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 77.86 percent. This connotes that the company is making $0.78 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.
The company has Profit Margin (PM) of
18.48 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of
18.53 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.19.
The successful prediction of Synopsys
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Synopsys, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Synopsys based on Synopsys hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Synopsys's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Synopsys's related companies.
Use Technical Analysis to project Synopsys expected Price
Synopsys technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Synopsys technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Synopsys trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...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 Synopsys'
gross profit and other
fundamental indicators for more details.
Going after Synopsys Financials
The company reported the previous year's revenue of 4.08
B. Net Income was 753.52
M with profit before overhead, payroll, taxes, and interest of 2.94
B.
Deferred Revenue Breakdown
Synopsys Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to drop to about 838.9
M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Synopsys Deferred Revenue is relatively stable at the moment as compared to the past year. Synopsys reported last year Deferred Revenue of 1.05 Billion
| 2010 | 379.76 Million |
| 2011 | 902.05 Million |
| 2012 | 882.29 Million |
| 2013 | 1.01 Billion |
| 2014 | 1.06 Billion |
| 2015 | 1.17 Billion |
| 2020 | 1.05 Billion |
| 2021 | 838.85 Million |
Our take on Synopsys small fall
Latest jensen alpha is at 0.11. Synopsys currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.11. However, we advise investors to further question Synopsys expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Synopsys' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Synopsys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Synopsys Implied Volatility
Synopsys' implied volatility exposes the market's sentiment of Synopsys stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Synopsys' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Synopsys stock will not fluctuate a lot when Synopsys' options are near their expiration.
Our Conclusion on Synopsys
When is the right time to buy or sell Synopsys? Buying stocks such as Synopsys isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To summarize, as of the 1st of December 2021, our analysis shows that Synopsys responds to the market. The enterprise is
overvalued and projects
very small chance of financial distress for the next 2 years. However, our current 90 days Buy-Hold-Sell recommendation on the enterprise is
Strong Buy.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 Ellen Johnson do not own shares of Synopsys. Please refer to our
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