COMPOSITE RISK SCORE
58
MODERATE
VAL:13/25 · FIN:13/25 · GRO:14/25 · TECH:18/25
📖 P/B RATIO
3.0x
Price to Book
🏛 MARKET CAP
$90.8B
Large Cap
📊 ROE
5.5%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Synopsys, Inc.
💼 BUSINESS MODEL
Synopsys, Inc.. provides design IP solutions in the semiconductor and electronics industries.. It operates in two segments, Design Automation and Design IP.. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions.. Operates in Software - Infrastructure within the Technology sector. Workforce of 28,000 employees.
🏰 MOAT & COMPETITION
Large-cap ($91B) — established player with meaningful market presence. Profit margin of 13.8% — moderate pricing power.
🚀 CATALYSTS
Why Atomera (ATOM) Is Up 60.7% After Expanding Synopsys GaN Modeling Collaboration (Simply Wall St.) Revenue growing at 66% — strong top-line momentum.
⚖️ ASYMMETRY CHECK
Analyst target range: $404 — $650 (mean $535, 26 analysts). Favorable asymmetry — upside potential of +37% vs downside floor of -15% (2.5x reward-to-risk).P/E of 72.6x — premium valuation , growth must sustain to avoid de-rating risk.
🔭 FUTURE OUTLOOK
Analyst consensus: Buy (26 analysts). Latest quarter earnings declined -78% YoY — watch for recovery signals.
P/E at 73x
P/B at 3.0x
Analyst target: $534.65 (+12.8%)
1Y return: +2.8%
ROE: 5.5%
Profit margin: 13.8%
Revenue growth: 65.5%
Debt/Equity: 36%
Revenue growth: 65.5%
Earnings growth: -82.0%
Beta: 1.15
Sector: Technology
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
86.6
71.9
57.2
42.5
27.8
2022
2023
2024
2025
2022: 75.3 2023: 59.8 2024: 32.7 2025: 58.9 58.9
18.9
14.9
10.8
6.8
2.7
2022
2023
2024
2025
2022: 16.5 2023: 14.8 2024: 10.1 2025: 3.2 3.2
22.6
19.7
16.8
13.9
10.9
2022
2023
2024
2025
2022: 19.7 2023: 17.1 2024: 14.8 2025: 12.9 12.9
16.7
13.9
11.0
8.2
5.3
2022
2023
2024
2025
2022: 6.3 2023: 7.9 2024: 14.5 2025: 8.0 8.0
💎 Valuation & Financial Metrics
P/E RATIO
72.6x
Trailing twelve months
P/B RATIO
3.0x
Price to Book value
PROFIT MARGIN
13.8%
Net profit margin
OPM
13.3%
Operating profit margin
ANALYST TARGET
$534.65
Range: $403.85 - $650.00
PEG RATIO
3.19
Price/Earnings to Growth
EV/EBITDA
62.8x
Enterprise value ratio
CURRENT RATIO
1.36
Liquidity measure
DIVIDEND YIELD
N/A
Annual yield
GROSS MARGIN
82.0%
Gross profit margin
SECTOR BENCHMARKS — SOFTWARE - INFRASTRUCTURE
P/E (fair) 35.0x (sector mid)
P/B (fair) 8.0x (sector mid)
ROE (good) 25% (sector target)
OPM (good) 25% (sector target)
D/E comfort <20 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q3 '24
N/A —
N/A —
N/A
N/A
Q4 '24
N/A —
N/A —
N/A
N/A
Q1 '25
$1.5B —
$295.7M —
$-67.5M
24.1%
Q2 '25
$1.6B +10.2%
$345.3M +16.8%
$275.4M
33.6%
Q3 '25
$1.7B +8.4%
$242.5M -29.8%
$671.0M
25.9%
Q4 '25
$2.3B +29.6%
$448.7M +85.0%
$639.7M
51.5%
Q1 '26
$2.4B +6.8%
$65.0M -85.5%
$856.8M
28.7%
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2022
$4.6B —
$984.6M —
$1.7B —
2023
$5.3B +15.2%
$1.2B +24.9%
$1.7B -2.0%
2024
$6.1B +15.2%
$2.3B +84.0%
$1.4B -17.4%
2025
$7.1B +15.1%
$1.3B -41.1%
$1.5B +7.9%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Synopsys, Inc. Makes Its Money
Quarterly
Annual
Revenue
$2.4B
Cost of Revenue
$637M
Gross Profit
$1.8B
R&D
$715M
SG&A
$579M
Operating Inc.
