Should you consider NASDAQ:SNPS for quality investing?

In this article we will dive into SYNOPSYS INC (NASDAQ:SNPS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SYNOPSYS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• Over the past 5 years, SYNOPSYS INC has experienced impressive revenue growth, with 13.36% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• SYNOPSYS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 92.03% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of SYNOPSYS INC stands at 0.01, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 113.0%, SYNOPSYS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• SYNOPSYS INC has experienced impressive EBIT growth over the past 5 years, with 29.26% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, SYNOPSYS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:SNPS?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to SNPS. SNPS was compared to 278 industry peers in the Software industry. Both the health and profitability get an excellent rating, making SNPS a very profitable company, without any liquidiy or solvency issues. SNPS is valued quite expensively, but it does show have an excellent growth rating. With these ratings, SNPS could be worth investigating further for growth and quality investing!.

Our latest full fundamental report of SNPS contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.