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SNPS

SynopsysNasdaqGS:SNPS Stock Report

Last Price

US$312.14

Market Cap

US$47.9b

7D

-7.8%

1Y

14.2%

Updated

19 Jan, 2022

Data

Company Financials +
SNPS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

SNPS Stock Overview

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits.

Synopsys Competitors

Adobe

NasdaqGS:ADBE

US$245.8b

Autodesk

NasdaqGS:ADSK

US$56.0b

Splunk

NasdaqGS:SPLK

US$18.9b

Nuance Communications

NasdaqGS:NUAN

US$17.4b

Price History & Performance

Summary of all time highs, changes and price drops for Synopsys
Historical stock prices
Current Share PriceUS$312.14
52 Week HighUS$377.60
52 Week LowUS$217.69
Beta1.13
1 Month Change-9.82%
3 Month Change-2.76%
1 Year Change14.16%
3 Year Change246.90%
5 Year Change397.99%
Change since IPO3,863.68%

Recent News & Updates

Dec 30
Returns On Capital Are Showing Encouraging Signs At Synopsys (NASDAQ:SNPS)

Returns On Capital Are Showing Encouraging Signs At Synopsys (NASDAQ:SNPS)

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a...

Dec 20
Estimating The Intrinsic Value Of Synopsys, Inc. (NASDAQ:SNPS)

Estimating The Intrinsic Value Of Synopsys, Inc. (NASDAQ:SNPS)

How far off is Synopsys, Inc. ( NASDAQ:SNPS ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

SNPSUS SoftwareUS Market
7D-7.8%-5.9%-4.6%
1Y14.2%10.2%7.7%

Return vs Industry: SNPS exceeded the US Software industry which returned 12.7% over the past year.

Return vs Market: SNPS exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is SNPS's price volatile compared to industry and market?
SNPS volatility
SNPS Average Weekly Movement5.1%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SNPS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SNPS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198616,361Aart de Geushttps://www.synopsys.com

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that 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. It also provides 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 (SoC) 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.

Synopsys Fundamentals Summary

How do Synopsys's earnings and revenue compare to its market cap?
SNPS fundamental statistics
Market CapUS$47.89b
Earnings (TTM)US$757.52m
Revenue (TTM)US$4.20b

63.2x

P/E Ratio

11.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNPS income statement (TTM)
RevenueUS$4.20b
Cost of RevenueUS$813.32m
Gross ProfitUS$3.39b
ExpensesUS$2.63b
EarningsUS$757.52m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.94
Gross Margin80.65%
Net Profit Margin18.02%
Debt/Equity Ratio1.9%

How did SNPS perform over the long term?

See historical performance and comparison

Valuation

Is Synopsys undervalued compared to its fair value and its price relative to the market?

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNPS ($312.14) is trading below our estimate of fair value ($383.9)

Significantly Below Fair Value: SNPS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SNPS is poor value based on its PE Ratio (63.2x) compared to the US Software industry average (42x).

PE vs Market: SNPS is poor value based on its PE Ratio (63.2x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: SNPS is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: SNPS is overvalued based on its PB Ratio (9x) compared to the US Software industry average (4.8x).


Future Growth

How is Synopsys forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNPS's forecast earnings growth (15.4% per year) is above the savings rate (2%).

Earnings vs Market: SNPS's earnings (15.4% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: SNPS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNPS's revenue (10.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SNPS's revenue (10.7% 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 (19.5%).


Past Performance

How has Synopsys performed over the past 5 years?

28.6%

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%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: SNPS's earnings have grown significantly by 28.6% per year over the past 5 years.

Accelerating Growth: SNPS's earnings growth over the past year (14%) is below its 5-year average (28.6% per year).

Earnings vs Industry: SNPS earnings growth over the past year (14%) underperformed the Software industry 20%.


Return on Equity

High ROE: SNPS's Return on Equity (14.3%) is considered low.


Financial Health

How is Synopsys's financial position?


Financial Position Analysis

Short Term Liabilities: SNPS's short term assets ($2.8B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: SNPS's short term assets ($2.8B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: SNPS has more cash than its total debt.

Reducing Debt: SNPS's debt to equity ratio has reduced from 6.5% to 1.9% over the past 5 years.

Debt Coverage: SNPS's debt is well covered by operating cash flow (1491.3%).

Interest Coverage: SNPS's interest payments on its debt are well covered by EBIT (832.3x coverage).


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Aart de Geus (67 yo)

36yrs

Tenure

US$6,768,566

Compensation

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 ($USD6.77M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Aart's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SNPS's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: SNPS's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Synopsys, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Synopsys, Inc.
  • Ticker: SNPS
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$47.894b
  • Shares outstanding: 153.44m
  • Website: https://www.synopsys.com

Number of Employees


Location

  • Synopsys, Inc.
  • 690 East Middlefield Road
  • Mountain View
  • California
  • 94043
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:31
End of Day Share Price2022/01/19 00:00
Earnings2021/10/31
Annual Earnings2021/10/31


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.