$321M
Tax
$14M
Interest
$163M
Other
$97M
Net Income
$65M
(2.7% margin)
Jan 2026 · All values in $ Millions
Revenue
$2.3B
Cost of Revenue
$655M
Gross Profit
$1.6B
R&D
$747M
SG&A
$576M
Operating Inc.
$121M
Tax
$68M
Interest
$195M
Other
$569M
Net Income
$449M
(19.9% margin)
Oct 2025 · All values in $ Millions
Revenue
$1.7B
Cost of Revenue
$381M
Gross Profit
$1.4B
R&D
$625M
SG&A
$540M
Operating Inc.
$165M
Interest
$147M
Other
$39M
Net Income
$243M
(13.9% margin)
Jul 2025 · All values in $ Millions
Revenue
$1.6B
Cost of Revenue
$318M
Gross Profit
$1.3B
R&D
$554M
SG&A
$352M
Operating Inc.
$376M
Tax
$47M
Interest
$94M
Other
$24M
Net Income
$345M
(21.5% margin)
Apr 2025 · All values in $ Millions
Revenue
$7.1B
Cost of Revenue
$1.6B
Gross Profit
$5.4B
R&D
$2.5B
SG&A
$1.8B
Operating Inc.
$915M
Tax
$56M
Interest
$447M
Other
$647M
Net Income
$1.3B
(18.9% margin)
Oct 2025 · All values in $ Millions
Revenue
$6.1B
Cost of Revenue
$1.2B
Gross Profit
$4.9B
R&D
$2.1B
SG&A
$1.4B
Operating Inc.
$1.4B
Tax
$100M
Interest
$37M
Other
$128M
Net Income
$2.3B
(36.9% margin)
Oct 2024 · All values in $ Millions
Revenue
$5.3B
Cost of Revenue
$1.0B
Gross Profit
$4.3B
R&D
$1.8B
SG&A
$1.1B
Operating Inc.
$1.3B
Tax
$90M
Other
$55M
Net Income
$1.2B
(23.1% margin)
Oct 2023 · All values in $ Millions
Revenue
$4.6B
Cost of Revenue
$898M
Gross Profit
$3.7B
R&D
$1.6B
SG&A
$956M
Operating Inc.
