Synopsys delivered another solid quarter, with results exceeding our estimates on the top and bottom lines. Revenue grew 42% year over year, incorporating Ansys, and encouragingly, management raised the full-year outlook by slightly more than the quarterly beat.
Synopsys’ wide moat stems from high customer switching costs and intangible assets that virtually no other software vendor or startup can match.
Slower growth in IP revenue and even lower margins could continue as the business transitions to more custom, chiplet-focused sales.
|
Metric
|
SNPS
|
SIE
|
CDNS
|
|---|---|---|---|
Price/Earnings (Normalized) | 35.22 | 26.35 | 43.90 |
Price/Book Value | 3.01 | 3.09 | 14.08 |
Price/Sales | 9.95 | 2.63 | 16.47 |
Price/Cash Flow | 31.42 | 17.95 | 42.77 |
|
Metric
|
SNPS
|
SIE
|
CDNS
|
|---|---|---|---|
Quick Ratio | 0.99 | 1.14 | 1.36 |
Current Ratio | 1.34 | 1.44 | 1.74 |
Interest Coverage | 2.97 | 6.49 | 14.95 |
|
Metric
|
SNPS
|
SIE
|
CDNS
|
|---|---|---|---|
Return on Assets (Normalized) | 5.58% | 5.28% | 15.78% |
Return on Equity (Normalized) | 8.97% | 13.71% | 28.98% |
Return on Invested Capital (Normalized) | 7.42% | 6.47% | 20.31% |
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1-Day Chart
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Morningstar Rating for Stocks
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United States