SNPS Stock Analysis: Synopsys | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 89.017m USD | 12M Return: -25.8% | US8716071076 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 626M
EPS Trend: 67.0%
Qual. Beats: 3
Rev. Trend: 91.9%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software and design intellectual property (IP) for the semiconductor and electronics industries, operating through two main segments: Design Automation and Design IP. Its Design Automation offerings span digital and custom IC implementation, verification (including virtual prototyping, simulation, emulation, and FPGA-based prototyping), TCAD and mask synthesis tools, and AI-driven EDA solutions. The Design IP segment supplies pre-verified, silicon-proven logic libraries, embedded memories, processor and security IP, automotive-grade IP, SOC infrastructure blocks, and mathematical/floating-point components, licensed to chip designers for integration into system-on-chip (SoC) designs.
The company maintains a strategic collaboration with Arm Holdings to co-develop an AGI CPU, combining Synopsyss EDA tools, interface IP, and hardware-assisted verification capabilities. Founded in 1986 and headquartered in Sunnyvale, California, Synopsys operates in the highly concentrated EDA market, which historically has been dominated by a small group of vendors whose tools are essential to nearly all advanced chip design flows. Its business model blends recurring software licensing with royalty-based IP agreements, tying revenue closely to global semiconductor design activity and tape-out volumes.
- AI-driven EDA tools boost chip design revenue and margins
- Arm AGI CPU collaboration expands full-stack design IP portfolio
- China EDA export controls pose geopolitical revenue headwind risk
| Net Income: 1.08b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 3.15 > 1.0 |
| NWC/Revenue: 17.78% < 20% (prev 33.43%; Δ -15.65% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.98b > Net Income 1.08b |
| Net Debt (11.8b) to EBITDA (3.53b): 3.35 < 3 |
| Current Ratio: 1.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (192.3m) vs 12m ago 18.95% < -2% |
| Gross Margin: 72.38% > 18% (prev 79.12%; Δ -6.74% > 0.5%) |
| Asset Turnover: 19.63% > 50% (prev 13.34%; Δ 6.28% > 0%) |
| Interest Coverage Ratio: 3.08 > 6 (EBIT TTM 1.92b / Interest Expense TTM 624.1m) |
| A: 0.04 (Total Current Assets 6.64b - Total Current Liabilities 4.97b) / Total Assets 47.7b |
| B: 0.23 (Retained Earnings 10.9b / Total Assets 47.7b) |
| C: 0.04 (EBIT TTM 1.92b / Avg Total Assets 48.0b) |
| D: 1.88 (Book Value of Equity 31.2b / Total Liabilities 16.6b) |
| Altman-Z'' = 3.22 = A |
| DSRI: 0.65 (Receivables 1.32b/1.39b, Revenue 9.42b/6.44b) |
| GMI: 1.09 (GM 79.12% / 72.38%) |
| AQI: 0.97 (AQ_t 0.83 / AQ_t-1 0.86) |
| SGI: 1.46 (Revenue 9.42b / 6.44b) |
| TATA: -0.04 (NI 1.08b - CFO 2.98b) / TA 47.7b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of September 01, 2026, the stock is trading at USD 439.59 with a total of 1,680,672 shares traded. Over the past week, the price has changed by +11.43%, over one month by +13.07%, over three months by -10.71% and over the past year by -25.75%.
Current recommended Stop Loss: 396.70 (which is 9.8% or 2.6 ATR below the current price).
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 | 558.3 | 27% |
P/E Trailing = 80.9913
P/E Forward = 23.753
P/S = 10.2561
P/B = 2.5201
P/EG = 2.2008
Revenue TTM = 9.42b USD
EBIT TTM = 1.92b USD
EBITDA TTM = 3.53b USD
Long Term Debt = 13.5b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.16b USD (from shortTermDebt, last quarter)
Debt = 15.4b USD (corrected: LT Debt 13.5b + ST Debt 1.16b) + Leases 806.0m
Net Debt = 11.8b USD (calculated: Debt 15.4b - CCE 3.61b)
Enterprise Value = 101b USD (89.0b + Debt 15.4b - CCE 3.61b)
Interest Coverage Ratio = 3.08 (Ebit TTM 1.92b / Interest Expense TTM 624.1m)
EV/FCF = 36.14x (Enterprise Value 101b / FCF TTM 2.79b)
FCF Yield = 2.77% (FCF TTM 2.79b / Enterprise Value 101b)
FCF Margin = 29.63% (FCF TTM 2.79b / Revenue TTM 9.42b)
Net Margin = 11.43% (Net Income TTM 1.08b / Revenue TTM 9.42b)
Gross Margin = 72.38% ((Revenue TTM 9.42b - Cost of Revenue TTM 2.60b) / Revenue TTM)
Gross Margin QoQ = 72.57% (prev 72.33%)
Tobins Q-Ratio = 2.11 (Enterprise Value 101b / Total Assets 47.7b)
Interest Expense / Debt = 4.05% (Interest Expense 624.1m / Debt 15.4b)
Taxrate = 17.17% (223.0m / 1.30b)
NOPAT = 1.59b (EBIT 1.92b * (1 - 17.17%))
Current Ratio = 1.34 (Total Current Assets 6.64b / Total Current Liabilities 4.97b)
Debt / Equity = 0.50 (Debt 15.4b / totalStockholderEquity, last quarter 31.2b)
Debt / EBITDA = 3.35 (Net Debt 11.8b / EBITDA 3.53b)
Debt / FCF = 4.24 (Net Debt 11.8b / FCF TTM 2.79b)
Total Stockholder Equity = 30.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.24% (Net Income 1.08b / Total Assets 47.7b)
RoE = 3.57% (Net Income TTM 1.08b / Total Stockholder Equity 30.1b)
RoCE = 4.41% (EBIT 1.92b / Capital Employed (Equity 30.1b + L.T.Debt 13.5b))
RoIC = 3.67% (NOPAT 1.59b / Invested Capital 43.4b)
WACC = 10.44% (E(89.0b)/V(104b) * Re(11.67%) + D(15.4b)/V(104b) * Rd(4.05%) * (1-Tc(0.17)))
Discount Rate = 11.67% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 79.52 | Cagr: 9.82%
[DCF] Terminal Value 71.51% ; FCFF base≈2.19b ; Y1≈2.52b ; Y5≈3.70b
[DCF] Fair Price = 150.7 (EV 40.7b - Net Debt 11.8b = Equity 28.9b / Shares 191.5m; r=10.44% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 67.03 | EPS CAGR: 4.30% | SUE: 0.95 | # QB: 3
Revenue Correlation: 91.90 | Revenue CAGR: 19.14% | SUE: 1.80 | # QB: 2
EPS current Quarter (2027-01-31): EPS=4.31 | Chg30d=-0.06% | Revisions=+13% | Analysts=16
EPS current Year (2026-10-31): EPS=15.12 | Chg30d=+2.20% | Revisions=+88% | GrowthEPS=+17.1% | GrowthRev=+37.3%
EPS next Year (2027-10-31): EPS=17.26 | Chg30d=-0.14% | Revisions=+85% | GrowthEPS=+14.2% | GrowthRev=+10.8%
[Analyst] Revisions Ratio: +76% (up=46, down=5)