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Reasonable growth and debt and a high ROIC for SYNOPSYS INC (NASDAQ:SNPS).

By Mill Chart

Last update: Apr 2, 2024

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.

A Deep Dive into SYNOPSYS INC's Quality Metrics.

  • 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 59.32% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • 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.
  • 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.

How does the complete fundamental picture look for NASDAQ:SNPS?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall SNPS gets a fundamental rating of 7 out of 10. We evaluated SNPS against 278 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 growing strongly while it is still valued neutral. This is a good combination! This makes SNPS very considerable for growth and quality investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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SYNOPSYS INC

NASDAQ:SNPS (5/29/2024, 7:00:02 PM)

After market: 580 -0.21 (-0.04%)

580.21

-7.73 (-1.31%)

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