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Synopsys

Nasdaq:SNPS
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SNPS
Nasdaq
$17B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits (ICs). The last earnings update was 52 days ago. More info.


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  • Synopsys has significant price volatility in the past 3 months.
SNPS Share Price and Events
7 Day Returns
-1.5%
NasdaqGS:SNPS
1%
US Software
0.8%
US Market
1 Year Returns
37.8%
NasdaqGS:SNPS
25.3%
US Software
5.9%
US Market
SNPS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Synopsys (SNPS) -1.5% 6.2% 26.8% 37.8% 136.2% 206.3%
US Software 1% 2.9% 15.8% 25.3% 107.7% 150.5%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • SNPS outperformed the Software industry which returned 25.3% over the past year.
  • SNPS outperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
SNPS
Industry
5yr Volatility vs Market

SNPS Value

 Is Synopsys undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Synopsys to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Synopsys.

NasdaqGS:SNPS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SNPS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (3.12%))
1.113
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.113 * 5.96%)
9.36%

Discounted Cash Flow Calculation for NasdaqGS:SNPS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Synopsys is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SNPS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.36%)
2019 423.00 Analyst x3 386.79
2020 663.23 Analyst x4 554.53
2021 801.00 Analyst x1 612.39
2022 913.15 Est @ 14% 638.37
2023 1,010.12 Est @ 10.62% 645.70
2024 1,093.48 Est @ 8.25% 639.15
2025 1,165.61 Est @ 6.6% 622.98
2026 1,228.97 Est @ 5.44% 600.62
2027 1,285.80 Est @ 4.62% 574.60
2028 1,337.96 Est @ 4.06% 546.72
Present value of next 10 years cash flows $5,821.85
NasdaqGS:SNPS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,337.96 × (1 + 2.73%) ÷ (9.36% – 2.73%)
$20,723.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $20,723.86 ÷ (1 + 9.36%)10
$8,468.21
NasdaqGS:SNPS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,821.85 + $8,468.21
$14,290.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,290.06 / 149.68
$95.47
NasdaqGS:SNPS Discount to Share Price
Calculation Result
Value per share (USD) From above. $95.47
Current discount Discount to share price of $115.98
= -1 x ($115.98 - $95.47) / $95.47
-21.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Synopsys is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Synopsys's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Synopsys's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SNPS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $3.96
NasdaqGS:SNPS Share Price ** NasdaqGS (2019-04-18) in USD $115.98
United States of America Software Industry PE Ratio Median Figure of 82 Publicly-Listed Software Companies 55.7x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Synopsys.

NasdaqGS:SNPS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SNPS Share Price ÷ EPS (both in USD)

= 115.98 ÷ 3.96

29.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synopsys is good value based on earnings compared to the US Software industry average.
  • Synopsys is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Synopsys's expected growth come at a high price?
Raw Data
NasdaqGS:SNPS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
5.9%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.36x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:SNPS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.3x ÷ 5.9%

4.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synopsys is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Synopsys's assets?
Raw Data
NasdaqGS:SNPS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $25.31
NasdaqGS:SNPS Share Price * NasdaqGS (2019-04-18) in USD $115.98
United States of America Software Industry PB Ratio Median Figure of 218 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NasdaqGS:SNPS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SNPS Share Price ÷ Book Value per Share (both in USD)

= 115.98 ÷ 25.31

4.58x

* Primary Listing of Synopsys.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synopsys is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Synopsys's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Synopsys has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SNPS Future Performance

 How is Synopsys expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Synopsys expected to grow at an attractive rate?
  • Synopsys's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Synopsys's earnings growth is positive but not above the United States of America market average.
  • Synopsys's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SNPS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SNPS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 5.9%
NasdaqGS:SNPS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 6.6%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SNPS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SNPS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-10-31
2021-10-31 3,782 1,000 666 3
2020-10-31 3,572 866 510 8
2019-10-31 3,327 698 480 8
NasdaqGS:SNPS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 3,172 339 590
2018-10-31 3,121 424 433
2018-07-31 3,023 478 58
2018-04-30 2,938 469 95
2018-01-31 2,842 529 46
2017-10-31 2,725 635 137
2017-07-31 2,662 597 329
2017-04-30 2,582 569 277
2017-01-31 2,507 669 293
2016-10-31 2,423 587 267
2016-07-31 2,376 591 244
2016-04-30 2,317 615 235

