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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intuit, Inc.

Adobe, Inc.

ServiceNow, Inc.

Microsoft Corp.

Salesforce, Inc.

Shopify, Inc.

Oracle Corp.

Palo Alto Networks, Inc.

Synopsys, Inc.

VMware, Inc.

Activision Blizzard, Inc.

Why is Synopsys, Inc. ?

The company has declared Negative results for the last 9 consecutive quarters

INTEREST(HY) At USD 293.42 MM has Grown at 181.78%
ROCE(HY) Lowest at 3.83%
RAW MATERIAL COST(Y) Grown by 19.18% (YoY)

With ROE of 4.57%, it has a very expensive valuation with a 2.44 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 -2.01%, its profits have risen by 2.6%

Below par performance in long term as well as near term

Along with generating -2.01% 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.

-2.01%

-0.35

57.24%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.94%

EBIT Growth (5y)

11.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.54

Tax Ratio

5.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

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

2.44

EV to EBIT

68.78

EV to EBITDA

35.58

EV to Capital Employed

2.14

EV to Sales

10.30

PEG Ratio

Dividend Yield

ROCE (Latest)

3.11%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,796.46 MM

NET SALES(HY)

At USD 4,682.51 MM has Grown at 53.06%

INTEREST COVERAGE RATIO(Q)

Highest at 569.39

INVENTORY TURNOVER RATIO(HY)

Highest at 7.28 times

OPERATING PROFIT MARGIN(Q)

Highest at 33.05 %

-26What is not working for the Company

INTEREST(HY)

At USD 293.42 MM has Grown at 181.78%

ROCE(HY)

Lowest at 3.83%

RAW MATERIAL COST(Y)

Grown by 19.18% (YoY

PRE-TAX PROFIT(Q)

Lowest at USD 166.61 MM

NET PROFIT(Q)

Lowest at USD 146.03 MM

EPS(Q)

Lowest at USD 0.09

Here's what is working for Synopsys, Inc.

Interest Coverage Ratio

Highest at 569.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At USD 4,682.51 MM has Grown at 53.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 2,796.46 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 33.05 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 7.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 492.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Synopsys, Inc.

Interest

At USD 293.42 MM has Grown at 181.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD 166.61 MM has Fallen at -55.69%

over average net sales of the previous four periods of USD 376.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 146.03 MM has Fallen at -58.15%

over average net sales of the previous four periods of USD 348.94 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 166.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 146.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 19.18% (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 2.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income