$1.2B
Tax
$139M
Net Income
$985M
(21.3% margin)
Oct 2022 · All values in $ Millions
Jan 2026
Oct 2025
Jul 2025
Apr 2025
🏦 Snapshot of Synopsys, Inc.'s Balance Sheet
Quarterly
Annual
Total Assets
$47.2B
Cash & Equiv.: $2.1B (4.5%)
Receivables: $1.6B (3.5%)
Inventory: $393M (0.8%)
Other Current: $1.2B (2.6%)
PP&E: $1.4B (2.9%)
Goodwill: $26.9B (56.9%)
Other Intangibles: $12.3B (26.0%)
Other Non-Curr.: $1.3B (2.8%)
Liab. + Equity
$47.2B
Current Liab.: $3.9B (8.3%)
Long-Term Debt: $10.0B (21.2%)
Other Liab.: $2.7B (5.8%)
Equity: $30.5B (64.7%)
As of Jan 2026 · All values in $ Millions
Total Assets
$48.2B
Cash & Equiv.: $2.9B (6.0%)
Receivables: $1.5B (3.2%)
Inventory: $365M (0.8%)
Other Current: $1.2B (2.5%)
PP&E: $1.4B (2.9%)
Goodwill: $26.9B (55.8%)
Other Intangibles: $12.7B (26.3%)
Other Non-Curr.: $1.2B (2.6%)
Liab. + Equity
$48.2B
Current Liab.: $3.7B (7.7%)
Long-Term Debt: $13.5B (27.9%)
Other Liab.: $2.7B (5.6%)
Equity: $28.3B (58.7%)
As of Oct 2025 · All values in $ Millions
Total Assets
$48.2B
Cash & Equiv.: $2.5B (5.2%)
Receivables: $1.4B (2.9%)
Inventory: $382M (0.8%)
Other Current: $1.3B (2.7%)
PP&E: $1.4B (2.9%)
Goodwill: $26.9B (55.9%)
Other Intangibles: $13.1B (27.1%)
Other Non-Curr.: $1.2B (2.5%)
Liab. + Equity
$48.2B
Current Liab.: $3.4B (7.1%)
Long-Term Debt: $14.3B (29.7%)
Other Liab.: $2.9B (5.9%)
Equity: $27.6B (57.3%)
As of Jul 2025 · All values in $ Millions
Total Assets
$23.8B
Cash & Equiv.: $14.1B (59.4%)
Receivables: $1.0B (4.2%)
Inventory: $395M (1.7%)
Other Current: $1.4B (5.7%)
PP&E: $1.2B (4.9%)
Goodwill: $3.5B (14.6%)
Other Non-Curr.: $2.1B (8.8%)
Liab. + Equity
$23.8B
Current Liab.: $2.4B (10.1%)
Long-Term Debt: $10.0B (42.2%)
Other Liab.: $1.4B (5.9%)
Equity: $9.9B (41.7%)
As of Apr 2025 · All values in $ Millions
Total Assets
$48.2B
Cash & Equiv.: $2.9B (6.0%)
Receivables: $1.5B (3.2%)
Inventory: $365M (0.8%)
Other Current: $1.2B (2.5%)
PP&E: $1.4B (2.9%)
Goodwill: $26.9B (55.8%)
Other Intangibles: $12.7B (26.3%)
Other Non-Curr.: $1.2B (2.6%)
Liab. + Equity
$48.2B
Current Liab.: $3.7B (7.7%)
Long-Term Debt: $13.5B (27.9%)
Other Liab.: $2.7B (5.6%)
Equity: $28.3B (58.7%)
As of Oct 2025 · All values in $ Millions
Total Assets
$13.1B
Cash & Equiv.: $3.9B (29.8%)
Receivables: $941M (7.2%)
Inventory: $362M (2.8%)
Other Current: $1.3B (9.7%)
PP&E: $1.1B (8.6%)
Goodwill: $3.4B (26.4%)
Other Intangibles: $195M (1.5%)
Other Non-Curr.: $1.8B (14.0%)
Liab. + Equity
$13.1B
Current Liab.: $2.7B (20.3%)
Long-Term Debt: $16M (0.1%)
Other Liab.: $1.4B (10.6%)
Equity: $9.0B (69.0%)
As of Oct 2024 · All values in $ Millions
Total Assets
$10.3B
Cash & Equiv.: $1.4B (13.9%)
Receivables: $835M (8.1%)
Inventory: $326M (3.2%)
Other Current: $836M (8.1%)
PP&E: $1.1B (10.7%)
Goodwill: $3.3B (32.4%)
Other Intangibles: $240M (2.3%)
Other Non-Curr.: $2.2B (21.4%)
Liab. + Equity
$10.3B
Current Liab.: $3.0B (28.9%)
Long-Term Debt: $18M (0.2%)
Other Liab.: $1.1B (11.1%)
Equity: $6.2B (59.8%)
As of Oct 2023 · All values in $ Millions
Total Assets
$9.4B
Cash & Equiv.: $1.4B (15.1%)
Receivables: $779M (8.3%)
Inventory: $212M (2.3%)
Other Current: $604M (6.4%)
PP&E: $1.0B (11.1%)
Goodwill: $3.8B (40.8%)
Other Intangibles: $386M (4.1%)
Other Non-Curr.: $1.1B (12.0%)
Liab. + Equity
$9.4B
Current Liab.: $2.8B (29.5%)
Long-Term Debt: $21M (0.2%)
Other Liab.: $1.1B (11.3%)
Equity: $5.6B (59.0%)
As of Oct 2022 · All values in $ Millions
Jan 2026
Oct 2025
Jul 2025
Apr 2025
💸 Looking into Synopsys, Inc.'s Cash Flow
Quarterly
Annual
Operating CF
$857M
Capital Exp.
