ScoreWhy is Synopsys, Inc. ?
1
High Management Efficiency with a high ROE of 17.14%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Operating profit has grown by an annual rate 20.79%
4
The company has declared Negative results for the last 5 consecutive quarters
- ROCE(HY) Lowest at 6.61%
- INTEREST COVERAGE RATIO(Q) Lowest at 293.56
- RAW MATERIAL COST(Y) Grown by 7.32% (YoY)
5
With ROE of 13.98%, it has a fair valuation with a 7.81 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -3.47%, its profits have fallen by -6.1%
6
High Institutional Holdings at 96.59%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 3.1% over the previous quarter.
7
Below par performance in long term as well as near term
- Along with generating -3.47% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Synopsys, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Synopsys, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Synopsys, Inc.
-100.0%
-0.31
56.17%
S&P 500
18.55%
0.81
19.85%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.83%
EBIT Growth (5y)
20.79%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.78
Tax Ratio
5.15%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
96.59%
ROCE (avg)
24.76%
ROE (avg)
17.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
7.81
EV to EBIT
51.96
EV to EBITDA
42.37
EV to Capital Employed
12.64
EV to Sales
11.80
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.32%
ROE (Latest)
13.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND EQV(HY)
Highest at USD 16,865.63 MM
NET SALES(Q)
Highest at USD 1,738.68 MM
-20What is not working for the Company
ROCE(HY)
Lowest at 6.61%
INTEREST COVERAGE RATIO(Q)
Lowest at 293.56
RAW MATERIAL COST(Y)
Grown by 7.32% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 45.42 %
INTEREST(Q)
Highest at USD 145.17 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 24.51 %
PRE-TAX PROFIT(Q)
Lowest at USD 313.04 MM
EPS(Q)
Lowest at USD 1.5
Here's what is working for Synopsys, Inc.
Net Sales
Highest at USD 1,738.68 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 16,865.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 143.53 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 143.53 MM has Grown at 90.97%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Synopsys, Inc.
Interest
At USD 145.17 MM has Grown at 55.35%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 293.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 145.17 MM
in the last five periods and Increased by 55.35% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 24.51 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 313.04 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
EPS
Lowest at USD 1.5
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 45.42 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 7.32% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.93 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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