Synopsys, Inc. (SNPS)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-26, Synopsys traded at $454.33, giving an $87.1B market value. FairStock’s calculations show a P/E of 79.15, P/B of 2.79, EV/EBITDA of 24.01, and an FCF yield of 3.2% on $2.7B trailing free cash flow. Against the Graham Number of $145.07, the margin of safety is -196.51%, so the price is far above a conservative asset-and-earnings value. The balance sheet looks sound: debt-to-equity is 0.35, Piotroski is 8/9, and Altman Z is 3.42. But returns are weak: ROE is 3.66% and ROCE is 1.35%. Business momentum is uneven. In fiscal Q3 2026, the quarter ended 2026-07-31, revenue was $2.5B, net income $545.8M, and diluted EPS $2.84; fiscal Q2 2026 net income was only $17.1M and EPS $0.09, while fiscal Q1 2026 net income was $65.0M and EPS $0.34. For full years, FY2025 revenue was $7.1B, net income $1.3B, and EPS $8.04; FY2024 EPS was higher at $14.51, and FY2023 EPS was $7.92. FairStock calls it a STALWART because profit grew 14.9% and revenue 13.9% a year over five years, but the recent quarterly lumpiness means I would not pay a very high multiple for headline growth alone. The company sells design automation and design IP into semiconductors—a specialist business—but the figures show good cash generation and balance-sheet strength are offset by low accounting returns and a demanding price.

In plain English: Synopsys sells software and design blocks that help companies create chips and electronics. The business is growing and has a solid balance sheet, but recent profits have been uneven and the shares look very expensive compared with earnings and asset value. At the current price, the numbers do not offer a bargain; strong future growth is needed to support the price.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2025-10-31) · FY2024 10-K (period ended 2024-10-31) · FY2023 10-K (period ended 2023-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer