Synopsys Inc
NASDAQ:SNPS

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Synopsys Inc
NASDAQ:SNPS
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Price: 516.01 USD 0.31% Market Closed
Market Cap: 79.8B USD

Operating Margin
Synopsys Inc

20.7%
Current
23%
Average
3.3%
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
79.8B USD
21%
US
Ezenia! Inc
OTC:EZEN
567B USD
-132%
DE
SAP SE
XETRA:SAP
309.7B EUR
26%
US
Palantir Technologies Inc
NYSE:PLTR
296.3B USD
13%
US
Salesforce Inc
NYSE:CRM
275.3B USD
20%
US
Intuit Inc
NASDAQ:INTU
187.7B USD
24%
US
Adobe Inc
NASDAQ:ADBE
183B USD
36%
US
NCR Corp
LSE:0K45
140.3B USD
1%
US
Applovin Corp
NASDAQ:APP
125.4B USD
46%
US
Microstrategy Inc
NASDAQ:MSTR
101.6B USD
-14%
US
Cadence Design Systems Inc
NASDAQ:CDNS
87.5B USD
31%

Synopsys Inc
Glance View

Economic Moat
Narrow
Market Cap
79.8B 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
400.06 USD
Overvaluation 22%
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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