SNPS
Technology · Software - Infrastructure
Performance
SNPS (SNPS) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
SNPS (SNPS) operates in the Software - Infrastructure space within the Technology sector. With a market cap of $87.0B, it qualifies as a mid-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.
- Forward P/E (26.3×) is lower than trailing P/E (104.2×) — analysts expect earnings to improve
- Revenue grew 42% year-over-year — exceptional top-line expansion
- High P/E of 104.2× implies high expectations already priced in — leaves little room for disappointment
- Earnings fell 96% YoY — profitability is under pressure
- High debt-to-equity of 35.57× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
EPS (TTM)
$4.36
P/E (TTM)
104.2
Fwd P/E
26.3
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $454.38
Graham Number
√(22.5 × EPS × Book Value)
$124.97
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
4/10
50% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
3.8%Return on equity — measures how efficiently capital is used
Positive profit margin
8.9%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+41.9%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
-96.0%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
35.57×Low financial leverage reduces risk of distress
Current ratio above 1
1.43×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$837M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About SNPS
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. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
Sector
Technology
Industry
Software - Infrastructure
Location
Sunnyvale, United States
Employees
28,000