Synopsys, Inc.
SNPS
Market Cap$74.67B
Close$
Earnings Call Q1 2025
February 26, 2025 - AI Summary
Solid Start to FY 2025: Synopsys reported Q1 fiscal year 2025 revenue of $1.46 billion, exceeding guidance, but down 4% year-over-year. Non-GAAP EPS was $3.03, above guidance, though down 10% y/y. This reflects challenges faced due to one less work week compared to Q1 '24.
AI & HPC Demand vs. Traditional Markets: While demand for AI and High-Performance Computing (HPC) remains robust, other sectors like industrial, automotive, and consumer electronics are still struggling. However, momentum in AI-related design activities is driving significant opportunities, with customer engagements indicating a shift towards AI-integrated chip designs.
China's Market Challenges: Sales in China have significantly declined, with Q1 sales at $174 million, a drop from last year’s average of ~$250 million per quarter. Synopsys anticipates continued deceleration in China due to regulatory pressures and a slow local economy, forecasting that China will finish below the corporate average for FY 2025.
Exclusive for Stockcircle Pro members
Sign up
$323.22
37.3% downside
Current Fair Value
37.3% downsideOvervalued by 37.3% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $74.67 Billion |
|---|---|
| Enterprise Value | $73.24 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $14.78 |
| Beta | 1.16 |
| Outstanding Shares | 154,408,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 35.34 |
|---|---|
| PEG | -103.44 |
| Price to Sales | 13.22 |
| Price to Book Ratio | 8.6 |
| Enterprise Value to Revenue | 12.06 |
| Enterprise Value to EBIT | 56.09 |
| Enterprise Value to Net Income | 35 |
| Total Debt to Enterprise | 0.03 |
| Debt to Equity | 0.24 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Synopsys, Inc.
13,000 employeesSynopsys, is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in elec...