Synopsys Story

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SNPS -- USA Stock  

USD 249.58  1.06  0.42%

Synopsys PPandE Turnover is relatively stable at the moment as compared to the past year. Synopsys reported last year PPandE Turnover of 8.19. As of 12/02/2020, Receivables Turnover is likely to grow to 7.66, while Revenue Per Employee is likely to drop slightly above 209.2 K. Synopsys is scheduled to announce its earnings today. The next earnings report is expected on the 17th of February 2021. As some conservatives are trying to avoid technology space, we'll sum up Synopsys a little further and explain its current market possibilities. We will analyze why it could be a much better year for Synopsys shareholders. Synopsys follows the market closely. We can now discuss Synopsys as a potential investment option for your portfolios.
Published over three months ago
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Check this if you are still holding on to Synopsys (NASDAQ:SNPS)
Macroaxis provides recommendation on Synopsys to complement and cross-verify current analyst consensus on Synopsys. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. This firm dividends can provide a clue to the current value of the stock. Synopsys is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Synopsys income statement, its balance sheet, and the statement of cash flows. Potential Synopsys investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Synopsys investors may use each financial statement separately, they are all related. The changes in Synopsys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Synopsys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Synopsys fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Synopsys performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Synopsys shares is the value that is considered the true value of the share. If the intrinsic value of Synopsys is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Synopsys.
Please read more on our fundamental analysis page.

What is Synopsys Asset Breakdown?

Synopsys reports assets on its Balance Sheet. It represents the amount of Synopsys resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Synopsys volatility, please check the breakdown of all its fundamentals

Are Synopsys Earnings Expected to grow?

The future earnings power of Synopsys involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Synopsys factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Synopsys stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Synopsys expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Synopsys, but it might be worth checking our own buy vs. sell analysis

Synopsys Gross Profit

Synopsys Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Synopsys previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Synopsys Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Going after Synopsys Financials

Institutional investors typically avoid acquiring a high percentage of Synopsys stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Synopsys is distributed among investors.

Ownership Allocation

Synopsys maintains a total of 151.76 Million outstanding shares. The majority of Synopsys outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Synopsys to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Synopsys. Please pay attention to any change in the institutional holdings of Synopsys as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
7.67%
Institutions
91.7%
Retail Investors7.67
Insiders0.63
Institutions91.7
 2018 2019 2020 (projected)
Receivables553.89 M498.51 M415.78 M
Inventories141.52 M127.37 M122.6 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Synopsys has an asset utilization ratio of 66.98 percent. This connotes that the company is making $0.67 for each dollar of assets. An increasing asset utilization means that Synopsys is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
3.4 B
Goodwill
2.7 B
Current Assets1.45 Billion18.42
Assets Non Current3.42 Billion43.39
Goodwill2.7 Billion34.29
Tax Assets307.68 Million3.9

Will Synopsys pull back in January 2021?

The downside variance is down to 5.79 as of today. As of the 2nd of December, Synopsys has the Risk Adjusted Performance of 0.0516, semi deviation of 2.35, and Coefficient Of Variation of 2689.6. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Synopsys, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Synopsys, which can be compared to its competition. Please validate Synopsys variance and potential upside to decide if Synopsys is priced more or less accurately, providing market reflects its prevalent price of 230.02 per share. Given that Synopsys has jensen alpha of 0.0461, we advise you to double-check Synopsys's current market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While many of the other players under the software?infrastructure industry are still a bit expensive, Synopsys may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe it may be a good time to exit Synopsys as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Synopsys.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Synopsys. Please refer to our Terms of Use for any information regarding our disclosure principles.

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