SYNOPSYS INC (SYP.DE) Stock Fundamental Analysis
FRA:SYP - Deutsche Boerse Ag - US8716071076 - Common Stock - Currency: EUR
SYP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 industry peers in the Software industry. While SYP has a great profitability rating, there are some minor 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.
In the past year SYP had a positive cash flow from operations.
SYP had positive earnings in each of the past 5 years.
In the past 5 years SYP always reported a positive cash flow from operatings.
1.2 Ratios
SYP's Return On Assets of 9.11% is amongst the best of the industry. SYP outperforms 85.86% of its industry peers.
The Return On Equity of SYP (21.82%) is better than 85.86% of its industry peers.
SYP has a Return On Invested Capital (4.28%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SYP is in line with the industry average of 10.83%.
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 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
SYP has a better Profit Margin (34.77%) than 95.96% 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 80.81% of the companies in the same industry.
In the last couple of years the Operating Margin of SYP has grown nicely.
With a decent Gross Margin value of 79.84%, SYP is doing good in the industry, outperforming 70.71% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYP is creating some value.
Compared to 1 year ago, SYP has more shares outstanding
Compared to 5 years ago, SYP has more shares outstanding
SYP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.50 indicates that SYP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.50, SYP is doing good in the industry, outperforming 68.69% of the companies in the same industry.
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.
SYP's Debt to FCF ratio of 9.41 is in line compared to the rest of the industry. SYP outperforms 51.52% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that SYP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.01, SYP is not doing good in the industry: 76.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 9.41 | ||
| Altman-Z | 5.5 |
ROIC/WACC0.4
WACC10.76%
2.3 Liquidity
A Current Ratio of 7.02 indicates that SYP has no problem at all paying its short term obligations.
SYP has a better Current ratio (7.02) than 93.94% of its industry peers.
A Quick Ratio of 6.85 indicates that SYP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 6.85, SYP belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.02 | ||
| Quick Ratio | 6.85 |
3. Growth
3.1 Past
SYP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.30%.
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.
Looking at the last year, SYP shows a small growth in Revenue. The Revenue has grown by 7.50% in the last 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.
Based on estimates for the next years, SYP will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.
EPS Next Y15.2%
EPS Next 2Y13.13%
EPS Next 3Y14.53%
EPS Next 5Y12.72%
Revenue Next Year10.42%
Revenue Next 2Y11.33%
Revenue Next 3Y11.96%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.28, which means the current valuation is very expensive for SYP.
68.69% of the companies in the same industry are more expensive than SYP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.51. SYP is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 32.58, which means the current valuation is very expensive for SYP.
61.62% of the companies in the same industry are more expensive than SYP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYP to the average of the S&P500 Index (35.58), we can say SYP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.28 | ||
| Fwd PE | 32.58 |
4.2 Price Multiples
SYP's Enterprise Value to EBITDA is on the same level as the industry average.
SYP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.12 | ||
| EV/EBITDA | 52.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SYP may justify a higher PE ratio.
A more expensive valuation may be justified as SYP's earnings are expected to grow with 14.53% in the coming years.
PEG (NY)2.72
PEG (5Y)1.72
EPS Next 2Y13.13%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
No dividends for SYP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SYP (7/14/2025, 7:00:00 PM)
477.65
-9.85 (-2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap74.11B
Analysts82.96
Price Target520.75 (9.02%)
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)-0.27%
PT rev (3m)-10.83%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.28 | ||
| Fwd PE | 32.58 | ||
| P/S | 13.93 | ||
| P/FCF | 81.12 | ||
| P/OCF | 70.66 | ||
| P/B | 8.74 | ||
| P/tB | 13.79 | ||
| EV/EBITDA | 52.5 |
EPS(TTM)11.57
EY2.42%
EPS(NY)14.66
Fwd EY3.07%
FCF(TTM)5.89
FCFY1.23%
OCF(TTM)6.76
OCFY1.42%
SpS34.3
BVpS54.67
TBVpS34.63
PEG (NY)2.72
PEG (5Y)1.72
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 | 5.5 |
F-Score3
WACC10.76%
ROIC/WACC0.4
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 Y15.2%
EPS Next 2Y13.13%
EPS Next 3Y14.53%
EPS Next 5Y12.72%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y13.38%
Revenue growth 5Y12.76%
Sales Q2Q%10.28%
Revenue Next Year10.42%
Revenue Next 2Y11.33%
Revenue Next 3Y11.96%
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%