Synopsys, Inc. (SNPS) has a MoatMap StockRank of 43/100 based on Quality (48/100), Value (32/100), and Momentum (49/100) factor scores. The current signal is HOLD. Synopsys, an Electronic Design Automation (EDA) software duopolist, is an indispensable and indirect beneficiary of the surging AI Adoption & Productivity Imperative. As all advanced AI chips require sophisticated design tools, Synopsys's mission-critical software creates an extremely high switching-cost moat, driving high ROIC and pricing power. Furthermore, the push for Deglobalization and Resilient Supply Chains means countries are investing heavily in domestic chip design capabilities, creating a powerful, unpriced tailwind for EDA providers. This makes Synopsys a classic quality compounder with an asymmetric risk-reward profile, as its foundational role in the semiconductor ecosystem is often underappreciated compared to chip manufacturers themselves.
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, intellectual property (IP), and services essential for semiconductor design and verification. The company holds a dominant market share in the critical EDA software market, establishing high switching costs for its customers and making it foundational to the semiconductor industry. Synopsys is an indispensable partner for chip innovation.
| Price | $534.56 |
| Market Cap | $100.5B |
| P/E (TTM) | 81.99 |
| P/E (Forward) | 31.34 |
| Price/Book | 3.35 |
| Return on Equity | 5.5% |
| Return on Invested Capital | 4.1% |
| Debt/Equity | 35.58 |
| Gross Margin | 82.0% |
| Operating Margin | 13.3% |
| Revenue Growth | 65.5% |
| Free Cash Flow | $3.1B |
Synopsys, Inc. operates in the Software - Infrastructure industry, part of the Technology sector (United States).