Synopsys Inc
NASDAQ:SNPS

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Synopsys Inc
NASDAQ:SNPS
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Price: 406.89 USD -5.09% Market Closed
Market Cap: 62.9B USD

Net Margin
Synopsys Inc

34.8%
Current
23%
Average
1.9%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
34.8%
=
Net Income
2.1B
/
Revenue
6.1B

Net Margin Across Competitors

Country Company Market Cap Net
Margin
US
Synopsys Inc
NASDAQ:SNPS
62.9B USD
35%
US
Ezenia! Inc
OTC:EZEN
567B USD
-130%
DE
SAP SE
XETRA:SAP
265.6B EUR
9%
US
Salesforce Inc
NYSE:CRM
244.1B USD
16%
US
Palantir Technologies Inc
NYSE:PLTR
201.8B USD
16%
US
Intuit Inc
NASDAQ:INTU
161.5B USD
18%
US
Adobe Inc
NASDAQ:ADBE
154.1B USD
31%
US
NCR Corp
LSE:0K45
102.6B USD
33%
US
Applovin Corp
NASDAQ:APP
89.7B USD
33%
US
Cadence Design Systems Inc
NASDAQ:CDNS
69.6B USD
23%
US
Microstrategy Inc
NASDAQ:MSTR
66.9B USD
-252%

Synopsys Inc
Glance View

Economic Moat
Narrow
Market Cap
62.9B USD
Industry
Technology

In the tightly-knit world of semiconductor design, Synopsys Inc. stands as a titan, quietly powering the intricate process behind the chips that drive today’s technology. Founded in 1986, the California-based company has carved out a critical niche by providing Electronic Design Automation (EDA) tools, which are indispensable for chip manufacturers aiming for efficiency and precision. Think of their software as the sculptor's chisel, indispensable for crafting the silicon gardens that populate everything from smartphones to servers. Synopsys’s offerings include tools for design verification, which ensure that chips function as intended without costly rework, and for design for manufacturing, confirming designs can be reliably produced at a high yield. This software automates and streamlines complex design processes, enabling companies to reduce time-to-market and development costs—a crucial competitive edge in an industry characterized by rapid change. Synopsys thrives on a business model primarily driven by software licenses and subscriptions. Its clients, a mélange of semiconductor giants and fledgling design firms, pay for access to Synopsys’s tools, with arrangements typically spanning multiple years. Over time, this model has evolved to incorporate software-as-a-service (SaaS) elements, allowing the company to capture recurring revenue streams. Additionally, with the semiconductor landscape expanding to new horizons—augmented reality, AI, and beyond—Synopsys has diversified its portfolio to encompass IP licensing. This offering provides pre-designed and verified circuit components that clients can plug directly into their chip designs, further enhancing design speed and efficiency. In essence, Synopsys operates at the core of technological innovation, equipping engineers with the sophisticated tools and templates necessary to create the future of computing.

SNPS Intrinsic Value
375.02 USD
Overvaluation 8%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
34.8%
=
Net Income
2.1B
/
Revenue
6.1B
What is the Net Margin of Synopsys Inc?

Based on Synopsys Inc's most recent financial statements, the company has Net Margin of 34.8%.

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