WinstonWınston
Back
Stock

Synopsys

SNPS
48
Software - Infrastructure · Technology
Also trades as: 0LBP.L GBP 4.51 (-2.25%)
Price
$454.63
-13.48 (-2.88%)
Market Cap
$87.12B
Exchange
NASDAQ
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 18, 2026 · filings through Jul 31, 2026

§How the score breaks down

Quality
Good
17/30
Growth
Mixed
7/20
Cash Flow
Exceptional
10/10
Stability
Good
5/10
Valuation
Good
5/10
Ownership
Weak
2/15
Dividends
Not counted
n/a

46 of 95 counted points = Winston Score 48. Pillars marked n/a do not apply to this company and are left out of the total.

Track this stock — start free trial

Share count rising — dilution

+2.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 157.3M (2021) → 161.7M (2025)

§Winston Score History

The full picture

Synopsys makes software that engineers use to design computer chips. Before a chip is physically built, designers use Synopsys tools to plan, test, and verify that the chip will work correctly — catching mistakes in software before spending millions on manufacturing. The company is one of the two dominant players in this niche field, called electronic design automation (EDA), alongside Cadence Design Systems.

Synopsys earns most of its revenue through annual software licenses and subscriptions sold to semiconductor companies like Intel, NVIDIA, and Samsung, as well as large tech firms that design their own chips. It operates globally, with significant business in the US, Europe, and Asia, and generates over $6 billion in annual revenue. Its deep integration into customers' chip design workflows makes switching costs very high, which is a strong competitive moat. The key risk is that chip industry downturns reduce customer spending on design tools, and export restrictions on advanced chip technology to China could limit a meaningful portion of its international revenue.

Politician Trades

34 trades / 12mo

17 Congressional buys and 17 sells on SNPS in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+42.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+88.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2.5B/ year

↑ Rising (+19% vs prior year)

35.1% of revenue

2.3x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Synopsys grew revenue 42% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
72.6%
Premium pricing power — 72.6% gross margin
Profit after running costs
Operating Margin
14.4%
Healthy — 14.4% operating margin
Return on the money invested
ROCE
2.2%
Weak — 2.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth
Sales YoY
+46.3%
Fast-growing sales (+46.3% YoY)
Profit growth
EPS YoY
-55.4%
Earnings shrinking (-55.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash
Cash Conversion
277%
Turns 277% of profit into real cash
Spare cash per sale
FCF Margin
29.6%
Converts sales into free cash efficiently (29.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns
Debt / Equity
0.32
Conservative — low debt load (0.32)
Covers its interest
Interest Cover
1.47x
Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit
P/E Ratio (TTM)
78.9x
Expensive — P/E 78.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+58.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (78.9 → 21.0)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial