Synopsys Stock Intrinsic Value – SYNOPSYS Reports Third Quarter Financial Year 2023 Earnings Results on July 31 2023
August 18, 2023
🌥️Earnings Overview
On July 31, 2023, SYNOPSYS ($NASDAQ:SNPS) revealed their financial results for the third quarter of the 2023 fiscal year. Their total revenue was USD 1487.3 million, representing a 19.2% year-on-year increase. In addition, their net income for Q3 was USD 336.2 million, which is a 51.0% jump from the same quarter in the previous year.
Stock Price
On Wednesday, SYNOPSYS stock opened at $436.6 but closed at $428.2, down by 2.0% from its prior closing price of 436.7. The company’s CEO, Aart de Geus, said that the company was pleased to report better-than-expected results and that they were confident that their strategy will continue to drive strong performance in the future quarters. He said that their technology and products will continue to enable their customers to innovate faster and more efficiently than ever before.
Analysts believe that the company is well-positioned for the future and is likely to continue to report solid growth in the coming quarters. They are optimistic about the company’s prospects and believe that its results for the fourth quarter will be even better than expected. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Synopsys. SYNOPSYS_Reports_Third_Quarter_Financial_Year_2023_Earnings_Results_on_July_31_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 5.53k | 1.03k | 20.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Synopsys. SYNOPSYS_Reports_Third_Quarter_Financial_Year_2023_Earnings_Results_on_July_31_2023″>More…
| Operations | Investing | Financing |
| 1.77k | -222.85 | -1.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Synopsys. SYNOPSYS_Reports_Third_Quarter_Financial_Year_2023_Earnings_Results_on_July_31_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.92k | 3.92k | 39.17 |
Key Ratios Snapshot
Some of the financial key ratios for Synopsys are shown below. SYNOPSYS_Reports_Third_Quarter_Financial_Year_2023_Earnings_Results_on_July_31_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.3% | 23.4% | 20.4% |
| FCF Margin | ROE | ROA |
| 28.9% | 12.0% | 7.1% |
Analysis – Synopsys Stock Intrinsic Value
At GoodWhale, we take a detailed look at the fundamentals of SYNOPSYS to provide a comprehensive valuation analysis. After crunching the numbers, our proprietary Valuation Line gives the fair value of the SYNOPSYS stock at around $358.4. Currently, the stock is trading at $428.2, which is a fair price that is overvalued by 19.5%. We recommend investors to be cautious when considering to invest in SYNOPSYS at this point in time as it is overpriced. More…
Peers
Its main competitors are Cadence Design Systems Inc, Goodpatch Inc, and Zuken Elmic Inc.
– Cadence Design Systems Inc ($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
Investing in Synopsys could be a wise decision given its recent strong performance. For the third quarter of financial year 2023, the company reported total revenue of USD 1487.3 million, a 19.2% increase from the same period in the previous year. In addition, net income for Q3 was USD 336.2 million, representing a 51.0% year-over-year increase. With such promising results, investing in Synopsys may provide investors with an opportunity to capitalize on the success of the company and its likely future growth.
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