SNPSSynopsys demonstrates strong financial health and impressive growth, with positive technical indicators. While the valuation is a consideration, the company's solid fundamentals and market position suggest a favorable outlook.
Synopsys is a key player in the semiconductor design automation and IP market, benefiting from strong secular tailwinds in AI, automotive, and advanced computing. Its integrated solutions create a sticky ecosystem for its customers.
Synopsys exhibits robust revenue and earnings growth, coupled with healthy profit margins and a strong balance sheet. The P/S ratio is on the higher side, but this is often characteristic of leading technology firms with strong growth prospects.
Synopsys is trading in a strong uptrend, with most moving averages indicating bullish sentiment. However, some oscillators are in overbought territory, suggesting a potential for consolidation.
| Factor | Score |
|---|---|
| Semiconductor Industry Growth | 90 |
| AI & Machine Learning Enablement | 95 |
| Automotive Technology | 85 |
| Supplier Power | 88 |
| Regulatory & Geopolitical Risks | 60 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 95 |
| Growth | 85 |
| Balance Sheet Health | 98 |
| Cash Flow | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 60 |
| Volume Trend | 70 |
| Support and Resistance | 70 |
Consistent EPS Beat
The company has exceeded earnings per share (EPS) estimates for the last 5 consecutive quarters, with an average surprise of 4.93%.
Growth-Oriented Valuation
The Price/Earnings to Growth (PEG) ratio is 0.81, suggesting the stock might be undervalued relative to its expected earnings growth rate.
High Forward P/E Ratio
The forward P/E ratio is 71.5, which is significantly higher than the industry average, suggesting potential overvaluation.
Slowing Revenue Growth
While revenue grew year-over-year, the growth rate has been decelerating in recent quarters, raising concerns about future expansion.
August 2025
19
Next Earnings Date
H: $3.87
A: $3.81
L: $3.43
H: 1.79B
A: 1.77B
L: 1.70B
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. 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 virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides intellectual property (IP) solutions for UCIe, USB, PCI Express, DDR, Ethernet, MIPI, and HDMI; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
614.07 USD
The 39 analysts offering 1 year price forecasts for SNPS have a max estimate of 685.00 and a min estimate of 520.00.