Why SYNOPSYS INC (NASDAQ:SNPS) qualifies as a quality stock.

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.

Highlighting Notable Quality Metrics of NASDAQ:SNPS.

• 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 41.23%, 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.
• 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.
• The Profit Quality (5-year) of SYNOPSYS INC stands at 113.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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.

Zooming in on the fundamentals.

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.

Taking everything into account, SNPS scores 7 out of 10 in our fundamental rating. SNPS was compared to 276 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 shows excellent growth, but is valued quite expensive already. 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.

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

Disclaimer

This article should in no way be interpreted as advice. 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.