A Business at a Glance
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Company and Segment Overview Synopsys, Inc. (Synopsys, we, our or us) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver trusted and comprehensive solutions spanning silicon design, silicon intellectual property (IP), simulation and analysis (S&A) as well as design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. We are a global leader in supplying the mission-critical EDA solutions that engineers use to design and test integrated circuits (ICs), also known as chips or silicon, and we are pioneering artificial intelligence (AI) driven chip design across the full-stack EDA suite to improve efficiency and accelerate the design, verification testing and manufacturing of advanced digital and analog chips.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.0B | 7.1B | 6.1B | 5.8B | 5.1B | 4.2B |
| Net Income | 1.1B | 1.3B | 2.3B | 1.2B | 985M | 758M |
| EPS | $6.49 | $8.04 | $14.51 | $7.92 | $6.29 | $4.81 |
| Free Cash Flow | 2.3B | 1.3B | 1.3B | 1.5B | 1.6B | 1.4B |
| ROIC | 2.1% | 3.9% | 22.5% | 22.6% | 22.1% | 15.5% |
| Gross Margin | 75.1% | 77.0% | 79.7% | 66.9% | 79.1% | 79.5% |
| Debt/Equity | 0.33 | 0.51 | 0.08 | 0.11 | 0.12 | 0.14 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 866M | 915M | 1.4B | 1.3B | 1.2B | 735M |
| Operating Margin | 10.8% | 13.0% | 22.1% | 21.8% | 22.9% | 17.5% |
| ROE | 3.6% | 7.1% | 25.2% | 20.0% | 17.9% | 14.3% |
| Shares Outstanding | 192M | 166M | 156M | 155M | 157M | 157M |
SYNOPSYS INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
SYNOPSYS INC trades at 64.4x trailing earnings, compared to its 15-year median P/E of 49.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 35.1x vs a median of 38.6x. The company's 5-year average ROIC is 17.3% with a gross margin of 76.4%. At current prices, the estimated annualized return to fair value is +17.4%.
SYNOPSYS INC (SNPS) has a current P/E ratio of 64.4, compared to its historical median P/E of 49.0. The stock is currently considered Fair based on its historical valuation range.
SYNOPSYS INC (SNPS) has a 5-year average return on invested capital (ROIC) of 17.3%. This indicates strong capital allocation and a potential competitive advantage.
SYNOPSYS INC (SNPS) has a market capitalization of $80.0B. It is classified as a large-cap stock.
SYNOPSYS INC (SNPS) does not currently pay a regular dividend.
Based on historical P/E analysis, SYNOPSYS INC (SNPS) appears fair. The current P/E of 64.4 is 31% above its historical median of 49.0. The estimated fair value CAGR (P/E method) is 22.8%.
SYNOPSYS INC (SNPS) operates in the Services-Prepackaged Software industry, within the Technology sector.
SYNOPSYS INC (SNPS) reported annual revenue of $7.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
SYNOPSYS INC (SNPS) has a net profit margin of 18.9%. This is a healthy margin.
SYNOPSYS INC (SNPS) generated $1.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SYNOPSYS INC (SNPS) has a debt-to-equity ratio of 0.51. This indicates moderate leverage.
SYNOPSYS INC (SNPS) reported earnings per share (EPS) of $8.04 in its most recent fiscal year.
SYNOPSYS INC (SNPS) has a return on equity (ROE) of 7.1%. This indicates moderate shareholder returns.
SYNOPSYS INC (SNPS) has a 5-year average gross margin of 76.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for SYNOPSYS INC (SNPS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SYNOPSYS INC (SNPS) has a book value per share of $170.96, based on its most recent annual SEC filing.