Synopsys Inc
NASDAQ:SNPS

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Synopsys Inc
NASDAQ:SNPS
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Price: 460.855 USD 0.4%
Market Cap: 71.3B USD

Operating Margin
Synopsys Inc

20.7%
Current
23%
Average
3.4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
20.7%
=
Operating Profit
1.3B
/
Revenue
6.1B

Operating Margin Across Competitors

Country Company Market Cap Operating
Margin
US
Synopsys Inc
NASDAQ:SNPS
71B USD
21%
US
Ezenia! Inc
OTC:EZEN
567B USD
-132%
DE
SAP SE
XETRA:SAP
297.8B EUR
26%
US
Palantir Technologies Inc
NYSE:PLTR
269.8B USD
11%
US
Salesforce Inc
NYSE:CRM
257.2B USD
20%
US
Intuit Inc
NASDAQ:INTU
175.5B USD
24%
US
Adobe Inc
NASDAQ:ADBE
165.1B USD
36%
US
NCR Corp
LSE:0K45
110.6B USD
1%
US
Microstrategy Inc
NASDAQ:MSTR
93.4B USD
-14%
US
Applovin Corp
NASDAQ:APP
91.6B USD
40%
US
Cadence Design Systems Inc
NASDAQ:CDNS
81.7B USD
31%

Synopsys Inc
Glance View

Economic Moat
Narrow
Market Cap
71.3B 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
389.151 USD
Overvaluation 16%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
20.7%
=
Operating Profit
1.3B
/
Revenue
6.1B
What is the Operating Margin of Synopsys Inc?

Based on Synopsys Inc's most recent financial statements, the company has Operating Margin of 20.7%.

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