Synopsys reported a solid second quarter, mildly beating our revenue and adjusted EPS expectations. Revenue grew 42% year over year, affected by the Ansys acquisition, and management raised its full-year outlook (EPS guide up 2% at the midpoint).
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) | 34.70 | 26.61 | 51.91 |
Price/Book Value | 2.92 | 3.17 | 16.43 |
Price/Sales | 9.83 | 2.65 | 19.33 |
Price/Cash Flow | 32.24 | 18.87 | 53.76 |
|
Metric
|
SNPS
|
SIE
|
CDNS
|
|---|---|---|---|
Quick Ratio | 0.99 | 1.01 | 1.13 |
Current Ratio | 1.43 | 1.39 | 1.47 |
Interest Coverage | 1.98 | 5.90 | 13.61 |
|
Metric
|
SNPS
|
SIE
|
CDNS
|
|---|---|---|---|
Return on Assets (Normalized) | 3.31% | 5.09% | 15.60% |
Return on Equity (Normalized) | 5.59% | 13.61% | 29.09% |
Return on Invested Capital (Normalized) | 4.92% | 6.25% | 19.81% |
|
1-Day Chart
|
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Morningstar Rating for Stocks
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United States