(SNPS) Synopsys - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 87.127m USD | Total Return: -8.3% in 12m
Avg Turnover: 999M
EPS Trend: 1.2%
Qual. Beats: 1
Rev. Trend: 92.1%
Qual. Beats: 1
Warnings
P/E ratio 104.4
Share dilution 22.7% YoY
Beneish M-Score -1.24 > -1.5 - likely earnings manipulation
Tailwinds
Seasonality
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: 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 28, 2026, the stock is trading at USD 454.34 with a total of 3,996,450 shares traded. Over the past week, the price has changed by -0.26%, over one month by -15.01%, over three months by +13.03% and over the past year by -8.34%.
Current recommended Stop Loss: 431.20 (which is 5.1% or 1.2 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 | 563.7 | 24.1% |
P/E Trailing = 104.3624
P/E Forward = 31.746
P/S = 10.0384
P/B = 2.9146
P/EG = 2.9432
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 = 96.3b USD (87.1b + Debt 11.6b - CCE 2.48b)
Interest Coverage Ratio = 2.26 (Ebit TTM 1.44b / Interest Expense TTM 637.3m)
EV/FCF = 35.98x (Enterprise Value 96.3b / FCF TTM 2.68b)
FCF Yield = 2.78% (FCF TTM 2.68b / Enterprise Value 96.3b)
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 96.3b / 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 = 11.32% (E(87.1b)/V(98.8b) * Re(12.13%) + D(11.6b)/V(98.8b) * Rd(5.47%) * (1-Tc(0.04)))
Discount Rate = 12.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.81 | Cagr: 9.77%
[DCF] Terminal Value 68.99% ; FCFF base≈2.04b ; Y1≈2.34b ; Y5≈3.44b
[DCF] Fair Price = 129.3 (EV 33.9b - Net Debt 9.16b = Equity 24.7b / Shares 191.5m; r=11.32% [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=+1.27% | Revisions=+5% | Analysts=16
EPS current Year (2026-10-31): EPS=14.79 | Chg30d=+2.35% | Revisions=+84% | GrowthEPS=+14.6% | GrowthRev=+37.2%
EPS next Year (2027-10-31): EPS=17.26 | Chg30d=+1.21% | Revisions=+82% | GrowthEPS=+16.7% | GrowthRev=+10.8%
[Analyst] Revisions Ratio: +84%