SNPS Stock Overview
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$303.28|
|52 Week High||US$391.17|
|52 Week Low||US$255.02|
|1 Month Change||-16.51%|
|3 Month Change||-4.47%|
|1 Year Change||-5.80%|
|3 Year Change||122.66%|
|5 Year Change||276.61%|
|Change since IPO||3,751.17%|
Recent News & Updates
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...
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
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
|SNPS||US Software||US Market|
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.
|SNPS Average Weekly Movement||4.0%|
|Software Industry Average Movement||9.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
|1986||16,361||Aart de Geus||https://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
|SNPS fundamental statistics|
Is SNPS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SNPS income statement (TTM)|
|Cost of Revenue||US$955.26m|
Last Reported Earnings
Jul 31, 2022
Next Earnings Date
|Earnings per share (EPS)||6.75|
|Net Profit Margin||20.86%|
How did SNPS perform over the long term?See historical performance and comparison
Is SNPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SNPS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SNPS's PE Ratio compare to its peers?
|SNPS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CDNS Cadence Design Systems
ROP Roper Technologies
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.
|Current PE Ratio||44.9x|
|Fair PE Ratio||38x|
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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How is Synopsys forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
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How has Synopsys performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Synopsys's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
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 ($1.1B).
Debt to Equity History and Analysis
Debt Level: SNPS has more cash than its total debt.
Reducing Debt: SNPS's debt to equity ratio has reduced from 12.6% to 0.4% over the past 5 years.
Debt Coverage: SNPS's debt is well covered by operating cash flow (7814%).
Interest Coverage: SNPS earns more interest than it pays, so coverage of interest payments is not a concern.
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What is Synopsys's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SNPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SNPS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SNPS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SNPS's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as SNPS has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Aart de Geus (68 yo)
Dr. Aart J. de Geus co-founded Synopsys Inc., in December 1986 and has been its Chairman of the Board of Directors and Chief Executive Officer and served as its Co-Chief Executive Officer since May 23, 201...
CEO Compensation Analysis
Compensation vs Market: Aart's total compensation ($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.
Experienced Management: SNPS's management team is seasoned and experienced (5.2 years average tenure).
Experienced Board: SNPS's board of directors are considered experienced (6.7 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
|23 Aug 22||SellUS$3,233,356||Roy Vallee||Individual||9,000||US$359.26|
|22 Aug 22||SellUS$720,000||Mercedes Johnson||Individual||2,000||US$360.00|
|23 Jun 22||SellUS$5,647,275||Trac Pham||Individual||18,393||US$307.41|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Synopsys, Inc.'s employee growth, exchange listings and data sources
- 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
- Synopsys, Inc.
- 690 East Middlefield Road
- Mountain View
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SNPS||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Feb 1992|
|0LBP||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Feb 1992|
|SYP||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 1992|
|SNPS *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Feb 1992|
|SYNP||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Feb 1992|
|S1NP34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 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.