(SNPS) Synopsys - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 86.911m USD | Total Return: -2.9% in 12m
Avg Turnover: 1,000M
EPS Trend: 1.2%
Qual. Beats: 1
Rev. Trend: 92.1%
Qual. Beats: 1
Warnings
P/E ratio 104.1
Share dilution 22.7% YoY
Beneish M-Score -1.24 > -1.5 - likely earnings manipulation
Fakeout Choppy Below Avwap Earnings
Tailwinds
Confidence
Synopsys Inc. (SNPS) is a leader in electronic design automation (EDA) and semiconductor intellectual property (IP). The company operates through two primary segments: Design Automation, which focuses on digital and custom integrated circuit (IC) implementation, and Design IP, which provides pre-verified building blocks for system-on-chip (SoC) development. Its portfolio includes AI-driven EDA tools, verification solutions, and specialized IP for sectors such as automotive and security.
The EDA industry functions as a critical bottleneck in the semiconductor supply chain, as modern chip complexity makes automated software tools essential for hardware production. Synopsys utilizes a research-intensive business model, often forming strategic partnerships with foundries and processor architects-such as its collaboration with Arm Holdings-to ensure its software remains compatible with the latest manufacturing nodes.
Investors can further examine these industry dynamics and valuation metrics on ValueRay. Synopsys remains headquartered in Sunnyvale, California, serving as a foundational provider for the global electronics and semiconductor markets.
- AI-driven EDA tool adoption accelerates recurring subscription revenue growth
- Semiconductor design complexity increases demand for high-value intellectual property
- Proliferation of custom silicon and hyperscaler chips expands total addressable market
- Integration of Ansys acquisition improves full-stack simulation and analysis capabilities
- Geopolitical export restrictions on advanced chip design software impact long-term growth.
| Net Income: 773.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.14 > 1.0 |
| NWC/Revenue: 18.97% < 20% (prev 232.6%; Δ -213.7% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.84b > Net Income 773.0m |
| Net Debt (9.16b) to EBITDA (2.71b): 3.38 < 3 |
| Current Ratio: 1.43 > 1.5 & < 3 |
| Outstanding Shares: last quarter (191.6m) vs 12m ago 22.74% < -2% |
| Gross Margin: 73.47% > 18% (prev 79.84%; Δ -6.37% > 0.5%) |
| Asset Turnover: 24.57% > 50% (prev 26.19%; Δ -1.62% > 0%) |
| Interest Coverage Ratio: 2.26 > 6 (EBIT TTM 1.44b / Interest Expense TTM 637.3m) |
| A: 0.04 (Total Current Assets 5.44b - Total Current Liabilities 3.79b) / Total Assets 46.9b |
| B: 0.22 (Retained Earnings 10.4b / Total Assets 46.9b) |
| C: 0.04 (EBIT TTM 1.44b / Avg Total Assets 35.3b) |
| D: 1.86 (Book Value of Equity 30.5b / Total Liabilities 16.4b) |
| Altman-Z'' = 3.18 = A |
| DSRI: 0.91 (Receivables 1.27b/1.00b, Revenue 8.68b/6.22b) |
| GMI: 1.09 (GM 79.84% / 73.47%) |
| AQI: 3.55 (AQ_t 0.85 / AQ_t-1 0.24) |
| SGI: 1.40 (Revenue 8.68b / 6.22b) |
| TATA: -0.04 (NI 773.0m - CFO 2.84b) / TA 46.9b) |
| Beneish M = -1.24 (Cap -4..+1) = D |
As of June 19, 2026, the stock is trading at USD 455.51 with a total of 2,883,072 shares traded.
Over the past week, the price has changed by +0.26%,
over one month by -7.36%,
over three months by +7.56% and
over the past year by -2.87%.
Synopsys has received a consensus analysts rating of 4.24. Therefore, it is recommended to buy SNPS.
