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SYNOPSYS INC (NASDAQ:SNPS) Exhibits Quality Stock Traits. Here's Why.

By Mill Chart

Last update: Jul 9, 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.

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Highlighting Notable Quality Metrics of NASDAQ:SNPS.

  • 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.
  • The ROIC excluding cash and goodwill of SYNOPSYS INC stands at 41.23%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 29.26%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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.

A complete fundamental analysis of NASDAQ:SNPS

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score 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. SNPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNPS is valued quite expensive, but it does show an excellent growth. These ratings would make SNPS suitable for growth and quality investing!

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

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


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.