Synopsys, Inc. SNPS
Composite 41/100; the shares have moved about 45% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 20/100 — a strong mark against it.
Balance-sheet strength ranks 61/100 — a slight point in its favour.
Momentum ranks 20/100 — a strong mark against it. Valuation ranks 31/100 — a moderate mark against it. Quality ranks 37/100 — a moderate mark against it.
What the company does Synopsys provides electronic design automation (EDA) and silicon-proven IP solutions for semiconductor and electronics design. Its offerings include digital and custom IC design tools, verification solutions, FPGA-based prototyping, and AI-driven EDA. The company collaborates with Arm on AGI CPU development, integrating EDA, interface IP, and hardware-assisted verification.
Key financials Revenue grew 15.1% but EPS fell -42.5%. Margins: gross 82.9%, operating 14.5%, net 11.4%. ROE 3.7%, ROA 1.4%, ROCE 4.5%. Debt/Equity 0.35, net debt/EBITDA 3.49, interest coverage 3.08. Valuation metrics: P/E 77.38 (fwd 26.95), PEG 2.50, EV/EBITDA 25.80, P/B 2.86, FCF yield 4.3%.
Stock health Overall Sideravia score 40.4 (Weak quality, richly valued, weak momentum). Quality 38.1, Growth 48.2, Strength 61.2, Valuation 27.7, Momentum 22.6, Income 50.0. Piotroski F-Score 3/9, Altman Z 3.76. RSI(14) 49.80.
Price vs fair value The stock trades at a discount of 34.60% versus the analyst mean target of 558.25. - Analysts cite 25.39% upside potential (Wall Street Analysts See a 25.39% Upside in Synopsys). - Recent earnings call transcript suggests operational focus (Synopsys (SNPS) Q3 2026 Earnings Call Transcript). - Cash flow strength noted despite rich earnings valuation (Synopsys (SNPS) Stock Looks Reasonable On Cash Flow While Earnings Look Rich).
Looking forward Forward P/E 26.95 and PEG 0.14 suggest near-term earnings growth may not yet be priced in. However, weak momentum scores and high valuation multiples temper enthusiasm. Debt metrics remain manageable but liquidity ratios are modest.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.