- StrongBuy: 15
- Buy: 2
- Hold: 7
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 560.4 | 23% |
P/E Trailing = 104.1032
P/E Forward = 31.0559
P/S = 10.0135
P/B = 2.8516
P/EG = 2.8795
Revenue TTM = 8.68b USD
EBIT TTM = 1.44b USD
EBITDA TTM = 2.71b USD
Long Term Debt = 10.0b USD (from longTermDebt, last quarter)
Short Term Debt = 157.6m USD (from shortTermDebt, last quarter)
Debt = 11.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 806.0m
Net Debt = 9.16b USD (calculated: Debt 11.6b - CCE 2.48b)
Enterprise Value = 96.1b USD (86.9b + Debt 11.6b - CCE 2.48b)
Interest Coverage Ratio = 2.26 (Ebit TTM 1.44b / Interest Expense TTM 637.3m)
EV/FCF = 35.90x (Enterprise Value 96.1b / FCF TTM 2.68b)
FCF Yield = 2.79% (FCF TTM 2.68b / Enterprise Value 96.1b)
FCF Margin = 30.83% (FCF TTM 2.68b / Revenue TTM 8.68b)
Net Margin = 8.91% (Net Income TTM 773.0m / Revenue TTM 8.68b)
Gross Margin = 73.47% ((Revenue TTM 8.68b - Cost of Revenue TTM 2.30b) / Revenue TTM)
Gross Margin QoQ = 72.33% (prev 73.54%)
Tobins Q-Ratio = 2.05 (Enterprise Value 96.1b / Total Assets 46.9b)
Interest Expense / Debt = 5.47% (Interest Expense 637.3m / Debt 11.6b)
Taxrate = 3.96% (31.8m / 804.2m)
NOPAT = 1.38b (EBIT 1.44b * (1 - 3.96%))
Current Ratio = 1.43 (Total Current Assets 5.44b / Total Current Liabilities 3.79b)
Debt / Equity = 0.38 (Debt 11.6b / totalStockholderEquity, last quarter 30.5b)
Debt / EBITDA = 3.38 (Net Debt 9.16b / EBITDA 2.71b)
Debt / FCF = 3.42 (Net Debt 9.16b / FCF TTM 2.68b)
Total Stockholder Equity = 29.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.19% (Net Income 773.0m / Total Assets 46.9b)
RoE = 2.64% (Net Income TTM 773.0m / Total Stockholder Equity 29.2b)
RoCE = 3.67% (EBIT 1.44b / Capital Employed (Equity 29.2b + L.T.Debt 10.0b))
RoIC = 3.23% (NOPAT 1.38b / Invested Capital 42.8b)
WACC = 11.34% (E(86.9b)/V(98.6b) * Re(12.16%) + D(11.6b)/V(98.6b) * Rd(5.47%) * (1-Tc(0.04)))
Discount Rate = 12.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.81 | Cagr: 9.77%
[DCF] Terminal Value 68.92% ; FCFF base≈2.04b ; Y1≈2.34b ; Y5≈3.44b
[DCF] Fair Price = 128.7 (EV 33.8b - Net Debt 9.16b = Equity 24.7b / Shares 191.5m; r=11.34% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 1.25 | EPS CAGR: 0.17% | SUE: 0.98 | # QB: 1
Revenue Correlation: 92.05 | Revenue CAGR: 16.13% | SUE: 0.87 | # QB: 1
EPS current Quarter (2026-07-31): EPS=3.67 | Chg30d=N/A | Revisions=+5% | Analysts=17
EPS current Year (2026-10-31): EPS=14.79 | Chg30d=+2.27% | Revisions=+84% | GrowthEPS=+14.5% | GrowthRev=+37.2%
EPS next Year (2027-10-31): EPS=17.25 | Chg30d=+1.13% | Revisions=+82% | GrowthEPS=+16.6% | GrowthRev=+10.7%
[Analyst] Revisions Ratio: +84%