Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution.
It is a $97.6B technology company. Revenue grew 46.3% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~3.8 years of free cash flow. It trades at 90.8× earnings — near the highest of its own history.
- Website
- synopsys.com
- Location
- Sunnyvale, CA
- Employees
- 28 000
- Sector
- Technology
- Founded
- 1986
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong growth, quality and moat; Valuation and Health lag behind.
Valuation10
- P/E vs own history95th pct · 0/25
- FCF yield2.8% · 5/25
- P/S10.4x · 5/25
- EV/EBITDA43.4x · 0/25
Growth85
- Revenue CAGR13.8% · 20/25
- Net income CAGR15.2% · 20/25
- EPS CAGR ~5Y13.5% · 20/25
- Fwd implied growth286.1% · 25/25
Profitability50
- ROIC3.4% · 5/25
- ROE3.6% · 5/25
- Net margin11.4% · 20/25
- Operating margin18.9% · 20/25
Health42
- Altman Zn/a · 0/25
- Current ratio1.34 · 12/25
- Interest coverage8.9x · 18/25
- Net cash / debtD/A 22% · 12/25
Quality80
- Piotroski F3/9 · 5/25
- Beneish M-5.14 · 25/25
- FCF conversion255% · 25/25
- Margin stabilityσ 4.8% · 25/25
Moat81
- ROIC >12% years5/10 yrs · 13/25
- Median gross margin78.0% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 5.0% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2025AcquisitionSynopsys announced that the European Commission had approved its proposed $35 Billion acquisition…
- FY2024FinancialBest year on record$2.26B net income
- Jan 16, 2024AcquisitionThe transaction, first announced on January 16, 2024, was valued at approximately $35 billion, making it the largest…
- 2021AcquisitionIt was acquired by Synopsys in 2021
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$2.42B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2015AcquisitionSynopsys announced the acquisition of Cigital along with its 2015 spinoff Codiscope in November 2016
- 2012AcquisitionCiranova was acquired by Synopsys in 2012
- 2010AcquisitionCoWare was acquired by Synopsys in February 2010
- 2006AcquisitionVirtio Corporation was acquired by Synopsys in May 2006
- 1992IPOIt became a public company through an initial public offering in February 1992, opening on NASDAQ at $7.13 a share…
- 1987MilestoneThe company changed its name to Synopsys and moved to Mountain View, California in 1987
- 1986FoundedSynopsys was founded by Aart de Geus, David Gregory, Alberto Sangiovanni-Vincentelli and Bill Krieger in 1986 in…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (72.4%)
- Revenue growing 46.3% year over year
- Strong cash conversion — FCF is 29.2% of revenue
- Interest covered 8.9× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+46.3% YoY
- Profitable — makes more than it spends$1.08B TTM
- Profit growing — earnings are higher than last year+8.5% YoY
- Generates cash — cash left after running and investing$2.75B TTM
- Debt under control — could handle its obligations~3.8y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$97.6B market cap
- Not printing shares — share count not ballooning — you keep your slice+6.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 30/100
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 90.8
Peer comparisonSynopsys Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| SNPS this company | $97.6B | 90.8 | +46.3% | 11.4% | Strained |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: SNPS vs NVDA · SNPS vs AAPL · SNPS vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/SNPS
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of SNPS on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $509.52 · market cap $97.6B.