(SNPS) Synopsys - Overview
Stock: EDA Software, Verification Platforms, Design IP, TCAD Tools
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 43.6% |
| Relative Tail Risk | -8.86% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.15 |
| Alpha | -39.01 |
| Character TTM | |
|---|---|
| Beta | 1.360 |
| Beta Downside | 1.303 |
| Drawdowns 3y | |
|---|---|
| Max DD | 40.53% |
| CAGR/Max DD | 0.15 |
Description: SNPS Synopsys January 27, 2026
Synopsys Inc. (NASDAQ: SNPS) delivers electronic-design-automation (EDA) software and semiconductor design-IP across two primary segments: Design Automation-covering digital and custom IC design, verification, FPGA prototyping, TCAD, mask synthesis, and AI-driven tools; and Design IP-offering pre-verified silicon-proven logic libraries, embedded memories, processors, security blocks, automotive-grade IP, and data-path components. The firm, founded in 1986 and based in Sunnyvale, California, serves the broader semiconductor and electronics ecosystem.
According to the most recent FY 2024 Q3 earnings release (ended Sept 30 2024), Synopsys reported revenue of **$1.85 billion**, up **9 % YoY**, with Design Automation contributing roughly **68 %** of total sales and posting a 10 % growth rate driven by heightened demand for AI-accelerated chip design. The company’s GAAP operating margin expanded to **30 %**, reflecting cost-discipline and higher-margin IP licensing.
Key macro drivers underpinning Synopsys’s outlook include: (1) the **global semiconductor market’s projected CAGR of 5-6 % through 2028**, buoyed by AI, data-center, and automotive electrification trends; (2) **rising adoption of AI-enabled EDA tools**, which promise productivity gains and have become a differentiator in a market where the top three EDA vendors collectively hold ~70 % share; and (3) **supply-chain constraints easing**, allowing chip designers to accelerate tape-out cycles and increase IP spend.
For a deeper quantitative assessment, you might explore ValueRay’s analyst platform.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 1.33b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -7.02 > 1.0 |
| NWC/Revenue: 32.46% < 20% (prev 62.34%; Δ -29.88% < -1%) |
| CFO/TA 0.03 > 3% & CFO 1.52b > Net Income 1.33b |
| Net Debt (11.41b) to EBITDA (2.50b): 4.56 < 3 |
| Current Ratio: 1.62 > 1.5 & < 3 |
| Outstanding Shares: last quarter (161.7m) vs 12m ago 3.65% < -2% |
| Gross Margin: 76.98% > 18% (prev 0.80%; Δ 7619 % > 0.5%) |
| Asset Turnover: 23.02% > 50% (prev 46.87%; Δ -23.85% > 0%) |
| Interest Coverage Ratio: 4.12 > 6 (EBITDA TTM 2.50b / Interest Expense TTM 446.3m) |
Altman Z'' 1.94
| A: 0.05 (Total Current Assets 6.01b - Total Current Liabilities 3.72b) / Total Assets 48.22b |
| B: 0.21 (Retained Earnings 10.32b / Total Assets 48.22b) |
| C: 0.06 (EBIT TTM 1.84b / Avg Total Assets 30.65b) |
| D: 0.51 (Book Value of Equity 10.08b / Total Liabilities 19.90b) |
| Altman-Z'' Score: 1.94 = BBB |
Beneish M -1.96
| DSRI: 1.40 (Receivables 1.51b/934.5m, Revenue 7.05b/6.13b) |
| GMI: 1.03 (GM 76.98% / 79.68%) |
| AQI: 2.02 (AQ_t 0.85 / AQ_t-1 0.42) |
| SGI: 1.15 (Revenue 7.05b / 6.13b) |
| TATA: -0.00 (NI 1.33b - CFO 1.52b) / TA 48.22b) |
| Beneish M-Score: -1.96 (Cap -4..+1) = B |
What is the price of SNPS shares?
Over the past week, the price has changed by -8.22%, over one month by -16.10%, over three months by +7.76% and over the past year by -19.94%.
Is SNPS a buy, sell or hold?
