2.66%
8.14%
-1.88%
0.09%
-3.10%
69.52%
249.00%

Company Description

Synopsys, Inc.provides electronic design automation software products used to design and test integrated circuits.The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.


It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; 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.In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions.Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices.


Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions.It serves electronics, financial services, automotive, medicine, energy, and industrial areas.The company was incorporated in 1986 and is headquartered in Mountain View, California.

Market Data

Last Price 526.36
Change Percentage 2.66%
Open 515.9
Previous Close 512.71
Market Cap ( Millions) 81364
Volume 738171
Year High 629.38
Year Low 457.52
M A 50 519.81
M A 200 537.46

Financial Ratios

FCF Yield 1.58%
Dividend Yield 0.00%
ROE 29.66%
Debt / Equity 7.61%
Net Debt / EBIDTA -196.79%
Price To Book 9.13
Price Earnings Ratio 36.28
Price To FCF 63.37
Price To sales 12.98
EV / EBITDA 47.88

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Design Automation

Expected Growth : 7.5 %

What the company do ?

Design Automation from Synopsys, Inc. is a software solution that automates and optimizes the design and verification of complex semiconductor chips and systems.

Why we expect these perspectives ?

Synopsys' Design Automation segment growth is driven by increasing demand for chip design and verification, fueled by the rise of AI, 5G, and IoT. The company's market-leading position, innovative products, and strategic acquisitions also contribute to its growth. Furthermore, the need for efficient and cost-effective design solutions, as well as the growing importance of semiconductor design in emerging markets, support the segment's 7.5% growth.

Segment nΒ°2 -> Design Intellectual Property

Expected Growth : 7.8 %

What the company do ?

Design Intellectual Property (IP) from Synopsys, Inc. refers to pre-designed and pre-verified blocks of IP that can be easily integrated into a System-on-Chip (SoC) design, reducing development time and costs.

Why we expect these perspectives ?

Synopsys' Design Intellectual Property (IP) growth is driven by increasing demand for complex System-on-Chip (SoC) designs, rising adoption of artificial intelligence (AI) and machine learning (ML) in various industries, and the need for efficient and secure IP solutions. Additionally, the growing importance of IP reuse and the increasing complexity of semiconductor designs also contribute to the 7.8% growth.

Segment nΒ°3 -> Software Integrity

Expected Growth : 8.2 %

What the company do ?

Software Integrity from Synopsys, Inc. provides a comprehensive platform for managing open-source and third-party code risks, ensuring secure and compliant software development.

Why we expect these perspectives ?

Synopsys' Software Integrity segment growth of 8.2% is driven by increasing demand for secure and reliable software, fueled by digital transformation, IoT adoption, and stringent regulatory requirements. Additionally, the rise of DevSecOps and the need for integrated security testing solutions contribute to the segment's growth.

Synopsys, Inc. Products

Product Range What is it ?
Zeus A scalable and flexible verification platform for system-on-chip (SoC) design
VCS A high-performance simulation and verification solution for ASIC and FPGA designs
PrimeTime A sign-off quality static timing analysis (STA) solution for IC design
Coverity A static application security testing (SAST) solution for identifying security vulnerabilities in software
Black Duck An open-source security and license compliance management solution
Defensics A fuzz testing and vulnerability research solution for identifying security vulnerabilities in software and hardware
Polyspace A formal methods-based verification solution for ensuring the correctness and reliability of software
Catapult A high-level synthesis (HLS) solution for designing and verifying digital ICs
HAPS A high-performance prototyping solution for verifying and validating SoC designs

Synopsys, Inc.'s Porter Forces

The threat of substitutes for Synopsys, Inc. is medium due to the presence of alternative software solutions in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.

The bargaining power of customers is low for Synopsys, Inc. due to the company's strong market position and the lack of alternative suppliers for its specialized software solutions.

The bargaining power of suppliers is medium for Synopsys, Inc. due to the company's dependence on a few key suppliers for its software development and maintenance.

The threat of new entrants is high for Synopsys, Inc. due to the relatively low barriers to entry in the software industry and the presence of venture capital funding for startups.

The intensity of rivalry is high for Synopsys, Inc. due to the presence of established competitors in the market and the need for continuous innovation to stay ahead in the industry.

Capital Structure

Value
Debt Weight 10.06%
Debt Cost 3.95%
Equity Weight 89.94%
Equity Cost 9.27%
WACC 8.74%
Leverage 11.19%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
MSFT Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity …
ORCL Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud …
FTNT Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide …
ADBE Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and …
CRWD CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
526.36$
Current Price
526.36$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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