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SNPS

Synopsys NasdaqGS:SNPS Stock Report

Last Price

US$303.28

Market Cap

US$46.4b

7D

-3.5%

1Y

-5.8%

Updated

24 Sep, 2022

Data

Company Financials +
SNPS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Synopsys
Historical stock prices
Current Share PriceUS$303.28
52 Week HighUS$391.17
52 Week LowUS$255.02
Beta1.23
1 Month Change-16.51%
3 Month Change-4.47%
1 Year Change-5.80%
3 Year Change122.66%
5 Year Change276.61%
Change since IPO3,751.17%

Recent News & Updates

Sep 16
Does Synopsys (NASDAQ:SNPS) Deserve A Spot On Your Watchlist?

Does Synopsys (NASDAQ:SNPS) Deserve A Spot On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Sep 01

Synopsys board increases size of stock repurchase program

The board of Synopsys (NASDAQ:SNPS) increased the size of a stock repurchase program to purchase up to $1.5B of shares. The software company also said it is not obligated to acquire any particular amount of shares, and the program may be suspended or terminated at any time. The company had initiated $240M stock buyback in August. Shares were trading -1.18% pre-market. Source: Press Release

Aug 25

Synopsys initiates $240M stock buyback with Bank of America

Synopsys (NASDAQ:SNPS) on Thursday has signed an accelerated share repurchase deal with Bank of America, National Association to buyback total of $240M worth shares. Under the terms, Synopsys will receive an aggregate initial share delivery of ~535,000 of its shares, with the remainder, if any, to be settled by Nov. 18, 2022, upon completion of buyback. Earlier: Synopsys Non-GAAP EPS of $2.10 beats by $0.11, revenue of $1.25B, guidance above estimates

Shareholder Returns

SNPSUS SoftwareUS Market
7D-3.5%-4.4%-5.2%
1Y-5.8%-35.3%-23.0%

Return vs Industry: SNPS exceeded the US Software industry which returned -35.3% over the past year.

Return vs Market: SNPS exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is SNPS's price volatile compared to industry and market?
SNPS volatility
SNPS Average Weekly Movement4.0%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SNPS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SNPS's weekly volatility (4%) 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$46.37b
Earnings (TTM)US$1.03b
Revenue (TTM)US$4.95b

44.9x

P/E Ratio

9.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNPS income statement (TTM)
RevenueUS$4.95b
Cost of RevenueUS$955.26m
Gross ProfitUS$3.99b
Other ExpensesUS$2.96b
EarningsUS$1.03b

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.75
Gross Margin80.70%
Net Profit Margin20.86%
Debt/Equity Ratio0.4%

How did SNPS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SNPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNPS?

Other financial metrics that can be useful for relative valuation.

SNPS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.2x
Enterprise Value/EBITDA34.3x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does SNPS's PE Ratio compare to its peers?

SNPS PE Ratio vs Peers
The above table shows the PE ratio for SNPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average52.8x
CDNS Cadence Design Systems
56.9x16.7%US$44.1b
ADSK Autodesk
71.4x23.4%US$39.8b
ROP Roper Technologies
39.4x12.9%US$40.1b
ANSS ANSYS
43.6x14.5%US$20.0b
SNPS Synopsys
44.9x13.6%US$46.4b

Price-To-Earnings vs Peers: SNPS is good value based on its Price-To-Earnings Ratio (44.9x) compared to the peer average (52.8x).


Price to Earnings Ratio vs Industry

How does SNPS's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: SNPS is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the US Software industry average (39.4x)


Price to Earnings Ratio vs Fair Ratio

What is SNPS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNPS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.9x
Fair PE Ratio38x

Price-To-Earnings vs Fair Ratio: SNPS is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the estimated Fair Price-To-Earnings Ratio (38x).


Share Price vs Fair Value

What is the Fair Price of SNPS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNPS ($303.28) is trading below our estimate of fair value ($315.71)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Synopsys forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNPS's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).

Earnings vs Market: SNPS's earnings (13.6% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: SNPS's revenue (10.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SNPS's revenue (10.8% 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 high in 3 years time (23.5%)


Discover growth companies

Past Performance

How has Synopsys performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNPS has high quality earnings.

