If EPS Growth Is Important To You, Synopsys (NASDAQ:SNPS) Presents An Opportunity

Simply Wall St.11-06 20:01

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the ...

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But the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/eps-growth-important-synopsys-nasdaq-120142654.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://finance.yahoo.com/news/eps-growth-important-synopsys-nasdaq-120142654.html","article_id":"2481603467","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/3wFOxca.gMo3EgB9BjBM9g--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/41bdd0c670f621394929d5266c5d6c72"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481603467","pubTimestamp":1730894502,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"For beginners, it can seem like a good idea  to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Synopsys . While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.The Synopsys CEO received US$10m in compensation for the year ending October 2023. That is actually below the median for CEO's of similarly sized companies. While the level of","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"如果每股收益增长对您很重要，Synopsys（纳斯达克股票代码：SNPS）提供了一个机会","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"NDAQ":1,"SNPS":1},"content_text":"For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. \n If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Synopsys (NASDAQ:SNPS). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. \n See our latest analysis for Synopsys \n How Quickly Is Synopsys Increasing Earnings Per Share? \n Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Impressively, Synopsys has grown EPS by 26% per year, compound, in the last three years. So it's not surprising to see the company trades on a very high multiple of (past) earnings. \n It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Synopsys maintained stable EBIT margins over the last year, all while growing revenue 26% to US$6.5b. That's encouraging news for the company! \n In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. \n\n\n\n  NasdaqGS:SNPS Earnings and Revenue History November 6th 2024\n \n\n In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Synopsys' forecast profits? \nAre Synopsys Insiders Aligned With All Shareholders?\n Since Synopsys has a market capitalisation of US$81b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$472m. This comes in at 0.6% of shares in the company, which is a fair amount of a business of this size. This still shows shareholders there is a degree of alignment between management and themselves. \n It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Our quick analysis into CEO remuneration would seem to indicate they are. Our analysis has discovered that the median total compensation for the CEOs of companies like Synopsys, with market caps over US$8.0b, is about US$13m. \n The Synopsys CEO received US$10m in compensation for the year ending October 2023. That is actually below the median for CEO's of similarly sized companies. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. Generally, arguments can be made that reasonable pay levels attest to good decision-making. \n Is Synopsys Worth Keeping An Eye On? \n For growth investors, Synopsys' raw rate of earnings growth is a beacon in the night. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. This may only be a fast rundown, but the key takeaway is that Synopsys is worth keeping an eye on. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusive discounted cashflow valuation of Synopsys. You might benefit from giving it a glance today. \n Although Synopsys certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. \nPlease note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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