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Synopsys's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Synopsys's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SNPS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Synopsys Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SNPS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-10-31
2021-10-31 4.30 4.30 4.30 1.00
2020-10-31 3.36 3.69 3.02 5.00
2019-10-31 3.15 3.26 3.10 5.00
NasdaqGS:SNPS Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 3.96
2018-10-31 2.90
2018-07-31 0.39
2018-04-30 0.64
2018-01-31 0.31
2017-10-31 0.91
2017-07-31 2.18
2017-04-30 1.84
2017-01-31 1.94
2016-10-31 1.76
2016-07-31 1.59
2016-04-30 1.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Synopsys will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Synopsys's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Synopsys has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SNPS Past Performance

  How has Synopsys performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Synopsys's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Synopsys's year on year earnings growth rate has been positive over the past 5 years.
  • Synopsys's 1-year earnings growth exceeds its 5-year average (1174.1% vs 2.8%)
  • Synopsys's earnings growth has exceeded the US Software industry average in the past year (1174.1% vs 36.6%).
Earnings and Revenue History
Synopsys's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Synopsys Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SNPS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 3,172.03 589.72 868.97 1,091.74
2018-10-31 3,121.06 432.52 859.54 1,084.82
2018-07-31 3,022.62 58.11 840.77 1,038.46
2018-04-30 2,938.29 95.45 802.35 989.72
2018-01-31 2,841.52 46.28 778.00 960.60
2017-10-31 2,724.88 136.56 738.49 908.84
2017-07-31 2,661.96 329.34 700.55 886.28
2017-04-30 2,581.78 277.31 692.56 879.49
2017-01-31 2,506.71 293.38 673.39 872.65
2016-10-31 2,422.53 266.83 668.33 856.71
2016-07-31 2,375.97 243.89 663.99 843.06
2016-04-30 2,316.57 234.56 655.02 819.18
2016-01-31 2,268.77 220.78 654.10 791.32
2015-10-31 2,242.21 225.93 639.50 776.23
2015-07-31 2,194.06 238.63 625.79 758.30
2015-04-30 2,160.07 248.90 614.59 743.11
2015-01-31 2,120.56 256.62 608.39 732.84
2014-10-31 2,057.47 259.12 608.29 718.77
2014-07-31 2,023.34 253.56 599.10 703.45
2014-04-30 1,984.47 240.20 589.28 687.31
2014-01-31 1,966.03 245.57 570.10 679.23
2013-10-31 1,962.21 247.80 569.77 669.20
2013-07-31 1,911.55 219.99 569.06 644.71
2013-04-30 1,872.35 243.35 560.94 625.00
2013-01-31 1,805.66 195.63 583.54 606.26
2012-10-31 1,756.02 182.40 573.09 581.63
2012-07-31 1,692.34 193.26 539.67 556.48
2012-04-30 1,635.39 169.69 525.68 532.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Synopsys has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Synopsys used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • Synopsys has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Synopsys's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Synopsys has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SNPS Health

 How is Synopsys's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Synopsys's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Synopsys's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Synopsys's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Synopsys's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Synopsys Company Filings, last reported 2 months ago.

NasdaqGS:SNPS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 3,784.67 541.87 592.31
2018-10-31 3,485.02 469.30 723.12
2018-07-31 3,164.00 621.56 741.24
2018-04-30 3,260.40 524.35 570.80
2018-01-31 3,140.63 572.14 605.89
2017-10-31 3,279.72 143.99 1,048.36
2017-07-31 3,423.17 435.84 1,302.49
2017-04-30 3,377.50 417.69 1,131.57
2017-01-31 3,324.69 319.54 966.36
2016-10-31 3,195.15 205.00 1,117.32
2016-07-31 3,120.75 277.50 1,089.86
2016-04-30 3,150.01 250.00 959.92
2016-01-31 2,990.38 227.50 705.93
2015-10-31 3,133.99 205.00 964.94
2015-07-31 3,138.25 212.50 1,122.92
2015-04-30 3,065.00 220.00 1,005.42
2015-01-31 2,937.02 302.50 917.06
2014-10-31 3,056.17 75.00 985.76
2014-07-31 2,996.05 82.50 903.05
2014-04-30 2,919.12 290.00 821.63
2014-01-31 2,823.22 97.50 893.05
2013-10-31 2,788.28 105.00 1,022.44
2013-07-31 2,736.13 112.50 892.37
2013-04-30 2,698.93 120.00 681.02
2013-01-31 2,602.16 127.50 550.37
2012-10-31 2,543.97 135.00 700.38
2012-07-31 2,391.10 142.50 963.77
2012-04-30 2,289.98 250.00 796.59
  • Synopsys's level of debt (14.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (3.5% vs 14.3% today).
  • Debt is well covered by operating cash flow (62.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 34.9x coverage).
X
Financial health checks
We assess Synopsys's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Synopsys has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SNPS Dividends

