# Synopsys Inc (SNPS) — Stock CV

Synopsys Inc 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.

> 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.

## Identity

- **Ticker**: SNPS
- **Sector**: Technology
- **Industry**: Services-Prepackaged Software
- **Headquarters**: SUNNYVALE, CA
- **Employees**: 28 000
- **Website**: https://www.synopsys.com
- **Market cap**: $97.6B
- **Last price**: $509.52
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $9.42B
- **Net income**: $1.08B
- **Free cash flow**: $2.75B
- **Net debt**: $10.5B
- **P/E**: 90.8
- **Revenue growth (YoY)**: 46.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 10 |
| Growth | 85 |
| Profitability | 50 |
| Health | 42 |
| Quality | 80 |
| Moat | 81 |

## Qualifications (beginner checklist) — 8 of 10 passed

- [x] Revenue growing — +46.3% YoY
- [x] Profitable — $1.08B TTM
- [x] Profit growing — +8.5% YoY
- [x] Generates cash — $2.75B TTM
- [x] Debt under control — ~3.8y of cash flow to repay
- [x] Established company — $97.6B market cap
- [x] Not printing shares — +6.4% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 30/100
- [ ] Valuation not extreme — P/E 90.8

## Experience (career milestones)

- **2025** — Synopsys announced that the European Commission had approved its proposed $35 Billion acquisition…
- **FY2024** — Best year on record: $2.26B net income
- **Jan 16, 2024** — The transaction, first announced on January 16, 2024, was valued at approximately $35 billion, making it the largest…
- **2021** — It was acquired by Synopsys in 2021
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $2.42B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2015** — Synopsys announced the acquisition of Cigital along with its 2015 spinoff Codiscope in November 2016
- **2012** — Ciranova was acquired by Synopsys in 2012
- **2010** — CoWare was acquired by Synopsys in February 2010
- **2006** — Virtio Corporation was acquired by Synopsys in May 2006
- **1992** — It became a public company through an initial public offering in February 1992, opening on NASDAQ at $7.13 a share…
- **1987** — The company changed its name to Synopsys and moved to Mountain View, California in 1987
- **1986** — Synopsys was founded by Aart de Geus, David Gregory, Alberto Sangiovanni-Vincentelli and Bill Krieger in 1986 in…

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.20B | $758M | $1.40B |
| FY2022 | $5.08B | $985M | $1.60B |
| FY2023 | $5.84B | $1.23B | $1.51B |
| FY2024 | $6.13B | $2.26B | $1.28B |
| FY2025 | $7.05B | $1.33B | $1.35B |

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Source: https://stockcv.com/SNPS — derived from company filings; may be delayed or incomplete. Information, not investment advice.