(SNPS) Synopsys - Ratings and Ratios
EDA, Verification, IP, FPGA, TCAD
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 36.6% |
| Value at Risk 5%th | 53.5% |
| Relative Tail Risk | -11.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.34 |
| Alpha | -43.49 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.416 |
| Beta | 1.365 |
| Beta Downside | 1.238 |
| Drawdowns 3y | |
|---|---|
| Max DD | 40.53% |
| Mean DD | 11.32% |
| Median DD | 7.63% |
Description: SNPS Synopsys September 25, 2025
Synopsys Inc. (NASDAQ: SNPS) delivers electronic design automation (EDA) software that enables the design and verification of integrated circuits (ICs) across a full stack of digital, custom, and system-level solutions. Its product portfolio is split into two operating segments: Design Automation – covering digital implementation, verification (including static, formal, simulation, emulation, and FPGA-based prototyping), TCAD, mask synthesis, and AI-enhanced tools – and Design IP – supplying reusable silicon intellectual property such as UCIe, USB, PCI Express, DDR, Ethernet, MIPI, HDMI, processor cores, security blocks, automotive-grade IP, and SoC infrastructure components.
Key financial metrics from the most recent fiscal year (FY 2024) show total revenue of $5.8 billion, a 9 % year-over-year increase driven largely by higher demand for AI-focused EDA tools and expanding IP licensing, with GAAP earnings per share of $5.30 and a gross margin of 78 %. R&D expenditures remain high at roughly 30 % of revenue, reflecting the capital-intensive nature of maintaining technology leadership in a market where the top three EDA vendors collectively hold about 70 % of total spend.
Macro-level drivers that shape Synopsys’ outlook include the ongoing semiconductor fab capacity expansion, the acceleration of AI-accelerator chip designs, and the shift toward heterogeneous integration (e.g., chiplet-based architectures) that raises the relevance of standardized IP such as UCIe and high-speed interconnects. Conversely, a slowdown in consumer electronics cycles or a prolonged downturn in fab utilization could compress IP licensing revenues.
Investors seeking a data-driven assessment of Synopsys’ valuation and risk profile may find it useful to explore the detailed analyst models available on ValueRay for a deeper quantitative comparison.
SNPS Stock Overview
| Market Cap in USD | 72,487m |
| Sub-Industry | Application Software |
| IPO / Inception | 1992-02-26 |
| Return 12m vs S&P 500 | -38.1% |
| Analyst Rating | 4.55 of 5 |
SNPS Dividends
Currently no dividends paidSNPS Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 5.73% |
| CAGR/Max DD Calmar Ratio | 0.14 |
| CAGR/Mean DD Pain Ratio | 0.51 |
| Current Volume | 1796.2k |
| Average Volume | 1898.9k |
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income (2.00b TTM) > 0 and > 6% of Revenue (6% = 385.8m TTM) |
| FCFTA 0.03 (>2.0%) and ΔFCFTA -5.87pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 33.46% (prev 43.51%; Δ -10.05pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.03 (>3.0%) and CFO 1.44b <= Net Income 2.00b (YES >=105%, WARN >=100%) |
| Net Debt (12.61b) to EBITDA (1.84b) ratio: 6.84 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.62 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (161.7m) change vs 12m ago 3.56% (target <= -2.0% for YES) |
| Gross Margin 77.74% (prev 77.35%; Δ 0.39pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 21.48% (prev 51.16%; Δ -29.68pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.50 (EBITDA TTM 1.84b / Interest Expense TTM 266.4m) >= 6 (WARN >= 3) |
Altman Z'' 1.78
| (A) 0.04 = (Total Current Assets 5.60b - Total Current Liabilities 3.44b) / Total Assets 48.23b |
| (B) 0.20 = Retained Earnings (Balance) 9.87b / Total Assets 48.23b |
| (C) 0.05 = EBIT TTM 1.47b / Avg Total Assets 29.94b |
| (D) 0.47 = Book Value of Equity 9.64b / Total Liabilities 20.62b |
| Total Rating: 1.78 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 60.36
| 1. Piotroski 3.50pt |
| 2. FCF Yield 1.53% |
| 3. FCF Margin 20.25% |
| 4. Debt/Equity 0.55 |
| 5. Debt/Ebitda 6.84 |
| 6. ROIC - WACC (= 0.00)% |
| 7. RoE 14.31% |
| 8. Rev. Trend 88.97% |
| 9. EPS Trend -33.90% |
What is the price of SNPS shares?
