Synopsys, Inc. (SNPS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Microsoft Corp.

Intuit, Inc.

ServiceNow, Inc.

Adobe, Inc.

Salesforce, Inc.

Oracle Corp.

Palo Alto Networks, Inc.

Shopify, Inc.

Synopsys, Inc.

VMware, Inc.

Activision Blizzard, Inc.

Why is Synopsys, Inc. ?

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)

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 -28.52%, its profits have fallen by -6.1%

Below par performance in long term as well as near term

Along with generating -28.52% 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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Synopsys, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Synopsys, Inc.

-18.67%

-0.53

56.97%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.83%

EBIT Growth (5y)

20.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.78

Tax Ratio

5.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

96.59%

ROCE (avg)

24.76%

ROE (avg)

17.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

Dividend Yield

ROCE (Latest)

24.32%

ROE (Latest)

13.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What 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 periods

MOJO 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 periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 143.53 MM

in the last five periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 313.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD 1.5

in the last five periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income