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Synopsys Inc (SNPS)



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Upturn Advisory Summary
07/29/2025: SNPS (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $623.65
1 Year Target Price $623.65
15 | Strong Buy |
4 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 22.17% | Avg. Invested days 49 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 117.65B USD | Price to earnings Ratio 73.5 | 1Y Target Price 623.65 |
Price to earnings Ratio 73.5 | 1Y Target Price 623.65 | ||
Volume (30-day avg) 22 | Beta 1.12 | 52 Weeks Range 365.74 - 647.20 | Updated Date 07/29/2025 |
52 Weeks Range 365.74 - 647.20 | Updated Date 07/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 8.65 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 34.77% | Operating Margin (TTM) 23.46% |
Management Effectiveness
Return on Assets (TTM) 4.67% | Return on Equity (TTM) 15.55% |
Valuation
Trailing PE 73.5 | Forward PE 36.63 | Enterprise Value 106140749410 | Price to Sales(TTM) 18.91 |
Enterprise Value 106140749410 | Price to Sales(TTM) 18.91 | ||
Enterprise Value to Revenue 17.06 | Enterprise Value to EBITDA 58.9 | Shares Outstanding 185044000 | Shares Floating 154330827 |
Shares Outstanding 185044000 | Shares Floating 154330827 | ||
Percent Insiders 0.41 | Percent Institutions 78.47 |
Upturn AI SWOT
Synopsys Inc

Company Overview
History and Background
Synopsys Inc. was founded in 1986 by Aart de Geus and Bill Goerke. Initially focused on synthesis, it has grown through acquisitions and internal development to become a leader in electronic design automation (EDA) and IP.
Core Business Areas
- EDA (Electronic Design Automation): Offers software tools used in the design and verification of integrated circuits. Includes solutions for logic synthesis, place and route, static timing analysis, and functional verification.
- IP (Intellectual Property): Provides pre-designed semiconductor components, such as processor cores, memory controllers, and interface IP, that are integrated into larger chips.
- Software Integrity: Focuses on application security testing solutions, helping organizations identify and remediate security vulnerabilities in their software.
Leadership and Structure
Aart de Geus is the Executive Chairman. Sassine Ghazi is the CEO. The company has a typical corporate structure with functional departments such as engineering, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- VCS (Verification Compiler Simulator): A leading simulation tool for verifying digital designs. It has a significant market share in the functional verification market. Competitors include Cadence's Xcelium and Mentor Graphics' Questa.
- Design Compiler: A logic synthesis tool that transforms a high-level design description into a gate-level netlist. Competitors include Cadence Genus and Siemens (Mentor) LeonardoSpectrum.
- ZeBu (Zero Bugs): An emulation system used for hardware and software co-verification of complex SoCs. Competitors are Cadence Palladium and Siemens Veloce.
Market Dynamics
Industry Overview
The EDA and IP market is driven by the increasing complexity of semiconductor designs and the growing demand for advanced technologies. Factors include AI, 5G, automotive, and cloud computing.
Positioning
Synopsys is a market leader in EDA and IP. Its competitive advantages include a comprehensive product portfolio, strong R&D capabilities, and a global customer base.
Total Addressable Market (TAM)
The total addressable market is estimated to be $12-15 billion. Synopsys is well-positioned to capture a significant portion of this TAM, benefiting from its leading market position and broad product offerings.
Upturn SWOT Analysis
Strengths
- Market leadership in EDA and IP
- Broad product portfolio
- Strong R&D capabilities
- Global customer base
- High switching costs for customers
Weaknesses
- Reliance on the semiconductor industry's cyclical nature
- Exposure to geopolitical risks
- Dependence on key personnel
Opportunities
- Growth in AI, 5G, automotive, and cloud computing
- Expansion into new markets such as software integrity
- Acquisitions of complementary technologies
Threats
- Intense competition from Cadence and Siemens EDA
- Economic downturns affecting semiconductor demand
- Technological disruptions
Competitors and Market Share
Key Competitors
- CDNS
- SI
Competitive Landscape
Synopsys and Cadence are the two leading EDA vendors, with Siemens EDA (formerly Mentor Graphics) also a significant player. Synopsys has a broader product portfolio than Cadence. Siemens EDA is strongest in emulation and hardware prototyping.
Major Acquisitions
WhiteHat Security
- Year: 2022
- Acquisition Price (USD millions): 250
- Strategic Rationale: Expanded Synopsys' application security testing portfolio.
MorethanIP
- Year: 2022
- Acquisition Price (USD millions): 30
- Strategic Rationale: Expanded Synopsys' portfolio of Ethernet IP for automotive applications
Growth Trajectory and Initiatives
Historical Growth: Synopsys has experienced steady growth in revenue and earnings over the past decade, driven by its strong market position and strategic acquisitions.
Future Projections: Analysts project continued growth for Synopsys, driven by the increasing demand for EDA and IP in the semiconductor industry.
Recent Initiatives: Recent initiatives include acquisitions in the software integrity space, expanding its capabilities beyond traditional EDA and IP.
Summary
Synopsys is a strong company, leading the EDA and IP market with a robust product portfolio and strategic acquisitions. Its growth is driven by semiconductor industry trends. Geopolitical issues and economic downturns may cause it issues to deal with.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market conditions are changing.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Synopsys Inc
Exchange NASDAQ | Headquaters Sunnyvale, CA, United States | ||
IPO Launch date 1992-02-26 | CEO, President & Director Mr. Sassine Ghazi | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 20000 | Website https://www.synopsys.com |
Full time employees 20000 | Website https://www.synopsys.com |
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. 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 intellectual property (IP) solutions for UCIe, USB, PCI Express, DDR, Ethernet, MIPI, and HDMI; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

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