 What is Synopsys's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Synopsys dividends. Estimated to be 0% next year.
If you bought $2,000 of Synopsys shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Synopsys's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Synopsys's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SNPS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SNPS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-10-31 0.00 1.00
2021-10-31 0.00 1.00
2020-10-31 0.00 2.00
2019-10-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Synopsys has not reported any payouts.
  • Unable to verify if Synopsys's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Synopsys's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Synopsys has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Synopsys's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Synopsys's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Synopsys afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Synopsys has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SNPS Management

 What is the CEO of Synopsys's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Aart de Geus
COMPENSATION $7,432,836
AGE 64
TENURE AS CEO 6.9 years
CEO Bio

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 1994 to May 23, 2012. Since December 1986, he has held a variety of positions, including Senior Vice President of Engineering and Senior Vice President of Marketing. He served as the President of Synopsys Inc. from 1992 to 1998. From 1982 to 1986, he was employed by General Electric Corporation, where he was the Manager of the Advanced Computer-Aided Engineering Group. He served as the Chairman and Chief Executive Officer of Logic Modeling Corp. He has been the Chairman of Board at Synopsys Inc. since February 1998. He served as the Chairman of the Board at Silicon Valley Leadership Group. From 1986 to 1992, he served as the Chairman of the Board of Synopsys Inc. He served as the Chairman of the Board at Electronic Design Automation Consortium and also served as its Vice Chairman. He has been a Director of Synopsys Inc. since 1986 and Applied Materials, Inc. since July 24, 2007. He serves as a Director at Electronic Design Automation Consortium. Dr. de Geus has led Synopsys for over 31 years, and is considered a pioneer in the electronic design automation (referred to as EDA in this Proxy Statement) industry. He provides strong executive leadership and vision and maintains a global network of customer and industry relationships. He serves as a Member of the Board of the Silicon Valley Leadership Group, TechNet, and the Fabless Semiconductor Association. Dr. de Geus is active in the community and is well known for his Philanthropic endeavors, particularly in promoting education in math and science. He holds an M.S.E.E. from the Swiss Federal Institute of Technology in Lausanne, Switzerland and a Ph.D. in Electrical Engineering from Southern Methodist University. Dr. de Geus was made a Fellow of the Institute of Electrical and Electronics Engineers in 1999.

CEO Compensation
  • Aart's compensation has been consistent with company performance over the past year.
  • Aart's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Synopsys management team in years:

4
Average Tenure
57.5
Average Age
  • The tenure for the Synopsys management team is about average.
Management Team

Aart de Geus

TITLE
Co-Founder
COMPENSATION
$7M
AGE
64
TENURE
6.9 yrs

Chi-Foon Chan

TITLE
Co-CEO, President & Director
COMPENSATION
$7M
AGE
69
TENURE
6.9 yrs

Trac Pham

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
49
TENURE
4.3 yrs

Rick Runkel

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
62
TENURE
4.9 yrs

Joe Logan

TITLE
Sales & Corporate Marketing Officer
COMPENSATION
$4M
AGE
58
TENURE
1.8 yrs

Sujit Kankanwadi

TITLE
Principal Accounting Officer
AGE
47
TENURE
3.6 yrs

Hasmukh Ranjan

TITLE
Corporate VP & Chief Information Officer
TENURE
1.9 yrs

Lisa Ewbank

TITLE
Vice President of Investor Relations
TENURE
14.3 yrs

Jan Collinson

TITLE
Human Resources & Facilities Officer
AGE
57
TENURE
1.8 yrs

Deirdre Hanford

TITLE
Co-General Manager of Design Group - Corporate Staff
COMPENSATION
$759K
AGE
55
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Synopsys board of directors in years:

9.8
Average Tenure
65
Average Age
  • The tenure for the Synopsys board of directors is about average.
Board of Directors

Aart de Geus

TITLE
Co-Founder
COMPENSATION
$7M
AGE
64
TENURE
21.2 yrs

Chi-Foon Chan

TITLE
Co-CEO, President & Director
COMPENSATION
$7M
AGE
69
TENURE
21.2 yrs

Gary McGraw

TITLE
VP of Security Technology & Chairman of Technical Advisory Board
TENURE
1.3 yrs

