SYNOPSYS INC (NASDAQ:SNPS) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SYNOPSYS INC (NASDAQ:SNPS) is suited for quality investing. Investors should of course do their own research, but we spotted SYNOPSYS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of SYNOPSYS INC

• The 5-year revenue growth of SYNOPSYS INC has been remarkable, with 13.36% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 59.32%, SYNOPSYS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 0.02, SYNOPSYS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• SYNOPSYS INC exhibits impressive Profit Quality (5-year) with a 113.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• SYNOPSYS INC has consistently achieved strong EBIT growth over the past 5 years, with a 29.26% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• SYNOPSYS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NASDAQ:SNPS telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall SNPS gets a fundamental rating of 7 out of 10. We evaluated SNPS against 279 industry peers in the Software industry. SNPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNPS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make SNPS a good candidate for growth and quality investing.

For an up to date full fundamental analysis you can check the fundamental report of SNPS

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.