Stock Analysis
Synopsys IncSNPS
P/E 80.93×· 5Y range 28.20–132.44×· top 8% of history
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsStrong Buy32 analystsP/E 80.9× sits at the 92nd percentile of its 5.089664613278576-year history.
Cash covers 22% of debt · Q1 2026.
PMP Verdict
High quality, but expensive
Strengths
- Growth85
- Quality80
Risks
- Valuation24
- Profitability42
Excellent business. Weak entry price.
Market context
-2.9% today· Z 1.3σ
Bull Case
- ✓Altman Z 3.5 — safe-zone balance sheet
- ✓Revenue CAGR 13.8% — durable top-line growth
- ✓Interest coverage 8.9× — debt well covered
What's happening with SNPS
Profile
Strong growth, moat and earnings quality; valuation and profitability lag behind.
How is each axis scored?
- Valuation24/100 · Weak
- P/E vs own history (92th pct)0/25
- FCF yield (3.2%)12/25
- P/S (9.2x)12/25
- EV/EBIT (117.8x)0/25
- Growth85/100 · Strong
- Revenue CAGR (13.8%)20/25
- Net income CAGR (15.2%)20/25
- EPS CAGR 5Y (13.7%)20/25
- Fwd implied growth (242.6%)25/25
- Profitability42/100 · Weak
- ROIC (1.7%)5/25
- ROE (3.5%)5/25
- Net margin (11.4%)20/25
- Operating margin (8.5%)12/25
- Financial Health67/100 · Moderate
- Altman Z (3.51)25/25
- Current ratio (1.36)12/25
- Interest coverage (8.9x)18/25
- Net cash / debt (D/A 17%)12/25
- Quality80/100 · Strong
- Piotroski F (3/9)5/25
- Beneish M (-5.14)25/25
- FCF conversion (255%)25/25
- Margin stability (σ 4.8%)25/25
- Moat81/100 · Strong
- ROIC >12% years (5/10 yrs)13/25
- Median gross margin (78.0%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 5.0%)18/25
Risk Flags
- ⚠SBC 10.1% of revenue — real dilution cost
- ⚠P/E 80.9× at top 8% of 5-year history
About Synopsys Inc
Synopsys is a provider of electronic design automation software and intellectual property products. Show more
EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.
Headquarters: SUNNYVALE, CA · Employees: 28,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
24EP/E (TTM)80.5xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 28.2x–132.4x · 92nd pct
P/FCF32.2xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.2%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.1%–3.9% · 88th pct
P/S (TTM)9.21xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 7.5x–16.2x · 6th pct
EV/EBIT117.8xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 35.5x–180.2x · 95th pct
EV/Sales10.1xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E23.5xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.84xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio3.83D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
42D+ROIC1.7%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE3.5%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA2.3%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin11.4%A
Grade A: HighNet Income / Revenue
Operating Margin8.5%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin72.4%A
Grade A: PremiumGross Profit / Revenue
FCF Margin29.2%A
Grade A: HighFCF / Revenue
True FCF Margin19.1%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
85ARevenue CAGR13.8%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR15.2%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)13.7%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth242.6%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+21.9%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income88.2%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue10.1%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
67BAltman Z-Score3.51A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.36xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.25xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage8.9xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment2.8yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT9.7xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity0.33xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.22xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
80APiotroski F-Score3/9D
Grade D: WeakFinancial strength 0–9. >7 Strong
Beneish M-Score-5.14A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion255.2%A
Grade A: StrongFCF / Net Income
Margin Stability4.8%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue2.0%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.20xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
LEE JANET Filed | LEE JANET | SellOpen market sale | -560 | |
LEE JANET Filed | LEE JANET | SellOpen market sale | -584 | |
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | Option exercise | -9170 | |
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | SellOpen market sale | -9170 | |
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | Option exercise | +9.2K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | Option exercise | -3000 | |
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | SellOpen market sale | -3000 | |
Kankanwadi Sudhindra Filed | Kankanwadi Sudhindra | Option exercise | +3.0K |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
81AROIC >12% Years5/10 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)78.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor5.0%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$5.62
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$18.83
Cash & short-term investments per share (Finnhub)
Book Value / Share$162.59
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$10.02B
Total debt obligations (short + long term)
Cash & Equiv.$2.20B
Cash and short-term investments
Net Debt$7.82B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$30.55B
Shareholders' equity (book value)
Asset / Liability2.83xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$86.71B
Current Market Capitalization
Beta1.22C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jul 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Synopsys Inc (SNPS)
SNPS is down 2.88% at the last close. Synopsys Inc meets only 3 of 9 Piotroski F-Score criteria — a sign of weak underlying fundamentals. Altman Z-Score of 3.51 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -5.14 suggests a low likelihood of earnings manipulation.
- Synopsys Inc converts about 29% of revenue into free cash flow — strong cash generation.
- Takes ~2.8 years to repay net debt from free cash flow.
- At a valuation score of 24/100, SNPS trades at a premium to its historical multiples (P/E 80.5).
See how SNPS ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all SNPS moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 1 | Pre-market | 459.50 | +5.65% | 2.02 |
| Oct 1 | Regular | 491.71 | +13.05% | 4.64 |
| Sep 30 | Regular | 435.80 | +4.99% | 2.05 |
| Sep 30 | After-hours | 440.00 | +6.00% | 2.46 |
Frequently Asked Questions about SNPS
What is the current Synopsys Inc (SNPS) stock price?
SNPS is trading at $454.63 at the last market close, down 2.88% on the session. PreMarketPrice tracks SNPS pre-market, intraday and after-hours prices.
Is SNPS stock a buy right now?
PreMarketPrice's quantitative model rates Synopsys Inc's financial health at 67/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is SNPS stock overvalued?
Synopsys Inc trades at a trailing P/E of 80.5 and our valuation score rates it 24/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Synopsys Inc report earnings?
No confirmed earnings date is currently scheduled for SNPS. The Earnings section lists recent reports and updates as dates are announced.
What sector does Synopsys Inc operate in?
Synopsys Inc operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does Synopsys Inc do?
Synopsys is a provider of electronic design automation software and intellectual property products.
About Synopsys Inc (SNPS) Stock
Synopsys Inc (SNPS) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, Synopsys Inc is trading at $454.63, down 2.88% on the day with a market capitalization of $86.7 billion. The financial health score for SNPS is 67/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for SNPS stock.
SNPS Stock Analysis & Key Metrics
On PreMarketPrice, you can track Synopsys Inc (SNPS) across multiple dimensions:
- Pre-market price & movement: Real-time SNPS stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for SNPS with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Synopsys Inc across multiple reporting periods.
- Financial health score: A composite score of 67/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for SNPS.
- Sector peers: Compare SNPS against 6 other technology stocks on key financial metrics.
Is SNPS a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Synopsys Inc (SNPS) as an investment. The financial health score of 67/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Synopsys Inc (SNPS) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.