Synopsys Price To Sales vs. Operating Margin
| SNPS Stock | USD 558.49 10.75 1.96% |
Synopsys Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.92 | 0.91 |
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| Net Profit Margin | 0.2 | 0.19 |
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| Operating Profit Margin | 0.15 | 0.25 |
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| Pretax Profit Margin | 0.11 | 0.2 |
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| Return On Assets | 0.0759 | 0.14 |
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| Return On Equity | 0.12 | 0.23 |
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For Synopsys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Synopsys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Synopsys utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Synopsys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Synopsys over time as well as its relative position and ranking within its peers.
Synopsys |
Synopsys' Revenue Breakdown by Earning Segment
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Synopsys. If investors know Synopsys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Synopsys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.204 | Earnings Share 9.69 | Revenue Per Share 42.471 | Quarterly Revenue Growth 0.127 | Return On Assets 0.0862 |
The market value of Synopsys is measured differently than its book value, which is the value of Synopsys that is recorded on the company's balance sheet. Investors also form their own opinion of Synopsys' value that differs from its market value or its book value, called intrinsic value, which is Synopsys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Synopsys' market value can be influenced by many factors that don't directly affect Synopsys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Synopsys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Synopsys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Synopsys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Synopsys Operating Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Synopsys's current stock value. Our valuation model uses many indicators to compare Synopsys value to that of its competitors to determine the firm's financial worth. Synopsys is rated fifth in price to sales category among its peers. It is rated third in operating margin category among its peers reporting about 0.02 of Operating Margin per Price To Sales. The ratio of Price To Sales to Operating Margin for Synopsys is roughly 56.05 . At this time, Synopsys' Price To Sales Ratio is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Synopsys by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Synopsys Operating Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Synopsys |
| = | 13.23 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Synopsys |
| = | 0.24 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Synopsys Operating Margin Comparison
Synopsys is currently under evaluation in operating margin category among its peers.
Synopsys Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Synopsys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Synopsys will eventually generate negative long term returns. The profitability progress is the general direction of Synopsys' change in net profit over the period of time. It can combine multiple indicators of Synopsys, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -176.8 M | -167.9 M | |
| Operating Income | 1.5 B | 1.5 B | |
| Income Before Tax | 1.5 B | 1.6 B | |
| Total Other Income Expense Net | 37.4 M | 39.3 M | |
| Net Income | 1.4 B | 1.5 B | |
| Income Tax Expense | 96.2 M | 101 M | |
| Net Income Applicable To Common Shares | 1.1 B | 1.2 B | |
| Net Income From Continuing Ops | 1.4 B | 1.5 B | |
| Non Operating Income Net Other | -41.9 M | -39.8 M | |
| Interest Income | 42.2 M | 44.3 M | |
| Net Interest Income | 40.8 M | 42.9 M | |
| Change To Netincome | 589 M | 618.5 M | |
| Net Income Per Share | 7.28 | 7.64 | |
| Income Quality | 1.61 | 2.06 | |
| Net Income Per E B T | 0.85 | 0.66 |
Synopsys Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Synopsys. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Synopsys position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Synopsys' important profitability drivers and their relationship over time.
Use Synopsys in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Synopsys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Synopsys will appreciate offsetting losses from the drop in the long position's value.Synopsys Pair Trading
Synopsys Pair Trading Analysis
The ability to find closely correlated positions to Synopsys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Synopsys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Synopsys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Synopsys to buy it.
The correlation of Synopsys is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Synopsys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Synopsys moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Synopsys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Synopsys position
In addition to having Synopsys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.