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Why Quality Investors Should Delve into SYNOPSYS INC (NASDAQ:SNPS) for Investment Opportunities.

By Mill Chart

Last update: May 16, 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.

Why NASDAQ:SNPS may be interesting for quality investors.

  • SYNOPSYS INC has shown strong performance in revenue growth over the past 5 years, with a 13.36% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 59.32%, SYNOPSYS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • SYNOPSYS INC maintains a healthy Debt/Free Cash Flow Ratio of 0.02, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 113.0%, SYNOPSYS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • 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.

Fundamental analysis 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 277 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, SNPS could be worth investigating further for growth and quality investing!.

Check the latest full fundamental report of SNPS for a complete fundamental analysis.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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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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