Synopsys Stock Fair Value – SYNOPSYS Reports Fourth Quarter Earnings Results for FY2023

🌥️Earnings Overview

SYNOPSYS ($NASDAQ:SNPS) reported its fourth quarter FY2023 earnings results on October 31 2023. Total revenue had increased 24.5% year-over-year to USD 1599.1 million, and reported net income had grown 127.5%, totaling USD 349.2 million, for the quarter ending November 29 2023.

Share Price

The company saw an increase of 1.6% in its stock prices, with the stock opening at $550.6 and closing at $552.5, up from the prior closing price of $543.7. Overall, these results demonstrate the growth and success that SYNOPSYS has achieved over the past year. Their strong financial performance reinforces their commitment to delivering innovative technology solutions to meet the needs of their customers. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Synopsys. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Synopsys. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Synopsys. More…

Key Ratios Snapshot

Some of the financial key ratios for Synopsys are shown below. More…

Analysis – Synopsys Stock Fair Value

GoodWhale has conducted a fundamental analysis of SYNOPSYS, a provider of software for the semiconductor and electronics industry. Our proprietary Valuation Line suggests that the fair value of SYNOPSYS’ share is around $388.2. At the time of writing, the stock is currently trading at $552.5, meaning it is overvalued by 42.3%. While SYNOPSYS is still a good investment, investors should consider the potential risk of buying at such an inflated price. We recommend investors to reassess the stock at our calculated fair value before committing to the purchase. More…

Peers

Its main competitors are Cadence Design Systems Inc, Goodpatch Inc, and Zuken Elmic Inc.

– Cadence Design Systems Inc ($NASDAQ:CDNS)

Cadence Design Systems is a software company that provides tools that help engineers design semiconductors and other electronic products. The company’s market cap is $43.36 billion, and its return on equity is 22.8%. Cadence’s products are used by engineers to design and verify the manufacturing of semiconductors, computer chips, and other electronic products.

– Goodpatch Inc ($TSE:7351)

Patch Inc is a technology company that provides software development and IT services. The company has a market cap of 5.5 billion as of 2022 and a return on equity of 8.49%. Patch Inc offers a wide range of services including web and mobile application development, cloud computing, big data, and artificial intelligence. The company has a strong focus on helping its clients grow their businesses and expand their reach. Patch Inc has a team of experienced and skilled professionals who are dedicated to providing the best possible services to their clients.

– Zuken Elmic Inc ($TSE:4770)

Zuken Elmic Inc. is a Japanese electronics company that specializes in electronic design automation (EDA) software. The company has a market capitalization of 2 billion as of 2022 and a return on equity of 13.95%. The company’s products are used by electronics manufacturers to design and test printed circuit boards (PCBs). Zuken Elmic’s products are used by some of the world’s largest electronics companies, such as Samsung, LG, and Sony.

Summary

SYNOPSYS reported its earnings results for the fourth quarter of FY2023, ending November 29 2023, showing a significant increase in total revenue of 24.5% year-over-year and a 127.5% growth in reported net income. With these strong financial results, SYNOPSYS appears to be a promising investment opportunity for investors with an interest in technology companies. Its impressive year-over-year growth is a testament to its ability to continuously innovate and develop high-quality products that will likely result in further growth in the future.