Synopsys, Inc. (SNPS) on Decifer

Why it ranks here

• Its returns on invested money are modest, around 2% and it turns most of its profit into real cash.
• Revenue is growing about 15% a year and profits are expected to grow 16%.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind but its balance sheet leaves little room to fund growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.
• It trades about 16% above similar companies, and its growth does not yet back up that price.

The current read

The evidence on SNPS lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: price is lagging the market story behind this name, a sign the connection is not paying off, worth watching but not the weight of the evidence.

Read the full SNPS research brief · See all quality rankings

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