$35M
Free Cash Flow
$822M
Debt Repaid
$3.5B
FY2026 · All values in $ Millions
Operating CF
$640M
Capital Exp.
$35M
Free Cash Flow
$605M
Debt Repaid
$861M
FY2025 · All values in $ Millions
Operating CF
$671M
Capital Exp.
$39M
Free Cash Flow
$632M
Retained / Other
$631M
FY2025 · All values in $ Millions
Operating CF
$275M
Capital Exp.
$56M
Free Cash Flow
$220M
Retained / Other
$220M
FY2025 · All values in $ Millions
Operating CF
$1.5B
Capital Exp.
$169M
Free Cash Flow
$1.3B
Debt Repaid
$864M
Retained / Other
$486M
FY2025 · All values in $ Millions
Operating CF
$1.4B
Capital Exp.
$140M
Free Cash Flow
$1.3B
Retained / Other
$1.3B
FY2024 · All values in $ Millions
Operating CF
$1.7B
Capital Exp.
$192M
Free Cash Flow
$1.5B
Buybacks
$1.2B
Retained / Other
$348M
FY2023 · All values in $ Millions
Operating CF
$1.7B
Capital Exp.
$139M
Free Cash Flow
$1.6B
Buybacks
$1.1B
Debt Repaid
$77M
Retained / Other
$423M
FY2022 · All values in $ Millions
FY2026
FY2025
FY2025
FY2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Jan '26 Oct '25 Jul '25 Apr '25 Jan '25 Oct '24 Jul '24 Total Revenue $2.41B $2.25B $1.74B $1.60B $1.46B — — Cost of Revenue $637.4M $654.7M $380.6M $318.3M $270.0M — — Gross Profit $1.77B $1.60B $1.36B $1.29B $1.19B — — Operating Expense $1.45B $1.48B $1.19B $909.5M $933.5M — — Operating Income $321.3M $121.4M $165.3M $376.4M $251.8M — — Interest Expense $162.7M $194.8M $146.5M $94.3M $11.1M — — Pretax Income $79.1M $516.5M $189.3M $396.2M $291.1M — — Tax Provision $14.3M $68.1M $-53.0M $47.2M $-6.3M — — Net Income $65.0M $448.7M $242.5M $345.3M $295.7M — — EBITDA $692.5M $1.16B $450.3M $539.4M $350.2M — — EPS (Basic) $0.34 $2.42 $1.51 $2.23 $1.91 — — EPS (Diluted) $0.34 $2.39 $1.50 $2.21 $1.89 — — Shares Outstanding 190.8M 187.5M 161.7M 156.1M 156.2M — —
📊 Profit & Loss Statement
Item Oct '25 Oct '24 Oct '23 Oct '22 Total Revenue $7.05B $6.13B $5.32B $4.62B Cost of Revenue $1.62B $1.25B $1.03B $898.0M Gross Profit $5.43B $4.88B $4.29B $3.72B Operating Expense $4.52B $3.53B $2.96B $2.56B Operating Income $914.9M $1.36B $1.33B $1.16B Interest Expense $446.7M $36.8M $2.7M $1.7M Pretax Income $1.39B $1.51B $1.31B $1.10B Tax Provision $56.0M $99.7M $90.2M $139.4M Net Income $1.33B $2.26B $1.23B $984.6M EBITDA $2.50B $1.85B $1.56B $1.33B EPS (Basic) $8.13 $14.78 $8.08 $6.44 EPS (Diluted) $8.04 $14.51 $7.92 $6.29 Shares Outstanding 165.7M 155.9M 155.2M 156.5M
🏦 Balance Sheet
