(SNPS) Synopsys - Ratings and Ratios
Design Automation, Design IP, IC Design, Verification, FPGA
SNPS EPS (Earnings per Share)
SNPS Revenue
Description: SNPS Synopsys
Synopsys Inc (NASDAQ:SNPS) is a leading provider of electronic design automation (EDA) software and intellectual property (IP) solutions for the semiconductor industry. The companys products enable the design, verification, and testing of complex integrated circuits (ICs) used in a wide range of applications, from consumer electronics to automotive and industrial systems.
The companys Design Automation segment offers a comprehensive suite of digital and custom IC design solutions, including digital design implementation, verification, and simulation tools. Its Design IP segment provides a broad portfolio of IP solutions, including processor cores, interface IP, and security IP, which are used to accelerate the development of complex system-on-chip (SoC) designs.
From a performance perspective, SNPS has demonstrated strong revenue growth and profitability in recent years, driven by the increasing complexity of IC designs and the growing demand for EDA software and IP solutions. Key performance indicators (KPIs) such as revenue growth rate, operating margin, and return on equity (ROE) are worth monitoring. Notably, SNPS has a ROE of 24.09%, indicating a strong ability to generate profits from shareholder equity. Additionally, the companys high research and development (R&D) expenses as a percentage of revenue (~30%) underscore its commitment to innovation and staying ahead of the curve in the rapidly evolving EDA landscape.
To further evaluate SNPS, its essential to examine its valuation multiples, such as the price-to-earnings (P/E) ratio and enterprise value-to-EBITDA (EV/EBITDA) ratio. With a P/E ratio of 60.41 and a forward P/E ratio of 33.22, SNPS is trading at a premium to its historical average, likely due to its strong growth prospects and dominant position in the EDA market. Investors should also consider the companys cash flow generation, debt levels, and return on invested capital (ROIC) to gain a more comprehensive understanding of its financial health and investment potential.
SNPS Stock Overview
| Market Cap in USD | 79,027m |
| Sub-Industry | Application Software |
| IPO / Inception | 1992-02-26 |
SNPS Stock Ratings
| Growth Rating | 33.3% |
| Fundamental | 67.4% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -28.5% |
| Analyst Rating | 4.55 of 5 |
SNPS Dividends
Currently no dividends paidSNPS Growth Ratios
| Growth Correlation 3m | 21.6% |
| Growth Correlation 12m | 10.7% |
| Growth Correlation 5y | 89.3% |
| CAGR 5y | 10.86% |
| CAGR/Max DD 3y | 0.27 |
| CAGR/Mean DD 3y | 1.61 |
| Sharpe Ratio 12m | 0.27 |
| Alpha | 0.11 |
| Beta | 0.140 |
| Volatility | 37.01% |
| Current Volume | 3082.1k |
| Average Volume 20d | 1389.1k |
| Stop Loss | 403 (-5.3%) |
| Signal | -0.23 |
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) 67.39
| 1. Piotroski 3.50pt = -1.50 |
| 2. FCF Yield 1.43% = 0.72 |
| 3. FCF Margin 20.25% = 5.06 |
| 4. Debt/Equity 0.52 = 2.37 |
| 5. Debt/Ebitda 7.85 = -2.50 |
| 6. ROIC - WACC (= 1.16)% = 1.45 |
| 7. RoE 14.31% = 1.19 |
| 8. Rev. Trend 88.97% = 6.67 |
| 9. EPS Trend 78.54% = 3.93 |
What is the price of SNPS shares?
Over the past week, the price has changed by +9.70%, over one month by -31.97%, over three months by -10.52% and over the past year by -15.30%.
Is Synopsys a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SNPS is around 419.61 USD . This means that SNPS is currently overvalued and has a potential downside of -1.36%.
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 | 571.8 | 34.4% |
| Analysts Target Price | 571.8 | 34.4% |
| ValueRay Target Price | 456.4 | 7.3% |
Last update: 2025-09-14 02:01
SNPS Fundamental Data Overview
CCE Cash And Equivalents = 2.59b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 57.4932
P/E Forward = 31.9489
P/S = 12.2802
P/B = 2.9469
P/EG = 12.4034
Beta = 1.139
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 = 14.47b USD (Calculated: Short Term 149.6m + Long Term 14.32b)
Net Debt = 12.61b USD (from netDebt column, last quarter)
Enterprise Value = 90.90b USD (79.03b + Debt 14.47b - CCE 2.59b)
Interest Coverage Ratio = 5.50 (Ebit TTM 1.47b / Interest Expense TTM 266.4m)
FCF Yield = 1.43% (FCF TTM 1.30b / Enterprise Value 90.90b)
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)
Tobins Q-Ratio = 9.43 (Enterprise Value 90.90b / Book Value Of Equity 9.64b)
Interest Expense / Debt = 1.01% (Interest Expense 146.5m / Debt 14.47b)
Taxrate = 6.59% (99.7m / 1.51b)
NOPAT = 1.37b (EBIT 1.47b * (1 - 6.59%))
Current Ratio = 1.62 (Total Current Assets 5.60b / Total Current Liabilities 3.44b)
Debt / Equity = 0.52 (Debt 14.47b / last Quarter total Stockholder Equity 27.61b)
Debt / EBITDA = 7.85 (Net Debt 12.61b / EBITDA 1.84b)
Debt / FCF = 11.11 (Debt 14.47b / FCF TTM 1.30b)
Total Stockholder Equity = 13.96b (last 4 quarters mean)
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 / (Equity 13.96b + L.T.Debt 14.32b))
RoIC = 6.83% (NOPAT 1.37b / Invested Capital 20.06b)
WACC = 5.67% (E(79.03b)/V(93.49b) * Re(6.53%)) + (D(14.47b)/V(93.49b) * Rd(1.01%) * (1-Tc(0.07)))
Shares Correlation 3-Years: 63.64 | Cagr: 0.34%
Discount Rate = 6.53% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 77.95% ; FCFE base≈1.18b ; Y1≈1.15b ; Y5≈1.17b
Fair Price DCF = 111.9 (DCF Value 20.79b / Shares Outstanding 185.7m; 5y FCF grow -3.26% → 3.0% )
EPS Correlation: 78.54 | EPS CAGR: 23.20% | SUE: -4.0 | # QB: 0
Revenue Correlation: 88.97 | Revenue CAGR: 11.91% | SUE: -0.45 | # QB: 0
Additional Sources for SNPS Stock
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