StockCV
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Synopsys Inc

Services-Prepackaged Software

$509.52
+2.36%
Market cap $97.6B

Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution.

It is a $97.6B technology company. Revenue grew 46.3% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~3.8 years of free cash flow. It trades at 90.8× earnings — near the highest of its own history.

Location
Sunnyvale, CA
Employees
28 000
Sector
Technology
Founded
1986

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation10Growth85Profitability50Health42Quality80Moat81

Strong growth, quality and moat; Valuation and Health lag behind.

Valuation10
  • P/E vs own history95th pct · 0/25
  • FCF yield2.8% · 5/25
  • P/S10.4x · 5/25
  • EV/EBITDA43.4x · 0/25
Growth85
  • Revenue CAGR13.8% · 20/25
  • Net income CAGR15.2% · 20/25
  • EPS CAGR ~5Y13.5% · 20/25
  • Fwd implied growth286.1% · 25/25
Profitability50
  • ROIC3.4% · 5/25
  • ROE3.6% · 5/25
  • Net margin11.4% · 20/25
  • Operating margin18.9% · 20/25
Health42
  • Altman Zn/a · 0/25
  • Current ratio1.34 · 12/25
  • Interest coverage8.9x · 18/25
  • Net cash / debtD/A 22% · 12/25
Quality80
  • Piotroski F3/9 · 5/25
  • Beneish M-5.14 · 25/25
  • FCF conversion255% · 25/25
  • Margin stabilityσ 4.8% · 25/25
Moat81
  • ROIC >12% years5/10 yrs · 13/25
  • Median gross margin78.0% · 25/25
  • FCF-positive years10/10 yrs · 25/25
  • Worst-year net marginworst 5.0% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. 2025Acquisition
    Synopsys announced that the European Commission had approved its proposed $35 Billion acquisition…
  2. FY2024Financial
    Best year on record
    $2.26B net income
  3. Jan 16, 2024Acquisition
    The transaction, first announced on January 16, 2024, was valued at approximately $35 billion, making it the largest…
  4. 2021Acquisition
    It was acquired by Synopsys in 2021
  5. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  6. FY2016Financial
    Revenue already above $1B
    $2.42B in first reported year
  7. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  8. 2015Acquisition
    Synopsys announced the acquisition of Cigital along with its 2015 spinoff Codiscope in November 2016
  9. 2012Acquisition
    Ciranova was acquired by Synopsys in 2012
  10. 2010Acquisition
    CoWare was acquired by Synopsys in February 2010
  11. 2006Acquisition
    Virtio Corporation was acquired by Synopsys in May 2006
  12. 1992IPO
    It became a public company through an initial public offering in February 1992, opening on NASDAQ at $7.13 a share…
  13. 1987Milestone
    The company changed its name to Synopsys and moved to Mountain View, California in 1987
  14. 1986Founded
    Synopsys was founded by Aart de Geus, David Gregory, Alberto Sangiovanni-Vincentelli and Bill Krieger in 1986 in…

Achievements

Verifiable track record, straight from the reported numbers.

#46 largest of 220 Technology companies by market cap
$10 000 invested in 2021 would be worth ~$15 366 today — price return only
$7.1B revenue in FY2025
Revenue up 46.3% year over year
Profitable 10 years in a row
Positive free cash flow 10 years in a row
28 000 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (72.4%)
  • Revenue growing 46.3% year over year
  • Strong cash conversion — FCF is 29.2% of revenue
  • Interest covered 8.9× by operating earnings

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 10 checks passed
  • Revenue growing+46.3% YoY
  • Profitable$1.08B TTM
  • Profit growing+8.5% YoY
  • Generates cash$2.75B TTM
  • Debt under control~3.8y of cash flow to repay
  • Established company$97.6B market cap
  • Not printing shares+6.4% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stablehealth score 30/100
  • Pays a dividendno data
  • Valuation not extremeP/E 90.8
Peer comparisonSynopsys Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
SNPS this company$97.6B90.8+46.3%11.4%Strained
NVDA Nvidia Corp$5.5T28.6+83.4%63.7%Mixed
AAPL Apple Inc.$4.9T38.1+14.2%27.6%Strong
GOOGL Alphabet Inc.$4.3T17.6+20.1%54.8%Mixed
MSFT Microsoft Corp$4.0T29.7+17.8%40.3%Strong
SPCX Space Exploration Technologies Corp.$2.1T—+33.2%-34.0%Strained
META Meta Platforms, Inc.$1.8T26.9+27.7%29.8%Mixed

Head-to-head: SNPS vs NVDA · SNPS vs AAPL · SNPS vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 10Buy 16Hold 5Sell 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of SNPS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $509.52 · market cap $97.6B.