Item Oct '25 Oct '24 Oct '23 Oct '22 Oct '21 Total Assets $48.22B $13.07B $10.33B $9.42B — Current Assets $6.01B $6.47B $3.43B $3.01B — Cash & Equivalents $2.89B $3.90B $1.43B $1.42B — Accounts Receivable $1.55B $941.3M $835.3M $779.4M — Inventory $365.2M $361.8M $325.6M $211.9M — Non-Current Assets $42.21B $6.60B $6.90B $6.41B — Property Plant & Equip $1.40B $1.13B $1.11B $1.04B — Goodwill $26.90B $3.45B $3.35B $3.84B — Intangible Assets $39.58B $3.64B $3.59B $4.23B — Total Liabilities $19.90B $4.05B $4.15B $3.86B — Current Liabilities $3.72B $2.65B $2.99B $2.77B — Accounts Payable $164.8M $207.3M $154.6M $37.6M — Short-Term Debt $22.1M — — — $75.0M Long-Term Debt $13.46B $15.6M $18.1M $20.8M — Total Equity $28.33B $9.02B $6.18B $5.56B — Retained Earnings $10.32B $8.98B $6.74B $5.53B — Book Value/Share -11.25B 5.35B 2.56B 1.29B —
💰 Cash Flow Statement
Item Oct '25 Oct '24 Oct '23 Oct '22 Oct '21 Operating Cash Flow $1.52B $1.41B $1.70B $1.74B — Depreciation & Amort. $660.4M $295.1M $247.1M $228.4M — Change in Working Cap $-496.6M $-707.6M $-327.3M $-59.3M — Capital Expenditure $-169.5M $-139.5M $-191.8M $-139.1M — Free Cash Flow $1.35B $1.27B $1.51B $1.60B — Investing Cash Flow $-15.88B $1.22B $-482.1M $-572.6M — Acquisitions $-16.68B $-156.9M $-297.7M $-422.4M — Financing Cash Flow $13.36B $-181.3M $-1.20B $-1.12B — Debt Issued $14.33B $0 $0 $0 — Debt Repaid $-863.6M $-2.6M $-2.6M $-76.8M — Share Buyback $0 $0 $-1.16B $-1.10B — Net Change in Cash $-1.01B $2.45B $24.3M $50.0M —
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 Gross Margin % 77.0% 79.7% 80.6% 80.5% Operating Margin % 13.0% 22.1% 24.9% 25.1% Net Margin % 18.9% 36.9% 23.1% 21.3% EBITDA Margin % 35.4% 30.1% 29.2% 28.9% ROE % 4.7% 25.1% 19.9% 17.7% ROA % 2.8% 17.3% 11.9% 10.5% Debt/Equity % 50.5% 7.6% 11.0% 11.8% Current Ratio 1.62 2.44 1.15 1.09 FCF Margin % 19.1% 20.7% 28.4% 34.7% Asset Turnover 0.15 0.47 0.51 0.49
🚀 Compounded Growth Rates
Revenue
1-Year +15.1% 3-Year CAGR +15.2%
Net Profit
1-Year -41.1% 3-Year CAGR +4.1%
EPS
1-Year -44.6% 3-Year CAGR +0.8%
🏭 Industry Peers — Software - Infrastructure
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth AAPL Apple Inc. $269.06 34.1 44.9 $3,950.1B 152.0% 27.0% 15.7% MSFT Microsoft Corporation $424.29 26.6 8.1 $3,153.6B 34.4% 39.0% 16.7% GOOGL Alphabet Inc. $350.62 32.4 10.2 $4,241.6B 35.7% 32.8% 18.0% META Meta Platforms, Inc. $671.99 28.6 7.8 $1,705.8B 30.2% 30.1% 23.8% NVDA NVIDIA Corporation $210.55 43.0 32.5 $5,117.4B 101.5% 55.6% 73.2% ORCL Oracle Corporation $162.84 29.2 14.0 $468.3B 57.6% 25.3% 21.7% CRM Salesforce, Inc. $180.33 23.1 2.8 $147.5B 12.4% 18.0% 12.1% ADBE Adobe Inc. $241.49 14.1 8.6 $97.6B 58.8% 29.5% 12.0%
Peers selected from Technology sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held Vanguard Group Inc Inst 18,464,862 9.64% Blackrock Inc. Inst 15,140,606 7.90% State Street Corporation Inst 8,788,890 4.59% FMR, LLC Inst 7,492,168 3.91% Capital World Investors Inst 6,635,080 3.46% VANGUARD INDEX FUNDS-Vanguard Total MF 5,832,829 3.04% VANGUARD INDEX FUNDS-Vanguard 500 I MF 4,684,054 2.45% Invesco QQQ Trust, Series 1 MF 3,951,126 2.06%
🟢 CATALYSTS
🏆 Revenue Growth 66%: Above sector norm of 30% — strong top-line momentum.
💹 Analyst Upside (13%): Mean target of $534.65 above current price.
🔀 Sector Opportunity: Technology / Software - Infrastructure — positioned in growth sector.
🔴 RISKS
📜 Elevated P/E (72.6x): Above sector expensive threshold of 60x.
💰 Market Risk: Broader market correction or sentiment shift could impact stock.
🔓 Sector Risk: Regulatory or competitive changes in Technology space.
🕸 Factor Analysis · Radar
Momentum 6/10: 1M +23.7%, 6M +4.1%, RSI 59, MACD bullish, Below 200DMA Sentiment 7/10: Analyst upside +12.8%, Rec: buy Value 1/10: P/E 72.6, P/B 3.0, PEG 3.19, EV/EBITDA 62.8 Quality 5/10: ROE 5.5%, Margin 13.8%, D/E 36, CR 1.36 Low Volatility 3/10: Beta 1.15, Ann. vol 57% Momentum
6
Sentiment
7
Value
1
Quality
5
Low Vol
3
Momentum 6/10 1M +23.7%, 6M +4.1%, RSI 59, MACD bullish, Below 200DMA
Sentiment 7/10 Analyst upside +12.8%, Rec: buy
Value 1/10 P/E 72.6, P/B 3.0, PEG 3.19, EV/EBITDA 62.8
Quality 5/10 ROE 5.5%, Margin 13.8%, D/E 36, CR 1.36
Low Volatility 3/10 Beta 1.15, Ann. vol 57%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Capture 12.8% analyst upside OPM of 13% provides margin buffer HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +23.7% shows momentum SELL Lock in +2.8% 1Y return Avoid further drawdown
REASONS TO BUY
Analyst upside of 12.8% with mean target of $534.65
Revenue growing at 65.5% YoY (sector norm: 12%)
REASONS TO SELL / AVOID
P/E of 72.6x exceeds sector expensive threshold of 60x
Synopsys, Inc. trades at $473.85 with a composite risk score of 58/100.
The stock scores 13/25 on valuation, 13/25 on financial health, 14/25 on growth, and 18/25 on technicals.
The company is currently profitable with moderate return on equity.
Bottom Line: Positive for Technology but monitor closely. The current recommendation is SPECULATIVE BUY .
PROFITABLE
STRONG GROWTH
UPSIDE POTENTIAL
EXPENSIVE