Synopsys (SNPS) Stock Analysis
This is a peer-relative look at Synopsys (SNPS): its performance, risk, profitability, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | SNPS |
|---|---|
| Name | Synopsys, Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Application Software |
| Market Capitalization | 87.00 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | February 26, 1992 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Performance Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| Total Return (1Y) | -8.34% | -19.31% |
Risk Profile
Drawdown History
Risk Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 56.75% | 58.77% |
| Beta (5Y) | 1.22 | 1.14 |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Synopsys (SNPS) posts ROE of 3.82%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
SNPS
Software & Services industry group
3.82%
Group distribution
- Max
- 53.38%
- Q3
- 16.53%
- Median
- 5.38%
- SNPS
- 3.82%
- Q1
- -13.43%
- Min
- -55.27%
Largest peers
- ORCL
- 53.38%
- IBM
- 35.77%
- MSFT
- 34.01%
- PLTR
- 32.59%
- SAP
- 16.35%
- PANW
- 4.83%
- SNPS
- 3.82%
Net Margin (TTM)
Synopsys (SNPS) keeps 8.91% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
SNPS
Software & Services industry group
8.91%
Group distribution
- Max
- 44.20%
- Q3
- 14.93%
- SNPS
- 8.91%
- Median
- 3.32%
- Q1
- -5.99%
- Min
- -34.99%
Largest peers
- PLTR
- 43.67%
- MSFT
- 39.34%
- ORCL
- 25.37%
- SAP
- 19.58%
- IBM
- 15.61%
- SNPS
- 8.91%
- PANW
- 7.95%
Operating Margin (TTM)
Synopsys (SNPS) turns 10.38% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
SNPS
Software & Services industry group
10.38%
Group distribution
- Max
- 60.45%
- Q3
- 16.49%
- SNPS
- 10.38%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -53.94%
Largest peers
- MSFT
- 46.33%
- PLTR
- 46.18%
- ORCL
- 36.20%
- SAP
- 30.03%
- IBM
- 13.81%
- SNPS
- 10.38%
- PANW
- -2.47%
Profitability Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| ROE (TTM) | 3.82% | 5.38% |
| ROA (TTM) | 1.49% | 1.63% |
| Net Margin (TTM) | 8.91% | 3.32% |
| Operating Margin (TTM) | 10.38% | 4.46% |
| Gross Margin (TTM) | 82.60% | 68.69% |
Financial Strength
Current Ratio (MRQ)
Synopsys (SNPS) has current ratio of 1.43, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
SNPS
Software & Services industry group
1.43
Group distribution
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.72
- SNPS
- 1.43
- Q1
- 1.07
- Min
- 0.03
Largest peers
- PLTR
- 6.91
- SNPS
- 1.43
- MSFT
- 1.28
- ORCL
- 1.12
- SAP
- 1.07
- PANW
- 0.86
- IBM
- 0.80
Debt / Equity (MRQ)
Synopsys (SNPS) has debt-to-equity ratio of 0.36, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
SNPS
Software & Services industry group
0.36
Group distribution
- Max
- 2.31
- Q3
- 1.06
- SNPS
- 0.36
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
Largest peers
- ORCL
- 3.89
- IBM
- 2.11
- SNPS
- 0.36
- MSFT
- 0.30
- SAP
- 0.17
- PANW
- 0.08
- PLTR
- 0.02
Financial Strength Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.43 | 1.72 |
| Debt / Equity (MRQ) | 0.36 | 0.32 |
| Net Debt / EBITDA | 4.93 | -0.09 |
Dividends
Dividend Yield (TTM)
Synopsys (SNPS) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
SNPS
Software & Services industry group
0.00%
Group distribution
- SNPS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 2.60%
- SAP
- 1.69%
- ORCL
- 1.31%
- MSFT
- 1.01%
- SNPS
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Payout Ratio (TTM)
Synopsys (SNPS) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
SNPS
Software & Services industry group
0.00%
Group distribution
- SNPS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 59.47%
- SAP
- 37.15%
- ORCL
- 34.31%
- MSFT
- 20.73%
- SNPS
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Synopsys (SNPS) trades at P/E ratio of 104.21, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
SNPS
Software & Services industry group
104.21
Group distribution
- Max
- 114.57
- SNPS
- 104.21
- Q3
- 59.78
- Median
- 29.42
- Q1
- 16.20
- Min
- 0.40
Largest peers
- PANW
- 266.84
- PLTR
- 126.89
- SNPS
- 104.21
- ORCL
- 25.43
- IBM
- 24.04
- MSFT
- 22.23
- SAP
- 21.87
P/S Ratio (TTM)
Synopsys (SNPS) trades at 10.02 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
SNPS
Software & Services industry group
10.02
Group distribution
- Max
- 17.86
- SNPS
- 10.02
- Q3
- 8.79
- Median
- 4.10
- Q1
- 2.13
- Min
- 0.03
Largest peers
- PLTR
- 51.82
- PANW
- 23.37
- SNPS
- 10.02
- MSFT
- 8.71
- ORCL
- 6.35
- SAP
- 4.90
- IBM
- 3.70
P/B Ratio (MRQ)
Synopsys (SNPS) trades at 2.85 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
SNPS
Software & Services industry group
2.85
Group distribution
- Max
- 17.72
- Q3
- 8.62
- Median
- 3.82
- SNPS
- 2.85
- Q1
- 1.97
- Min
- -7.65
Largest peers
- PLTR
- 32.04
- ORCL
- 12.73
- PANW
- 8.94
- IBM
- 7.74
- MSFT
- 6.69
- SAP
- 3.47
- SNPS
- 2.85
Valuation Metrics
| Metric | Current stock: SNPS | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 104.21 | 29.42 |
| P/S Ratio (TTM) | 10.02 | 4.10 |
| P/B Ratio (MRQ) | 2.85 | 3.82 |
| Free Cash Flow Yield (TTM) | 4.07% | 4.53% |