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 12.75%
4
The company has declared Negative results for the last 5 consecutive quarters
- ROCE(HY) Lowest at 7.16%
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.45 times
- RAW MATERIAL COST(Y) Grown by 16.41% (YoY)
5
With ROE of 5.58%, it has a very expensive valuation with a 2.94 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 -9.21%, its profits have risen by 14.2% ; the PEG ratio of the company is 3.9
6
Rising Promoter Confidence
- Promoters have increased their stake in the company by 2.81% over the previous quarter and currently hold 3.71% of the company
- Promoters increasing their stake is a sign of high confidence in the future of the business
7
Below par performance in long term as well as near term
- Along with generating -9.21% 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.
-10.41%
-0.49
57.29%
S&P 500
13.68%
0.71
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.86%
EBIT Growth (5y)
12.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.64
Tax Ratio
5.15%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
94.97%
ROCE (avg)
24.76%
ROE (avg)
17.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
Price to Book Value
2.94
EV to EBIT
78.61
EV to EBITDA
49.18
EV to Capital Employed
2.41
EV to Sales
13.33
PEG Ratio
3.92
Dividend Yield
NA
ROCE (Latest)
3.07%
ROE (Latest)
5.58%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 5.58 times
NET SALES(Q)
Highest at USD 2,253.04 MM
OPERATING PROFIT(Q)
Highest at USD 614.77 MM
PRE-TAX PROFIT(Q)
Highest at USD 549.36 MM
NET PROFIT(Q)
Highest at USD 477.2 MM
-17What is not working for the Company
ROCE(HY)
Lowest at 7.16%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.45 times
RAW MATERIAL COST(Y)
Grown by 16.41% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 39.99 %
INTEREST(Q)
Highest at USD 193.42 MM
Here's what is working for Synopsys, Inc.
Net Sales
At USD 2,253.04 MM has Grown at 40.17%
over average net sales of the previous four periods of USD 1,607.32 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
Highest at USD 2,253.04 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 614.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 549.36 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 549.36 MM has Grown at 56.1%
over average net sales of the previous four periods of USD 351.93 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 477.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 5.58 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at USD 449.12 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 449.12 MM has Grown at 212.91%
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 193.42 MM has Grown at 33.24%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 3.45 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at USD 193.42 MM
in the last five periods and Increased by 33.24% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 39.99 %
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 16.41% (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 1.12 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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