Over the past week, the price has changed by -0.48%, over one month by -14.85%, over three months by -34.95% and over the past year by -30.88%.
Is SNPS a buy, sell or hold?
- Strong Buy: 15
- Buy: 4
- Hold: 3
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the SNPS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 556.4 | 43.3% |
| Analysts Target Price | 556.4 | 43.3% |
| ValueRay Target Price | 359.8 | -7.3% |
SNPS Fundamental Data Overview November 19, 2025
P/E Trailing = 52.664
P/E Forward = 26.3852
P/S = 11.2639
P/B = 2.6222
P/EG = 5.1115
Beta = 1.146
Revenue TTM = 6.43b USD
EBIT TTM = 1.47b USD
EBITDA TTM = 1.84b USD
Long Term Debt = 14.32b USD (from longTermDebt, last quarter)
Short Term Debt = 149.6m USD (from shortTermDebt, last quarter)
Debt = 15.14b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 12.61b USD (from netDebt column, last quarter)
Enterprise Value = 85.03b USD (72.49b + Debt 15.14b - CCE 2.59b)
Interest Coverage Ratio = 5.50 (Ebit TTM 1.47b / Interest Expense TTM 266.4m)
FCF Yield = 1.53% (FCF TTM 1.30b / Enterprise Value 85.03b)
FCF Margin = 20.25% (FCF TTM 1.30b / Revenue TTM 6.43b)
Net Margin = 31.07% (Net Income TTM 2.00b / Revenue TTM 6.43b)
Gross Margin = 77.74% ((Revenue TTM 6.43b - Cost of Revenue TTM 1.43b) / Revenue TTM)
Gross Margin QoQ = 78.13% (prev 80.14%)
Tobins Q-Ratio = 1.76 (Enterprise Value 85.03b / Total Assets 48.23b)
Interest Expense / Debt = 0.97% (Interest Expense 146.5m / Debt 15.14b)
Taxrate = -27.98% (negative due to tax credits) (-53.0m / 189.3m)
NOPAT = 1.88b (EBIT 1.47b * (1 - -27.98%)) [negative tax rate / tax credits]
Current Ratio = 1.62 (Total Current Assets 5.60b / Total Current Liabilities 3.44b)
Debt / Equity = 0.55 (Debt 15.14b / totalStockholderEquity, last quarter 27.61b)
Debt / EBITDA = 6.84 (Net Debt 12.61b / EBITDA 1.84b)
Debt / FCF = 9.69 (Net Debt 12.61b / FCF TTM 1.30b)
Total Stockholder Equity = 13.96b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.14% (Net Income 2.00b / Total Assets 48.23b)
RoE = 14.31% (Net Income TTM 2.00b / Total Stockholder Equity 13.96b)
RoCE = 5.18% (EBIT 1.47b / Capital Employed (Equity 13.96b + L.T.Debt 14.32b))
RoIC = 9.35% (NOPAT 1.88b / Invested Capital 20.06b)
WACC = 9.35% (E(72.49b)/V(87.63b) * Re(11.04%) + D(15.14b)/V(87.63b) * Rd(0.97%) * (1-Tc(-0.28)))
Discount Rate = 11.04% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.18%
[DCF Debug] Terminal Value 67.66% ; FCFE base≈1.18b ; Y1≈1.15b ; Y5≈1.17b
Fair Price DCF = 70.66 (DCF Value 13.12b / Shares Outstanding 185.7m; 5y FCF grow -3.26% → 3.0% )
EPS Correlation: -33.90 | EPS CAGR: -55.82% | SUE: -4.0 | # QB: 0
Revenue Correlation: 88.97 | Revenue CAGR: 11.91% | SUE: -0.16 | # QB: 0
Additional Sources for SNPS Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle