Is Synopsys Stock a Good Investment?
Synopsys Investment Advice | SNPS |
- Examine Synopsys' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Synopsys' leadership team and their track record. Good management can help Synopsys navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Synopsys' business and its evolving consumer preferences.
- Compare Synopsys' performance and market position to its competitors. Analyze how Synopsys is positioned in terms of product offerings, innovation, and market share.
- Check if Synopsys pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Synopsys' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Synopsys stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Synopsys is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Synopsys Stock
Researching Synopsys' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 9.25. Synopsys had not issued any dividends in recent years. The entity had 2:1 split on the 24th of September 2003.
To determine if Synopsys is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Synopsys' research are outlined below:
Synopsys is unlikely to experience financial distress in the next 2 years | |
Synopsys has a strong financial position based on the latest SEC filings | |
Over 91.0% of the company shares are owned by institutional investors | |
Latest headline from finance.yahoo.com: Synopsys Falls More Steeply Than Broader Market What Investors Need to Know |
Synopsys Quarterly Cash And Short Term Investments |
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Synopsys uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Synopsys. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Synopsys' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
21st of February 2024 Upcoming Quarterly Report | View | |
15th of May 2024 Next Financial Report | View | |
31st of January 2024 Next Fiscal Quarter End | View | |
4th of December 2024 Next Fiscal Year End | View | |
31st of October 2023 Last Quarter Report | View | |
31st of October 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Synopsys' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Synopsys' investors have experienced.
Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2006-11-29 | 2006-10-31 | 0.19 | 0.21 | 0.02 | 10 | ||
2006-08-16 | 2006-07-31 | 0.19 | 0.21 | 0.02 | 10 | ||
2006-05-17 | 2006-04-30 | 0.15 | 0.17 | 0.02 | 13 | ||
2005-08-17 | 2005-07-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2004-12-01 | 2004-10-31 | 0.03 | 0.01 | -0.02 | 66 | ||
2002-06-04 | 2002-04-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2001-12-03 | 2001-10-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2001-05-23 | 2001-04-30 | 0.1 | 0.12 | 0.02 | 20 |
Synopsys Target Price Consensus
Synopsys target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Synopsys' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
22 | Strong Buy |
Most Synopsys analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Synopsys stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Synopsys, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationSynopsys Target Price Projection
Synopsys' current and average target prices are 522.53 and 634.37, respectively. The current price of Synopsys is the price at which Synopsys is currently trading. On the other hand, Synopsys' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Synopsys Market Quote on 16th of February 2025
Target Price
Analyst Consensus On Synopsys Target Price
Synopsys Analyst Ratings
Synopsys' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Synopsys stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Synopsys' financials, market performance, and future outlook by experienced professionals. Synopsys' historical ratings below, therefore, can serve as a valuable tool for investors.Know Synopsys' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Synopsys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Synopsys backward and forwards among themselves. Synopsys' institutional investor refers to the entity that pools money to purchase Synopsys' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Sustainable Growth Advisers, Lp | 2024-09-30 | 1.8 M | Pictet Asset Manangement Sa | 2024-09-30 | 1.7 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 1.6 M | Van Eck Associates Corporation | 2024-12-31 | 1.5 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.5 M | Nuveen Asset Management, Llc | 2024-09-30 | 1.5 M | Swedbank Ab | 2024-12-31 | 1.5 M | Legal & General Group Plc | 2024-09-30 | 1.5 M | Ameriprise Financial Inc | 2024-09-30 | 1.5 M | Vanguard Group Inc | 2024-09-30 | 14.4 M | Blackrock Inc | 2024-09-30 | 13.2 M |
Synopsys' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 80.77 B.Market Cap |
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Synopsys' profitablity analysis
Last Reported | Projected for Next Year | ||
Return On Tangible Assets | 0.22 | 0.23 | |
Return On Capital Employed | 0.15 | 0.14 | |
Return On Assets | 0.20 | 0.21 | |
Return On Equity | 0.29 | 0.30 |
Determining Synopsys' profitability involves analyzing its financial statements and using various financial metrics to determine if Synopsys is a good buy. For example, gross profit margin measures Synopsys' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Synopsys' profitability and make more informed investment decisions.
Synopsys' Earnings Breakdown by Geography
Please note, the imprecision that can be found in Synopsys' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Synopsys. Check Synopsys' Beneish M Score to see the likelihood of Synopsys' management manipulating its earnings.
Evaluate Synopsys' management efficiency
Synopsys has return on total asset (ROA) of 0.0724 % which means that it generated a profit of $0.0724 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.186 %, meaning that it created $0.186 on every $100 dollars invested by stockholders. Synopsys' management efficiency ratios could be used to measure how well Synopsys manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Synopsys' Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.21 in 2025, whereas Return On Capital Employed is likely to drop 0.14 in 2025. At this time, Synopsys' Return On Tangible Assets are comparatively stable compared to the past year. Intangibles To Total Assets is likely to gain to 0.29 in 2025, whereas Deferred Long Term Asset Charges is likely to drop slightly above 313 M in 2025.Last Reported | Projected for Next Year | ||
Book Value Per Share | 53.03 | 55.68 | |
Tangible Book Value Per Share | 31.61 | 33.19 | |
Enterprise Value Over EBITDA | 50.08 | 52.59 | |
Price Book Value Ratio | 10.06 | 6.38 | |
Enterprise Value Multiple | 50.08 | 52.59 | |
Price Fair Value | 10.06 | 6.38 | |
Enterprise Value | 44.6 B | 46.9 B |
Effective leadership at Synopsys drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Beta 1.121 |
Basic technical analysis of Synopsys Stock
As of the 16th of February 2025, Synopsys has the Risk Adjusted Performance of (0.01), coefficient of variation of (3,268), and Variance of 6.31. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Synopsys, as well as the relationship between them. Please validate Synopsys market risk adjusted performance and treynor ratio to decide if Synopsys is priced more or less accurately, providing market reflects its prevalent price of 522.53 per share. Given that Synopsys has information ratio of (0.04), we advise you to double-check Synopsys's current market performance to make sure the company can sustain itself at a future point.Synopsys' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Synopsys insiders, such as employees or executives, is commonly permitted as long as it does not rely on Synopsys' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Synopsys insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
De Geus Aart over six months ago Disposition of 186551 shares by De Geus Aart of Synopsys subject to Rule 16b-3 | ||
De Geus Aart over six months ago Disposition of 5448 shares by De Geus Aart of Synopsys at 89.76 subject to Rule 16b-3 | ||
De Geus Aart over six months ago Disposition of 4340 shares by De Geus Aart of Synopsys at 89.76 subject to Rule 16b-3 | ||
Richard Mahoney over six months ago Disposition of 3411 shares by Richard Mahoney of Synopsys at 590.21 subject to Rule 16b-3 | ||
De Geus Aart over six months ago Acquisition by De Geus Aart of 10938 shares of Synopsys at 567.06 subject to Rule 16b-3 | ||
Roy Vallee over a year ago Exercise or conversion by Roy Vallee of 6666 shares of Synopsys subject to Rule 16b-3 | ||
Roy Vallee over a year ago Acquisition by Roy Vallee of 464 shares of Synopsys subject to Rule 16b-3 |
Synopsys' Outstanding Corporate Bonds
Synopsys issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Synopsys uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Synopsys bonds can be classified according to their maturity, which is the date when Synopsys has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
SNV 5625 15 FEB 28 Corp BondUS87164DVJ61 | View | |
SYNCHRONY FINL 45 Corp BondUS87165BAG86 | View | |
SYNCHRONY FINL 395 Corp BondUS87165BAM54 | View | |
SYNCHRONY FINL 37 Corp BondUS87165BAL71 | View | |
SYF 4875 13 JUN 25 Corp BondUS87165BAS25 | View | |
SYF 2875 28 OCT 31 Corp BondUS87165BAR42 | View | |
SYF 725 02 FEB 33 Corp BondUS87165BAU70 | View | |
SNX 265 09 AUG 31 Corp BondUS87162WAK62 | View |
Understand Synopsys' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Synopsys' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
Risk Adjusted Performance | (0.01) | |||
Market Risk Adjusted Performance | (0.07) | |||
Mean Deviation | 1.72 | |||
Coefficient Of Variation | (3,268) | |||
Standard Deviation | 2.51 | |||
Variance | 6.31 | |||
Information Ratio | (0.04) | |||
Jensen Alpha | (0.09) | |||
Total Risk Alpha | (0.09) | |||
Treynor Ratio | (0.08) | |||
Maximum Drawdown | 15.49 | |||
Value At Risk | (3.67) | |||
Potential Upside | 3.02 | |||
Skewness | (2.04) | |||
Kurtosis | 8.12 |
Risk Adjusted Performance | (0.01) | |||
Market Risk Adjusted Performance | (0.07) | |||
Mean Deviation | 1.72 | |||
Coefficient Of Variation | (3,268) | |||
Standard Deviation | 2.51 | |||
Variance | 6.31 | |||
Information Ratio | (0.04) | |||
Jensen Alpha | (0.09) | |||
Total Risk Alpha | (0.09) | |||
Treynor Ratio | (0.08) | |||
Maximum Drawdown | 15.49 | |||
Value At Risk | (3.67) | |||
Potential Upside | 3.02 | |||
Skewness | (2.04) | |||
Kurtosis | 8.12 |
Consider Synopsys' intraday indicators
Synopsys intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Synopsys stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Synopsys Corporate Filings
14th of February 2025 Other Reports | ViewVerify | |
F4 | 16th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10th of January 2025 Other Reports | ViewVerify | |
10K | 19th of December 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
Synopsys Stock media impact
Far too much social signal, news, headlines, and media speculation about Synopsys that are available to investors today. That information is available publicly through Synopsys media outlets and privately through word of mouth or via Synopsys internal channels. However, regardless of the origin, that massive amount of Synopsys data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Synopsys news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Synopsys relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Synopsys' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Synopsys alpha.
Synopsys Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Synopsys can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Synopsys Historical Investor Sentiment
Investor biases related to Synopsys' public news can be used to forecast risks associated with an investment in Synopsys. The trend in average sentiment can be used to explain how an investor holding Synopsys can time the market purely based on public headlines and social activities around Synopsys. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Synopsys' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Synopsys and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Synopsys news discussions. The higher the estimate score, the more favorable the investor's outlook on Synopsys.
Synopsys Maximum Pain Price Across March 21st 2025 Option Contracts
Synopsys' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Synopsys close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Synopsys' options.
Synopsys Corporate Management
Shankar Krishnamoorthy | Head Development | Profile | |
Paul Stravers | Principal Engineer | Profile | |
Shelagh Glaser | Chief Officer | Profile | |
Charlie Matar | Senior Group | Profile | |
John Koeter | Senior Strategy | Profile | |
John Runkel | General Counsel and Corporate Secretary | Profile |
Additional Tools for Synopsys Stock Analysis
When running Synopsys' price analysis, check to measure Synopsys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Synopsys is operating at the current time. Most of Synopsys' value examination focuses on studying past and present price action to predict the probability of Synopsys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Synopsys' price. Additionally, you may evaluate how the addition of Synopsys to your portfolios can decrease your overall portfolio volatility.