Stock · SNPS · Technology
United States · Large Cap · listed since 1992 · Revenue 12 mo. $9.4B
Price as of 11/06/2026
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries.
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. 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 pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). It has a strategic partnership with OpenAI to revolutionize the design of semiconductors. Synopsys, Inc. has a strategic agreement with Amazon to accelerate Amazon's custom silicon innovation and advance the development of complex AI-powered products and cloud infrastructure. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
Original text from the data provider
Summary
43.4 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €1.2B (2025), it supports €13.5B. The remaining €64.3B of the market value assume it grows 24.5% a year for 10 years and not at all afterwards.
Required FCF growth per year
24.5%
no growth afterwards
Price to operating cash flow 29.5×, below its usual range.
Middle half of 20 quarters: 30.1× to 54.2×, median 40.5×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
Since the last quarter
Q2 → Q3 2026
3 more unchanged: FCF, 12 mo., Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 4.70% | 14.60% | Rank 23 |
| Return on capital (Greenblatt) | 24.81% | 29.77% | Rank 43 |
| EBIT margin | 12.97% | 17.40% | Rank 41 |
| FCF margin | 19.13% | 18.54% | Rank 53 |
| Gross margin | 76.98% | 48.47% | Rank 86 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 15.12% | 12.70% | Rank 58 |
| Earnings growth, 3 years per year | 9.41% | 9.54% | Rank 49 |
| Earnings growth, 5 years per year | 14.07% | 14.07% | Rank 50 |
| Sustainable growth (ROE × retained earnings) | 2.40% | 2.87% | Rank 45 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 1.83% | 2.64% | Rank 34 |
| FCF yield | 1.56% | 3.06% | Rank 28 |
| EV/saleslower is better | 13.88 | 5.18 | Rank 18 |
| EV/EBITlower is better | 107.05 | 26.24 | Rank 12 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | 4.11% | −0.59% | Rank 57 |
| Share price, 6 months | −12.30% | −4.46% | Rank 41 |
| Share price, 3 months | 13.42% | −5.84% | Rank 83 |
| Distance from 52-week high | −15.73% | −33.23% | Rank 81 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 51.31% | 1.65% | Rank 2 |
| Change in share countlower is better | 3.68% | −0.17% | Rank 12 |
| Dividend streak in years | – | 8 | Rank 18 |
| Price reaction to results, market-adjusted | 12.92% | −1.57% | Rank 92 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 58.74% | 53.98% | Rank 63 |
| Net debt/EBITDAlower is better | 4.53 | −0.20 | Rank 4 |
| Debt to equitylower is better | 0.50 | 0.33 | Rank 33 |
| Volatility, 1 yearlower is better | 45.16% | 50.37% | Rank 68 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt |
|---|---|---|---|---|---|
| 2016 | 2.4 | 13.1% | $515.6M | 155M | −$771.6M |
| 2017 | 2.7 | 12.8% | $561.0M | 155M | −$904.4M |
| 2018 | 3.1 | 11.5% | $322.3M | 153M | −$253.8M |
| 2019 | 3.4 | 15.5% | $598.1M | 154M | −$590.9M |
| 2020 | 3.7 | 16.8% | $832.6M | 156M | −$572.2M |
| 2021 | 4.2 | 17.5% | $1.4B | 157M | −$766.1M |
| 2022 | 4.6 | 24.9% | $1.6B | 156M | −$761.2M |
| 2023 | 5.3 | 23.9% | $1.5B | 155M | −$756.4M |
| 2024 | 6.1 | 22.1% | $1.3B | 156M | −$3.2B |
| 2025 | 7.1 | 13.0% | $1.3B | 162M | $11.4B |
2 of 7 StockScorer Score rules met · How the score is built
Synopsys Inc mainly meets criteria in the Growth category. Result from 18 strategies checked.
Synopsys Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
2 of 7 rules met
4 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Synopsys Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 54.7 | 35.1 |
| P/B ratio | 2.6 | 5.5 |
| Return on equity (ROE) | 4.7% | 14.6% |
| Equity ratio | 58.7% | 54.0% |
| Debt-to-equity (D/E) | 0.50 | 0.33 |
| Dividend yield | 0.0% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| SNPS | Synopsys Incthis page | |
| NET | Cloudflare Inc | locked |
| FTNT | Fortinet Inc | High6.4 |
| XYZ | Block, Inc | Low1.8 |
| NTAP | NetApp Inc | locked |
| ZS | Zscaler Inc | locked |
Signed up in 30 seconds, free.
Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.
How StockScorer rates every stock is explained on the methodology page.