Synopsys Inc.
Find Ratings ReportsSYNOPSYS INC's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. SYNOPSYS INC has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 18.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
---|---|---|
Net Sales ($mil) | 1649.23 | 1361.34 |
EBITDA ($mil) | 422.51 | 354.09 |
EBIT ($mil) | 359.62 | 296.79 |
Net Income ($mil) | 449.11 | 271.54 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 1274.92 | 1303.58 |
Total Assets ($mil) | 10558.26 | 9565.62 |
Total Debt ($mil) | 669.96 | 690.43 |
Equity ($mil) | 6670.98 | 5636.75 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 83.45 | 82.83 |
EBITDA Margin | 25.61 | 26.01 |
Operating Margin | 21.81 | 21.8 |
Sales Turnover | 0.58 | 0.54 |
Return on Assets | 13.33 | 9.85 |
Return on Equity | 21.1 | 16.72 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.29 | 1.11 |
Debt/Capital | 0.09 | 0.11 |
Interest Expense | 1.32 | 0.26 |
Interest Coverage | 271.62 | 1124.21 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 152.54 | 152.38 |
Div / share | 0.0 | 0.0 |
EPS | 2.89 | 1.75 |
Book value / share | 43.73 | 36.99 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1336692.0 | 827956.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 54.01 for the Publishing Industries (except Internet) subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 12.79 indicates a significant premium versus the S&P 500 average of 4.68 and a discount versus the subsector average of 13.14. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
Price/Earnings |
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Price/Cash Flow |
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SNPS 61.60 | Peers 54.01 | SNPS 56.65 | Peers 269.30 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. SNPS is trading at a premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SNPS is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SNPS 35.81 | Peers 113.26 | SNPS 0.87 | Peers 0.51 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SNPS is trading at a significant discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SNPS trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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SNPS 12.79 | Peers 13.14 | SNPS 49.83 | Peers 32.50 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SNPS is trading at a valuation on par with its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. SNPS is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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SNPS 13.92 | Peers 15.40 | SNPS 18.51 | Peers 13.39 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SNPS is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. SNPS has a sales growth rate that significantly exceeds its peers. |
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