John Schwarz

TITLE
Independent Director
COMPENSATION
$300K
AGE
67
TENURE
11.9 yrs

Max Nikias

TITLE
Independent Director
COMPENSATION
$300K
AGE
65
TENURE
7.8 yrs

Mercedes Johnson

TITLE
Independent Director
COMPENSATION
$330K
AGE
64
TENURE
2.2 yrs

Roy Vallee

TITLE
Lead Independent Director
COMPENSATION
$345K
AGE
65
TENURE
2.2 yrs

Steve Walske

TITLE
Independent Director
COMPENSATION
$300K
AGE
66
TENURE
27.3 yrs

Bruce Chizen

TITLE
Independent Director
COMPENSATION
$300K
AGE
63
TENURE
18 yrs

Janice Chaffin

TITLE
Independent Director
COMPENSATION
$315K
AGE
63
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Synopsys insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Apr 19 Sell John Schwarz Individual 11. Apr 19 11. Apr 19 -10,000 $117.61 $-1,176,137
12. Apr 19 Sell Steven Walske Individual 10. Apr 19 10. Apr 19 -2,109 $116.88 $-246,508
28. Feb 19 Sell Sudhindra Kankanwadi Individual 26. Feb 19 26. Feb 19 -596 $102.73 $-61,230
26. Feb 19 Sell Trac Pham Individual 22. Feb 19 25. Feb 19 -10,000 $102.98 $-1,026,006
X
Management checks
We assess Synopsys's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Synopsys has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SNPS News

Simply Wall St News

Why Synopsys, Inc. (NASDAQ:SNPS) Is A Financially Healthy Company

Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … In times of low liquidity in the market, these firms won’t be left high and dry. … Assessing the most recent data for SNPS, I will take you through the key ratios to measure financial health, in particular, its solvency and liquidity.

Simply Wall St -

Introducing Synopsys, The Stock That Zoomed 159% In The Last Five Years

(NASDAQ:SNPS) share price has soared 159% in the last half decade. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … So the EPS growth rate is rather close to the annualized share price gain of 21% per year.

Simply Wall St -

Should You Investigate Synopsys, Inc. (NASDAQ:SNPS) At US$103?

Help shape the future of investing tools and receive a $20 prize! … saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock.

Simply Wall St -

Is There More To Synopsys, Inc. (NASDAQ:SNPS) Than Its 9.9%Returns On Capital?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Did Synopsys, Inc. (NASDAQ:SNPS) Use Debt To Deliver Its ROE Of 12%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Need To Know: Synopsys, Inc. (NASDAQ:SNPS) Insiders Have Been Selling Shares

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … That means that an insider was selling shares at around the current price of US$86.10. … We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price

Simply Wall St -

Do You Like Synopsys, Inc. (NASDAQ:SNPS) At This P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Synopsys has a price to earnings ratio of 28.99, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Are Analysts Expecting From Synopsys Inc (NASDAQ:SNPS) In Next 12 Months?

After Synopsys Inc's (NASDAQ:SNPS) earnings announcement on 31 October 2018, … analyst consensus outlook appear … with earnings expected to decline by -3.6% in the upcoming year.

Simply Wall St -

Does Synopsys Inc's (NASDAQ:SNPS) CEO Salary Reflect Performance?

This analysis aims first to contrast CEO compensation with other large companies. … How Does Aart de Geus's Compensation Compare With Similar Sized Companies. … Our data indicates that Synopsys Inc is worth US$13b, and total annual CEO compensation is US$6.7m

Simply Wall St -

Synopsys Inc (NASDAQ:SNPS)'s Return on Capital

and want a simplistic look at the return on Synopsys Inc (NASDAQ:SNPS) stock. … Therefore, looking at how efficiently Synopsys is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

SNPS Company Info

Description

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits (ICs). It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform, which provides virtual prototyping, static and formal verification, simulation, emulation, field-programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. The company also offers intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating point components, and ARM AMBA interconnect fabric and peripherals. In addition, it provides logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company offers Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it provides testing tools, services, and programs, which include security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate defects in the software development lifecycle; manufacturing solutions for semiconductor manufacturers to develop fabrication processes; and professional and other services. Synopsys, Inc. has collaboration with Palma Ceia SemiDesign, Inc. to provide ready-to-use NB-IoT solution. The company was founded in 1986 and is headquartered in Mountain View, California.

Details
Name: Synopsys, Inc.
SNPS
Exchange: NasdaqGS
Founded: 1986
$17,359,402,067
149,675,824
Website: http://www.synopsys.com
Address: Synopsys, Inc.
690 East Middlefield Road,
Mountain View,
California, 94043,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SNPS Common Stock Nasdaq Global Select US USD 26. Feb 1992
DB SYP Common Stock Deutsche Boerse AG DE EUR 26. Feb 1992
Number of employees
Current staff
Staff numbers
13,245
Synopsys employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:42
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/25
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.