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Company and Segment Overview Synopsys, Inc. (Synopsys, we, our or us) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver trusted and comprehensive solutions spanning silicon design, silicon intellectual property (IP), simulation and analysis (S&A) as well as design services.
$493.87
$4.56 (-0.91%)
Price from 15 days ago
13.06% operating margin is respectable but not wide. ROIC at 3.28%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 14.7%, still solid. Margins contracted 9.1pp, which offsets some of the top-line progress.
At 113x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 15.21% to 3.28%, capital efficiency is deteriorating.
113.0x earnings, 36.0x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$8.63B
▲ +14.7% YoY
Net Income (TTM)
$773M
▼ -41.1% YoY
Op. Margin
14.64%
▼ -9.1pp YoY
ROIC
2.93%
▼ -11.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.63B
▲ +6.4% YoY
Op. Cash Flow (TTM)
$2.80B
▲ +7.9% YoY
Net Debt
$8.36B
Cash & Equiv.
$2.48B
5Y CAGR: +13.8%
5Y CAGR: +10.0%
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