Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. More Details
Flawless balance sheet with acceptable track record.
Share Price & News
How has Synopsys's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SNPS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SNPS's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SNPS exceeded the US Software industry which returned 42.9% over the past year.
Return vs Market: SNPS exceeded the US Market which returned 33.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Synopsys's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StA Look At The Intrinsic Value Of Synopsys, Inc. (NASDAQ:SNPS)
2 weeks ago | Simply Wall StThis Insider Has Just Sold Shares In Synopsys, Inc. (NASDAQ:SNPS)
2 weeks ago | Simply Wall StIs Synopsys, Inc.'s (NASDAQ:SNPS) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Is Synopsys undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SNPS ($325.54) is trading above our estimate of fair value ($316.44)
Significantly Below Fair Value: SNPS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SNPS is poor value based on its PE Ratio (65.9x) compared to the US Software industry average (55.9x).
PE vs Market: SNPS is poor value based on its PE Ratio (65.9x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: SNPS is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: SNPS is overvalued based on its PB Ratio (9.6x) compared to the US Software industry average (7.6x).
How is Synopsys forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SNPS's forecast earnings growth (14.4% per year) is above the savings rate (2%).
Earnings vs Market: SNPS's earnings (14.4% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: SNPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: SNPS's revenue (9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: SNPS's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SNPS's Return on Equity is forecast to be low in 3 years time (16%).
How has Synopsys performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SNPS has high quality earnings.
Growing Profit Margin: SNPS's current net profit margins (18.5%) are higher than last year (17.9%).
Past Earnings Growth Analysis
Earnings Trend: SNPS's earnings have grown significantly by 28.8% per year over the past 5 years.
Accelerating Growth: SNPS's earnings growth over the past year (20.1%) is below its 5-year average (28.8% per year).
Earnings vs Industry: SNPS earnings growth over the past year (20.1%) underperformed the Software industry 22.1%.
Return on Equity
High ROE: SNPS's Return on Equity (14.6%) is considered low.
How is Synopsys's financial position?
Financial Position Analysis
Short Term Liabilities: SNPS's short term assets ($2.8B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: SNPS's short term assets ($2.8B) exceed its long term liabilities ($996.1M).
Debt to Equity History and Analysis
Debt Level: SNPS's debt to equity ratio (2.1%) is considered satisfactory.
Reducing Debt: SNPS's debt to equity ratio has reduced from 8.9% to 2.1% over the past 5 years.
Debt Coverage: SNPS's debt is well covered by operating cash flow (1235%).
Interest Coverage: SNPS's interest payments on its debt are well covered by EBIT (622.2x coverage).
What is Synopsys's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SNPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SNPS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SNPS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SNPS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SNPS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Aart de Geus (67 yo)
Dr. Aart J. de Geus co-founded Synopsys Inc., in December 1986 and has been its Co-Chief Executive Officer since May 23, 2012. Dr. de Geus served as the Chief Executive Officer of Synopsys from January 199...
CEO Compensation Analysis
Compensation vs Market: Aart's total compensation ($USD6.77M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Aart's compensation has been consistent with company performance over the past year.
Experienced Management: SNPS's management team is seasoned and experienced (6.2 years average tenure).
Experienced Board: SNPS's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SNPS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Synopsys, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Synopsys, Inc.
- Ticker: SNPS
- Exchange: NasdaqGS
- Founded: 1986
- Industry: Application Software
- Sector: Software
- Market Cap: US$49.646b
- Shares outstanding: 152.50m
- Website: https://www.synopsys.com
Number of Employees
- Synopsys, Inc.
- 690 East Middlefield Road
- Mountain View
- United States
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It offers Fusion Design Platform, a digital design implementation solution; Verification...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.