- StrongBuy: 15
- Buy: 4
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the SNPS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 555.7 | 30.2% |
| Analysts Target Price | 555.7 | 30.2% |
| ValueRay Target Price | 443.3 | 3.8% |
SNPS Fundamental Data Overview February 04, 2026
P/E Forward = 32.3625
P/S = 12.4186
P/B = 3.1413
P/EG = 2.92
Revenue TTM = 7.05b USD
EBIT TTM = 1.84b USD
EBITDA TTM = 2.50b USD
Long Term Debt = 13.46b USD (from longTermDebt, last quarter)
Short Term Debt = 150.3m USD (from shortTermDebt, last quarter)
Debt = 14.29b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 11.41b USD (from netDebt column, last quarter)
Enterprise Value = 98.94b USD (87.60b + Debt 14.29b - CCE 2.96b)
Interest Coverage Ratio = 4.12 (Ebit TTM 1.84b / Interest Expense TTM 446.3m)
EV/FCF = 73.33x (Enterprise Value 98.94b / FCF TTM 1.35b)
FCF Yield = 1.36% (FCF TTM 1.35b / Enterprise Value 98.94b)
FCF Margin = 19.13% (FCF TTM 1.35b / Revenue TTM 7.05b)
Net Margin = 18.89% (Net Income TTM 1.33b / Revenue TTM 7.05b)
Gross Margin = 76.98% ((Revenue TTM 7.05b - Cost of Revenue TTM 1.62b) / Revenue TTM)
Gross Margin QoQ = 70.97% (prev 78.13%)
Tobins Q-Ratio = 2.05 (Enterprise Value 98.94b / Total Assets 48.22b)
Interest Expense / Debt = 1.36% (Interest Expense 194.8m / Debt 14.29b)
Taxrate = 13.18% (68.1m / 516.5m)
NOPAT = 1.60b (EBIT 1.84b * (1 - 13.18%))
Current Ratio = 1.62 (Total Current Assets 6.01b / Total Current Liabilities 3.72b)
Debt / Equity = 0.50 (Debt 14.29b / totalStockholderEquity, last quarter 28.33b)
Debt / EBITDA = 4.56 (Net Debt 11.41b / EBITDA 2.50b)
Debt / FCF = 8.45 (Net Debt 11.41b / FCF TTM 1.35b)
Total Stockholder Equity = 18.79b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.35% (Net Income 1.33b / Total Assets 48.22b)
RoE = 7.09% (Net Income TTM 1.33b / Total Stockholder Equity 18.79b)
RoCE = 5.70% (EBIT 1.84b / Capital Employed (Equity 18.79b + L.T.Debt 13.46b))
RoIC = 5.65% (NOPAT 1.60b / Invested Capital 28.26b)
WACC = 9.55% (E(87.60b)/V(101.90b) * Re(10.92%) + D(14.29b)/V(101.90b) * Rd(1.36%) * (1-Tc(0.13)))
Discount Rate = 10.92% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.18%
[DCF Debug] Terminal Value 72.21% ; FCFF base≈1.32b ; Y1≈1.29b ; Y5≈1.31b
Fair Price DCF = 33.16 (EV 17.75b - Net Debt 11.41b = Equity 6.35b / Shares 191.3m; r=9.55% [WACC]; 5y FCF grow -3.26% → 2.90% )
EPS Correlation: -14.72 | EPS CAGR: -45.10% | SUE: -4.0 | # QB: 0
Revenue Correlation: 85.63 | Revenue CAGR: 16.54% | SUE: 0.06 | # QB: 0
EPS next Quarter (2026-04-30): EPS=3.08 | Chg30d=+0.001 | Revisions Net=+1 | Analysts=17
EPS current Year (2026-10-31): EPS=14.38 | Chg30d=-0.003 | Revisions Net=-1 | Growth EPS=+11.4% | Growth Revenue=+36.6%
EPS next Year (2027-10-31): EPS=16.89 | Chg30d=-0.049 | Revisions Net=-2 | Growth EPS=+17.4% | Growth Revenue=+10.4%