Growing Profit Margin: SNPS's current net profit margins (20.9%) are higher than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: SNPS's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: SNPS's earnings growth over the past year (37%) exceeds its 5-year average (30.9% per year).

Earnings vs Industry: SNPS earnings growth over the past year (37%) exceeded the Software industry 18.3%.


Return on Equity

High ROE: SNPS's Return on Equity (18.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Synopsys's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNPS's short term assets ($2.9B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: SNPS's short term assets ($2.9B) exceed its long term liabilities ($1.1B).


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 12.6% to 0.4% over the past 5 years.

Debt Coverage: SNPS's debt is well covered by operating cash flow (7814%).

Interest Coverage: SNPS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SNPS has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure


CEO

Aart de Geus (68 yo)

36.67yrs

Tenure

US$9,974,985

Compensation

Dr. Aart J. de Geus co-founded Synopsys Inc., in December 1986 and has been its Chairman of the Board of Directors and Chief Executive Officer and served as its Co-Chief Executive Officer since May 23, 201...


CEO Compensation Analysis

Compensation vs Market: Aart's total compensation ($USD9.97M) is about average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Aart's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SNPS's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: SNPS's board of directors are considered experienced (6.7 years average tenure).


Ownership

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

NasdaqGS:SNPS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 Aug 22SellUS$3,233,356Roy ValleeIndividual9,000US$359.26
22 Aug 22SellUS$720,000Mercedes JohnsonIndividual2,000US$360.00
23 Jun 22SellUS$5,647,275Trac PhamIndividual18,393US$307.41

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 57.92% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.46%
The Vanguard Group, Inc.
17,522,592$5.3b0.98%0.12%
8.74%
BlackRock, Inc.
13,369,642$4.1b-1.21%0.1%
7.23%
T. Rowe Price Group, Inc.
11,053,415$3.4b-2.33%0.4%
3.99%
State Street Global Advisors, Inc.
6,099,521$1.8b-3.25%0.1%
2.45%
J.P. Morgan Asset Management, Inc.
3,752,439$1.1b4.51%0.21%
2.31%
Franklin Resources, Inc.
3,529,991$1.1b0.05%0.46%
2%
Geode Capital Management, LLC
3,052,093$925.6m1.14%0.12%
1.98%
Pictet Asset Management Limited
3,022,590$916.7m-13.25%0.82%
1.73%
FMR LLC
2,648,990$803.4m-8.66%0.08%
1.71%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,622,311$795.3m11.51%0.27%
1.46%
Invesco Ltd.
2,236,345$678.2m17.05%0.23%
1.42%
Massachusetts Financial Services Company
2,176,750$660.2m6.86%0.17%
1.42%
Columbia Management Investment Advisers, LLC
2,175,608$659.8m-1.82%0.2%
1.19%
Alkeon Capital Management, LLC
1,812,232$549.6m-10.57%4.53%
1.11%
Northern Trust Global Investments
1,692,428$513.3m-1.06%0.11%
0.92%
Legal & General Investment Management Limited
1,414,418$429.0m-1.18%0.13%
0.92%
Swedbank Robur Fonder AB
1,403,919$425.8m-29.51%0.7%
0.91%
Norges Bank Investment Management
1,398,284$424.1m0%0.06%
0.85%
BNY Mellon Asset Management
1,297,831$393.6m0.71%0.09%
0.78%
Nordea Investment Management AB
1,186,674$359.9m16.6%0.32%
0.77%
Janus Henderson Group plc
1,181,400$358.3m-2.04%0.2%
0.69%
UBS Asset Management
1,057,438$320.7m-6.35%0.06%
0.67%
Goldman Sachs Asset Management, L.P.
1,018,942$309.0m48.95%0.13%
0.61%
Eagle Asset Management, Inc.
933,017$283.0m5.17%1.8%
0.59%
Van Eck Associates Corporation
909,337$275.8m-7.58%0.57%

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$46.375b
  • Shares outstanding: 152.91m
  • Website: https://www.synopsys.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNPSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1992
0LBPLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1992
SYPDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1992
SNPS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1992
SYNPWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1992
S1NP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/07/31
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.