3.46%
FCF(TTM)-71.58
FCFYN/A
OCF(TTM)6.71
OCFY1.87%
SpS29.95
BVpS128.54
TBVpS-57.77
PEG (NY)N/A
PEG (5Y)1.28
Graham Number183.63
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 | 2.79 |
F-Score2
WACC11%
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-2.17%
EPS Next 2Y3.59%
EPS Next 3Y9.87%
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 2 / 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 30.79 and the Price/Book (PB) ratio is 2.79.