SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
FRA:SYP - US8716071076 - Common Stock
509 EUR
-3.9 (-0.76%)
We assign a fundamental rating of 6 out of 10 to SYP. SYP was compared to 108 industry peers in the Software industry. While SYP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SYP is valied quite expensively at the moment, while 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.
SYP had positive earnings in each of the past 5 years.
SYP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SYP has a better Return On Assets (9.11%) than 78.70% of its industry peers.
Looking at the Return On Equity, with a value of 21.82%, SYP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
SYP has a Return On Invested Capital of 4.28%. This is comparable to the rest of the industry: SYP outperforms 57.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYP is in line with the industry average of 12.57%.
The last Return On Invested Capital (4.28%) for SYP is well below the 3 year average (11.39%), which needs to be investigated, but indicates that SYP had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of SYP (34.77%) is better than 91.67% of its industry peers.
SYP's Profit Margin has improved in the last couple of years.
SYP has a better Operating Margin (20.88%) than 78.70% of its industry peers.
In the last couple of years the Operating Margin of SYP has grown nicely.
SYP has a Gross Margin of 79.84%. This is in the better half of the industry: SYP outperforms 65.74% of its industry peers.
SYP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
SYP has more shares outstanding than it did 1 year ago.
SYP has more shares outstanding than it did 5 years ago.
SYP has a better debt/assets ratio than last year.
2.2 Solvency
SYP has an Altman-Z score of 6.52. This indicates that SYP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.52, SYP is doing good in the industry, outperforming 74.07% of the companies in the same industry.
The Debt to FCF ratio of SYP is 9.41, which is on the high side as it means it would take SYP, 9.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SYP (9.41) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that SYP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, SYP is doing worse than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 6.52 |
ROIC/WACC0.39
WACC11.12%
2.3 Liquidity
SYP has a Current Ratio of 7.02. This indicates that SYP is financially healthy and has no problem in meeting its short term obligations.
SYP's Current ratio of 7.02 is amongst the best of the industry. SYP outperforms 93.52% 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.
SYP has a Quick ratio of 6.85. This is amongst the best in the industry. SYP outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.30% 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 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
The Earnings Per Share is expected to grow by 12.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.84% on average over the next years. This is quite good.
EPS Next Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue Next Year12.53%
Revenue Next 2Y15.57%
Revenue Next 3Y15.07%
Revenue Next 5Y19.84%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 43.99, SYP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SYP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.06, SYP is valued quite expensively.
SYP is valuated quite expensively with a Price/Forward Earnings ratio of 34.92.
SYP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, SYP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.99 | ||
| Fwd PE | 34.92 |
4.2 Price Multiples
60.19% of the companies in the same industry are cheaper than SYP, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SYP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.15 | ||
| EV/EBITDA | 67.51 |
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.
SYP's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.07
PEG (5Y)1.83
EPS Next 2Y12.85%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
SYP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (9/5/2025, 7:00:00 PM)
509
-3.9 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.52%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap94.19B
Analysts82.86
Price Target558.21 (9.67%)
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)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)6.31%
PT rev (3m)6.91%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.99 | ||
| Fwd PE | 34.92 | ||
| P/S | 17.71 | ||
| P/FCF | 103.15 | ||
| P/OCF | 89.85 | ||
| P/B | 11.11 | ||
| P/tB | 17.54 | ||
| EV/EBITDA | 67.51 |
EPS(TTM)11.57
EY2.27%
EPS(NY)14.58
Fwd EY2.86%
FCF(TTM)4.93
FCFY0.97%
OCF(TTM)5.67
OCFY1.11%
SpS28.74
BVpS45.81
TBVpS29.02
PEG (NY)3.07
PEG (5Y)1.83
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.52 |
F-Score3
WACC11.12%
ROIC/WACC0.39
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 Y14.35%
EPS Next 2Y12.85%
EPS Next 3Y14.49%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year12.53%
Revenue Next 2Y15.57%
Revenue Next 3Y15.07%
Revenue Next 5Y19.84%
EBIT growth 1Y-9.11%
EBIT growth 3Y20.85%
EBIT growth 5Y19.81%
EBIT Next Year20.89%
EBIT Next 3Y19.4%
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%