✏️ Stock Research ‼️

Synopsys Inc.

Ticker: $SNPS
Sector: Technology
Current Price: $205.42
Market Cap: $30.81B

🔹engages in the provision of software products & consulting services in the electronic design automation industry through semiconductors & system design.

[Thread]
🧾 Financial Metrics 🧾

EV/Gross Profit: 45.15 ❌
P/FCF: 40.36 ❌
Current Ratio: 0.95 ❌
Prev. 5Y Growth: 11.81% ✅
Proj. 5Y Growth: 15.20% ✅
ROA: 7.13% ✅
ROIC: 8.64% ✅

[cont.]
🗣 News 🗣

In June, the Board of Directors replenished the stock repurchase authorization to $500M. The fund is periodically replenished.

That same month, $SNPS acquired Qualtera, an up & coming provider of collaborative data analytics for semiconductor test & mfg.

[cont.]
🗣 News 🗣

$SNPS continues to be a market leader in simulation for AI chip design. Recently, AI startup Graphcore Ltd. used the Synopsys VCS simulation solution to verify its Colossus GC200 Intelligence Processing Unit (IPU), the most complex microprocessor ever built.

[cont.]
🗣 News 🗣

Last week, $SNPS announced a new virtual prototyping solution for EV electronic & hardware development by utilizing several of its industry-leading technologies.

This week, Sassine Ghazi was named COO. He has previously worked as a design engineer at Intel.

[cont.]
🔅 Summary 🔅

👉🏼Stock Price YTD: +42.40% 👀

👉🏼Q3 earnings reported yesterday afternoon - EPS beat by 29% ✅

👉🏼Q3/20 Revenue: $964M (13% growth YoY) ✅

👉🏼Double digit revenue growth across all product groups ✅

👉🏼Raised full 2020 guidance due to strong Q3 results 👀

[cont.]
👉🏼Q3 Net Income: $253M / $1.62 EPS (GAAP) growth of 153% YoY ✅

👉🏼Q3/20 operating margin: 21.8% ✅

👉🏼Expecting operating margin to rise to high-20’s in Q4 👀

👉🏼Q4 Guidance: Revenue $1B-$1.03B, GAAP EPS $1.10-$1.21, operating cash flow total for FY20 of $900M ✅

[cont.]
👉🏼Updated 2020 guidance:
9% revenue growth YoY 👏🏽
17% EPS growth YoY 👏🏽
12% OCF growth YoY 👏🏽

👉🏼Diverse software solutions (Cloud, AI, EV, 5G, IoT, etc.) ✅

👉🏼Advanced DTCO & FinFET chip design ✅

👉🏼90% Recurring Revenue ✅

👉🏼Broke resistance of $204 after hours 🚀

[cont.]
⚠️Disclaimer: I am not a financial advisor. This information is intended for educational purposes only.
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