SNPS Synopsys, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
While SNPS appears cheaper than hyper-growth peers like Snowflake (no P/E), its valuation remains rich relative to its deteriorating earnings trend, especially compared to Analog Devices (P/E 59.92) with stronger earnings growth (24.6%)
- Forward P/E of 26.22 is below sector average P/E of 155.76, suggesting relative value
- Price/Sales of 11.37 is reasonable for a high-margin software player
- Current P/E of 52.61 is elevated given negative earnings growth
- Lack of EV/EBITDA and ROIC data limits full valuation clarity
Despite solid revenue momentum, the sharp divergence between top-line growth and bottom-line collapse creates uncertainty; price action shows no sign of reversal, with shares down 10.6% in the last month
- Exposure to AI-driven chip design and EDA tools, a structurally growing TAM
- 14% revenue growth suggests continued demand for core products
- Earnings growth of -42.7% YoY and -40.6% Q/Q indicate margin erosion or investment overhang
- Recent price decline of 28.9% over 1Y reflects weak investor confidence in near-term outlook
SNPS has a strong historical track record of execution and margin discipline, but the past two quarters represent a material break from trend, coinciding with broader semiconductor inventory correction and rising R&D costs
- Consistent history of beating earnings estimates, with 23 out of 25 quarters positive surprises prior to recent misses
- Long-term profitability maintained with stable gross margins above 80%
- Last two reported quarters missed estimates by -44.3% and had EPS declines over 55% YoY
- 5Y return of +75.3% masks recent underperformance, with 3Y return at only +16.6% and 1Y down 28.9%
SNPS maintains a healthier leverage profile than peers like TEAM (0.89) and SNOW (1.13), but low returns on equity and assets raise questions about reinvestment efficiency despite solid liquidity
- Debt/Equity of 0.55 is manageable and below sector average of 0.76
- Current and Quick Ratios of 1.62 and 1.40 indicate strong liquidity and low near-term solvency risk
- Missing Total Cash and Total Debt figures limit full assessment of capital structure
- ROE of 6.50% and ROA of 2.31% are weak despite high margins, suggesting inefficient capital deployment
Synopsys does not pay a dividend, which is common among growth software firms, but contrasts with peers like ADI that offer yield and capital return
- No dividend paid, limiting appeal to income-oriented investors
- Payout ratio of 0.00% indicates no current commitment to shareholder yield
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for SNPS and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
SNPS
Synopsys, Inc.
Primary
|
+75.3% | +16.6% | -28.9% | -24.2% | -10.6% | -0.9% |
|
SNOW
Snowflake Inc.
Peer
|
-26.5% | +44.4% | +25.5% | -3.0% | -2.7% | -4.0% |
|
MRVL
Marvell Technology, Inc.
Peer
|
+103.8% | +95.7% | -4.4% | +35.8% | -2.7% | -4.9% |
|
GLW
Corning Incorporated
Peer
|
+154.6% | +161.6% | +78.8% | +72.4% | -4.9% | -3.7% |
|
TEL
TE Connectivity plc
Peer
|
+132.0% | +96.8% | +57.4% | +45.9% | +6.6% | -2.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Technology Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
SNPS
Synopsys, Inc.
|
NEUTRAL | $73.17B | 52.61 | 6.5% | 31.0% | $389.83 | |
|
SNOW
Snowflake Inc.
|
BEARISH | $71.99B | - | -53.1% | -30.8% | $210.38 | |
|
MRVL
Marvell Technology, Inc.
|
NEUTRAL | $75.45B | - | -0.7% | -1.4% | $86.45 | |
|
GLW
Corning Incorporated
|
NEUTRAL | $70.61B | 52.6 | 12.7% | 9.2% | $82.06 | |
|
TEL
TE Connectivity plc
|
BULLISH | $69.82B | 38.47 | 14.6% | 10.7% | $237.33 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-22 | KANKANWADI SUDHINDRA | Officer | Option Exercise | 15,873 | $1,424,760 |
| 2025-09-22 | KANKANWADI SUDHINDRA | Officer | Sale | 15,873 | $7,837,408 |
| 2025-09-11 | PAINTER ROBERT G | Director | Purchase | 350 | $148,904 |
| 2025-09-11 | GOPAL AJEI S | Director | Stock Award | 1,140 | - |
| 2025-09-11 | VIJAYARAGHAVAN RAVI K | Director | Stock Award | 1,140 | - |
| 2025-09-05 | GLASER SHELAGH M | Chief Financial Officer | Option Exercise | 3,655 | $1,279,111 |
| 2025-09-05 | GLASER SHELAGH M | Chief Financial Officer | Sale | 3,655 | $2,228,709 |
| 2025-09-03 | LEE JANET | General Counsel | Stock Award | 293 | - |
| 2025-09-02 | GHAZI SASSINE E | Chief Executive Officer | Option Exercise | 11,366 | $1,020,212 |
| 2025-09-02 | GHAZI SASSINE E | Chief Executive Officer | Sale | 11,366 | $6,694,725 |
| 2025-08-29 | LEE JANET | General Counsel | Stock Award | 700 | - |
| 2025-07-31 | GOPAL AJEI S | Director | Stock Award | 117,256 | - |
| 2025-06-18 | MAHONEY RICHARD S | Officer | Option Exercise | 4,141 | $1,363,825 |
| 2025-06-18 | MAHONEY RICHARD S | Officer | Sale | 9,010 | $4,245,645 |
| 2025-06-13 | MAHONEY RICHARD S | Officer | Stock Award | 7,832 | - |
Wall Street Analysts
Professional analyst ratings and price targets
Past News Coverage
Recent headlines mentioning SNPS from our newsroom.