Synopsys, Inc.
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers…
What to know about SNPS
Synopsys, Inc. is a large Technology company with a mixed financial profile. It scores well on size and dividends, but valuation is worth keeping an eye on.
Should you consider SNPS?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Synopsys, Inc. is a large-cap Technology company with a mixed overall financial profile — it sits in the upper half of Technology stocks (40 of 82).
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Profit margins are thin compared to most S&P 500 peers — the company keeps less of each dollar it earns than the average. Watch for signs of margin improvement.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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Analyst sentiment is broadly positive and short interest is low — professionals who cover this stock are mostly optimistic about its near-term prospects.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Technology sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how SNPS compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 104.71 | Below avg |
| Forward P/E | 26.41 | Below avg |
| PEG Ratio | 2.84 | Below avg |
| Price to Sales | 10.05 | Below avg |
| Price to Book | 2.86 | Above avg |
| EV/EBITDA | 55.54 | Below avg |
| Earnings Yield | 0.95% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 82.60% | Top 25% |
| Operating Margin | 10.38% | Below avg |
| Net Profit Margin | 8.91% | Average |
| Return on Equity | 3.82% | Below avg |
| Return on Invested Capital | 1.49% | Below avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 41.90% | Top 25% |
| Revenue Growth (3Y CAGR) | 15.19% | Top 25% |
| EPS Growth (YoY) | -96.00% | Below avg |
| Free Cash Flow Growth | 6.44% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.43 | Above avg |
| Debt to Equity | 0.36 | Top 25% |
| Interest Coverage | 4.12 | Average |
| Altman Z-Score | 3.26 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | 0.00% | Top 25% |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 3.02% | Average |
| OCF to Sales | 32.22% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.21 | Average |
| Volatility (30-Day) | 40.82% | Average |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 2.96% | Above avg |
| Avg. Analyst Rating | 1.76 | Above avg |
| Target Upside % | 23.02% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 87.22B | Above avg |
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