Qualtix Stock Brief

Synopsys, Inc. (SNPS) stock analysis: business quality, valuation, and entry timing

Synopsys provides electronic design automation software and chip design IP used by nearly every semiconductor company. Recurring, high-margin revenue supports its quality, often with a high valuation. Public Qualtix model snapshot from 2026-10-26 for SNPS: business quality 49/100, a mixed model reading and valuation Fair. Today's verdict and Entry Timing are shown after a free sign-in.

Qualtix evaluates SNPS with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.

Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.

SNPS public evidence metrics from the latest validated Qualtix snapshot

MetricValueWhy it mattersSource
Revenue growth21.4%3-year revenue CAGRFMP, computed
FCF margin29.6%Free cash flow divided by revenueFMP, computed
Operating margin9.8%Profitability marginFMP, computed
Gross margin72.4%Revenue retained after direct costsFMP, computed
Return on capital (pre-tax)2.2%Operating profit before tax, divided by equity plus debtFMP, computed
ROE3.5%Return on equityFMP, computed
Cash and debtCash and investments $3.6B / Debt $10.8BBalance-sheet contextFMP, reported
TTM P/E81.2xPrice to trailing earningsFMP, computed

Qualtix view

  • Business quality: 49/100, a mixed model reading.
  • Valuation is currently labeled Fair, which the model weighs separately from business quality.

Today's verdict

  • Today's model verdict and Entry Timing for SNPS update every market day and are shown after a free sign-in.

Data and snapshot dates

  • Model snapshot date: 2026-10-26.
  • Financial data through: 2026-07-31.
  • Scored by the current Qualtix model.
  • Data-confidence status: high.

What supports the current view

  • Business Quality and Valuation are shown above; the full brief adds the complete model view.

What weakens the current view

  • Business quality remains below the model's stronger-company threshold (49/100).
  • Valuation is currently labeled Fair, so price still matters.

What changed

  • Business Quality was unchanged from the previous snapshot.

What to research next

  • Start with the weaker Business Quality signal (49/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
  • Compare SNPS's Fair valuation label with similar companies before treating price as a clear advantage.
  • Compare SNPS with CDNS and NVDA to see whether the model edge is company-specific or sector-wide.

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Qualtix is for research and education only. It is not financial advice.