Ratings Synopsys Inc.

Equities

SNPS

US8716071076

Real-time Estimate Cboe BZX Other stock markets 02:26:21 2024-04-23 pm EDT			5-day change	1st Jan Change
530 ^USD	+2.82%		-1.96%	+3.03%

Apr. 22	Chip design software firm Cadence forecasts sales below expectations, shares fall	RE
Apr. 11	US to consider concerns about China's Brite in trade sanction decisions	RE

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
The group's activity appears highly profitable thanks to its outperforming net margins.
Thanks to a sound financial situation, the firm has significant leeway for investment.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
Analysts covering this company mostly recommend stock overweighting or purchase.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.

Weaknesses

The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 53.46 times its estimated earnings per share for the ongoing year.
The company's "enterprise value to sales" ratio is among the highest in the world.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The valuation of the company is particularly high given the cash flows generated by its activity.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Software

	1st Jan change	Capi.	ESG Refinitiv
SYNOPSYS INC.	+3.03%	78.63B	B
MICROSOFT CORPORATION	+8.36%	2,979B	C+
CADENCE DESIGN SYSTEMS, INC.	+3.83%	77.7B	B+
DASSAULT SYSTÈMES SE	-12.94%	53.96B	B+
ATLASSIAN CORPORATION	-15.59%	50.39B	B-
PALANTIR TECHNOLOGIES INC.	+26.21%	46.4B	D+
THE TRADE DESK, INC.	+13.84%	38.04B	D+
SEA LIMITED	+53.72%	33.68B	D+
TAKE-TWO INTERACTIVE SOFTWARE, INC.	-11.36%	23.88B	C+
ROBLOX CORPORATION	-19.38%	22.37B	-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes